Reichheld, a director of Bain & Co., a strategy consulting firm in Boston, takes an old-fashioned concept?loyalty?and shows its relevance to customer retention and long-term profit growth. His position seems obvious, but its import has been lost amid the rapid turnover in the current business climate. He notes that major companies replace half their customers in five years, half their employees in four and a half and their investors in less than one. To counteract this trend, he recommends loyalty-based management, in which businesses not only make a conscious effort to retain customers but also develop strategies for attracting the kind who are likely to remain loyal. Reichheld also posits a "cause-and-effect relationship" between employee and customer loyalty. Writing with Teal, a senior editor at Bain & Co., he makes his point with examples from State Farm, Toyota/Lexus and others that have improved their bottom lines and insured long-term growth by developing loyalty. Illustrations. 50,000 first printing; $80,000 ad/promo; author tour.
Copyright 1996 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.
Much has been written recently lamenting the loss of loyalty in all aspects of society. This loss seems magnified in the corporate world, where job change is often the only ticket for getting ahead and where companies regularly abandon communities and downsize longtime workers out of jobs. In White-Collar Blues, Charles Heckscher last year surveyed the state of middle-management loyalty and offered solutions for rebuilding loyalties. Now Reichheld, director at a strategy consulting firm with its own "loyalty practice," analyzes not only employee but also customer and investor loyalty and demonstrates the measurable results that strong loyalties have on corporate profits. Reichheld notes that traditional accounting systems do not show the "loyalty effect" and offers gauges that do. To make his case, he uses such companies as Lexus, John Deere, and Leo Burnett--the "loyalty royalty" --as examples. David Rouse --This text refers to an out of print or unavailable edition of this title.See all Editorial Reviews
Anyone in business or selling something should read this book.Published 9 months ago by James L. Gibbons
Very good book with great insight on how loyalty between customers, employees, and other stakeholders affect the success of a company and organization. Read morePublished 14 months ago by Anita L. Reichling
Fewer than half of all employees in the U.S. believe that the company they work for is worthy of their loyalty - that is not a fertile field in which to grow customer loyalty. Read morePublished 19 months ago by Loyd E. Eskildson
With this book, Reichheld introduced me to the simple concept of spending the organizations's time and money adding value for their most loyal customers, and profiling them so the... Read morePublished 20 months ago by Bob O'Connor
The Loyalty Effect is a powerful book with a lot of practical application in business today. One of the top executives at my company recommended this to me as a starting point to... Read morePublished 20 months ago by Taylor