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

by Frederick F Reichheld (Author) "LOYALTY IS DEAD, the experts proclaim, and the statistics seem to bear them out ..." (more)

4.8 out of 5 stars See all reviews (16 customer reviews)

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Loyalty Rules: How Today's Leaders Build Lasting Relationships by Frederick F Reichheld
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Product details

Paperback: 323 pages
Publisher: Harvard Business School Press; New edition edition (1 Aug 2001)
Language English
ISBN-10: 1578516870
ISBN-13: 978-1578516872
Product Dimensions: 22.9 x 15.5 x 2.8 cm

Average Customer Review: 4.8 out of 5 stars See all reviews (16 customer reviews)

Amazon.co.uk Sales Rank: 20,087 in Books (See Bestsellers in Books)
Popular in these categories:
#50 in Books > Business, Finance & Law > Management > Management Skills > Leadership
#61 in Books > Business, Finance & Law > Small Business & Entrepreneurship > Entrepeneurship

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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)

Product Description

Loyalty is by no means dead. In fact the principles of loyalty . . . are alive and well at the heart of every company with an enduring record of high productivity, solid profits, and steady expansion.
From The Loyalty Effect

The business world seems to have given up on loyalty: many major corporations now lose-and have to replace-half their customers in five years, half their employees in four, and half their investors in less than one. Fred Reichheld's national bestseller The Loyalty Effect shows why companies that ignore these skyrocketing defections face a dismal future of low growth, weak profits, and shortened life expectancy. Reichheld demonstrates the power of loyalty-based management as a highly profitable alternative to the economics of perpetual churn. He makes a powerful economic case for loyalty-and takes you through the numbers to prove it. His startling conclusion: Even a small improvement in customer retention can double profits in your company. The Loyalty Effect will change the way you think about loyalty, profits, and the nature of business.

Fred Reichheld is a Director Emeritus of Bain & Company and a Bain Fellow. He is also the author of Loyalty Rules!.

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Inside This Book (Learn More)

First Sentence
"LOYALTY IS DEAD, the experts proclaim, and the statistics seem to bear them out." Read the first page

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Customer Reviews

16 Reviews

5 star:		(14)
4 star:		(1)
3 star:		(1)
2 star:		(0)
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Average Customer Review

4.8 out of 5 stars (16 customer reviews)

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Most Helpful Customer Reviews

6 of 6 people found the following review helpful:

5.0 out of 5 stars Outstanding clarity for a confused business world, 10 Jan 2000

By A Customer

This review is from: Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value (Hardcover)

As part of an overall research process into CRM, I came across this book from Fred Reichheld. To say I was enthralled would be an understatement! Reichheld has been able to get to the heart of why so many companies seem to be in a downward spiral of faster and faster responses to sales problems which seem only to make matters worse.

It could be argued that there is not much new in what Reichheld says and looking back 25 years I recall successful companies that were practising what this book preaches.

But recent years have seen an overwhelming focus on profits, growth and short-termism.

Reichheld argues that loyalty must be viewed "not as a tactic but as a strategy." He goes on to say, "The central tenet of this philosophy is that the purpose of a business is to create value, not simply to create profit."

That isn't rocket-science, it's good common-sense. But just as the knowledge of our fore-fathers is being lost under the deluge of 'solutions' from medical science, so it appears that modern business is forgetting the fundamentals of success from just a couple of decades ago.

Any manager or owner of a business that is worried about acquiring and retaining profitable customers MUST read this book. To read it and reject the messages is fine. To read it and realise the sense it conveys is excellent. To ignore the book is a crime.

In more than 35 years in business, I can't remember a book that has given me more insight into what we are all trying to do than The Loyalty Effect by Frederick Reichheld.

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4 of 4 people found the following review helpful:

5.0 out of 5 stars UTTERLY PROFOUND, 13 Sep 2004

By	D C Quinton - See all my reviews

To put as simply as I possibly can, this is an utterly profound business bible. The way business should be, explained with astounding clarity.

This is the best book I have ever read and the day I read something more profound and true to real business success, will be a very surprising one...

This book will most definitely provide the foundation of all my future business activities.

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3 of 3 people found the following review helpful:

5.0 out of 5 stars How to Capture the Most Benefit from Your Business, 28 Jan 1999

By A Customer

This review is from: Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value (Hardcover)

This is an outstanding book for explaining and exploring the economic value of keeping a customer. In explaining those benefits, it becomes clearer how important and affordable it is to keep customers. Unlike most business books, which seem to be written by people who cannot use numbers, this one quantifies its points. It also shows you how to do the same for your business. As such, it is a very practical and important resource for every company. I strongly urge you to read and apply these lessons to your business. In many companies, getting new customers is seen as the solution to virtually every problem. However, a lot of times companies have to get new customers because they have disappointed the old ones. You are better off to find out why you are losing customers, and do something about it. Otherwise, you will just spend a fortune to add new customers who will soon leave you for the same reasons. This book also explains a well-known investing phenomenon, that companies with high loyalty rates are great stocks to own (like Coca-Cola, Gillette, and so forth). Did Warren Buffett know this all along? I should mention that I am a management consultant, but have no connection to the firm that wrote this book.

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Most Recent Customer Reviews

5.0 out of 5 stars How to Achieve and Then Sustain Loyalty
I read this book when it was first published and recently re-read it. Those who have checked out my reviews of other books which address many of the same issues already know that... Read more

Published on 7 Feb 2006 by Robert Morris

5.0 out of 5 stars The most valuable business book I've ever read
Reichheld lays out both why loyalty matters, and why difficulty in measuring the impact of loyalty has made managers undervalue it in the past. Read more

Published on 9 Jul 1999

5.0 out of 5 stars For those who think there is no such thing as loyalty!
For those who think loyalty cannot be attained by either your customers or your employees, think again. Read more

Published on 31 Mar 1999

5.0 out of 5 stars Why Keeping Your Customers Happy Makes Good Business Sense
It is a well known fact, but almost impossible to document in most companies, that it is less expensive to keep customers than to find and acquire new ones. Read more

Published on 29 Mar 1999

5.0 out of 5 stars A compelling book, and excellently written
This book makes a really compelling case for managing under the paradigm of loyalty underlying the foundation of every business. Read more

Published on 26 Dec 1998

5.0 out of 5 stars The most valuable business book I've read in years!!!
The Loyalty Effect takes a long, detailed look at the economics of loyalty, providing concrete examples to support the conclusion that the goal of a business must be the creation... Read more

Published on 25 Nov 1998

5.0 out of 5 stars A book that all people should read.
Whatever profession or business you are involved in this book is a must read! I will own and/or run my own business one day and I promise that it will be run on all the... Read more

Published on 29 Oct 1998

5.0 out of 5 stars Excellent analytical overview to loyalty's importance
The book covers the process and hard benefits of building loyalty among 3 areas - customers, employees, and investors. Read more

Published on 22 Aug 1998

4.0 out of 5 stars One of those rare business books that presents facts
I must admit, I haven't read any other "leading loyalty" books so I don't know what I'm missing. However, I thought this book was excellent. Read more

Published on 10 Jul 1998

3.0 out of 5 stars Very insightful...yet somehow flawed
Reichheld's The Loyalty Effect is by far one of the most mediocre books on business loyalty that I have ever read. Read more

Published on 14 Jun 1998

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