Ebook Free The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, by Frederick F. Reichheld, Thomas Teal
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The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, by Frederick F. Reichheld, Thomas Teal
Ebook Free The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, by Frederick F. Reichheld, Thomas Teal
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U.S. corporations now lose half their customers in five years, half their employees in four, and half their investors in less than one. The Loyalty Effect reveals the secrets of successful companies which base their business strategies on loyal relationships. Reichheld lays out the principles that connect value creation, loyalty, growth, and profits, and shows how great companies have used these principles to build loyal customers, loyal employees, and loyal owners.
- Sales Rank: #878210 in Books
- Brand: Harvard Business School Press
- Published on: 1996
- Original language: English
- Number of items: 1
- Dimensions: 1.24" h x 6.60" w x 9.36" l, .0 pounds
- Binding: Hardcover
- 323 pages
- Great product!
From Publishers Weekly
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.
From Booklist
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
Review
"E-Loyalty: Your Secret Weapon on the Web," with Phil Shefter (July/August 2000) "Learning from Customer Defections," (March/April 1996) "Loyalty-Based Management," (March/April 1993) "Zero Defections: Quality Comes to Services," with Earl Sasser (September/October 1990)
Most helpful customer reviews
0 of 0 people found the following review helpful.
One of the Three Most Important Business Books I Have Read
By Bob O'Connor
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 organization can go look for more customers like them.
As a bonus, Reichheld succinctly described the value - and rarity - of admitting and examining failure, in order to learn how to do better.
I was no stranger to marketing when I read this in 1999 (ex-P&G brand person), but it made scales fall from my eyes. I have made money based on what this book taught me.
FYI, the other two books in my top three are The Marketing Edge and Moneyball. Drucker's best is right after that.
0 of 0 people found the following review helpful.
Great timeless lessons. The "fluff" of business IS THE BUSINESS.
By Travis Dommert
Never has one book helped crystallize more disparate fundamentals of business than this one. How do you value a firm? How do you value an employee? How much should spend to solve a customer's issue? What are bad profits and what are they costing you? How do you earn investor loyalty? It's all here and distilled with the clarity and thoroughness of a world class management consultant and teacher.
This is not a quick read per se, but it is well worth the time you invest. If you have ever thought of the happiness of your customers, employees, and investors as "fluff", this may change your thinking. Instead, think DCF of your customer, employee, and investor relationships...put a number to them. Maximize that number. You may find that it requires taking your eye off the bottom line for a minute, but you can trust Mr. Reichheld that the bottom line will be better for it.
0 of 0 people found the following review helpful.
Fundamental Principles of Loyalty - Customers, Employees and Investors
By Edward J. Barton
The cost of loyalty - or more accurately, the cost of defection is the key theme of this book. The author reviews the economics and principles of loyalty based management as it applies not only to customers, but investors and employees as well. The key is not just to retain these key stakeholders, but to select them properly in the first place - and then retain them. There is a tremendously high cost for churn in the investor, employee and customer ranks as measured by several key metrics, such as lifetime present value. Reichheld also discusses the importance of choosing the right metrics and measuring the proper elements - reminding the reader that what gets measured gets managed - and vice versa. A good read for an important perspective on selection, retention and loyalty across stakeholders.
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