The Loyalty Effect：The Hidden Force Behind Growth, Profits, and Lasting Value

Loyaltyisbynomeansdead.Infacttheprinciplesofloyalty...arealiveandwellattheheartofeverycompanywithanenduringrecordofhighproductivity,solidprofits,andsteadyexpansion.FromTheLoyaltyEffectThebusinessworldseemstohavegivenuponloyalty:manymajorcorporationsnowlose-andhavetoreplace-halftheircustomersinfiveyears,halftheiremployeesinfour,andhalftheirinvestorsinlessthanone.FredReichheld'snationalbestsellerTheLoyaltyEffectshowswhycompaniesthatignoretheseskyrocketingdefectionsfaceadismalfutureoflowgrowth,weakprofits,andshortenedlifeexpectancy.Reichhelddemonstratesthepowerofloyalty-basedmanagementasahighlyprofitablealternativetotheeconomicsofperpetualchurn.Hemakesapowerfuleconomiccaseforloyalty-andtakesyouthroughthenumberstoproveit.Hisstartlingconclusion:Evenasmallimprovementincustomerretentioncandoubleprofitsinyourcompany.TheLoyaltyEffectwillchangethewayyouthinkaboutloyalty,profits,andthenatureofbusiness.FredReichheldisaDirectorEmeritusofBain&CompanyandaBainFellow.HeisalsotheauthorofLoyaltyRules!.