Bain Book

The Loyalty Effect

The Loyalty Effect

The Hidden Force Behind Growth, Profits, and Lasting Value

By Fred Reichheld

The Loyalty Effect

Much has changed since The Loyalty Effect was originally published in 1996. Digital has revolutionized communications and dramatically expanded the potential for deeper relationships with customers and suppliers. At the same time, it has challenged the very relevance of lasting relationships. So what’s the chance that Reichheld's framework of loyalty economics is still valid for competing in today’s world?

As it turns out, the framework detailed in The Loyalty Effect not only has withstood these challenges, but its relevance has been magnified. Advanced analytics has uncovered the powerful loyalty economics at work in more and more industries. The economic framework developed for this book has become the standard for an army of business analysts and investors engaged in the evaluation of digital business models.

"The Loyalty Effect absolutely nails the essence of what it takes to be customer driven."

Scott Cook, Cofounder, Intuit, Inc.

Any leader who gives up on loyalty is flirting with career suicide. The Loyalty Effect shows why companies that ignore loyalty 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. 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.

About the Author

About the Author

Fred Reichheld

Fred Reichheld is a Bain Fellow and founder of the firm's Loyalty practice. He is the creator of the Net Promoter® system of management, and his work has quantified the link between loyalty and profits. Fred is the best-selling author of The Ultimate Question 2.0, The Ultimate Question and Loyalty Rules!

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What Others Are Saying

What Others Are Saying

Reichheld has delivered a key which can unlock the elusive feel-good factor. With sound advice on every page, supported by powerful argument, he has written what deserves to become a business classic.

Richard Donkin, Financial Times

The Loyalty Effect provides clear evidence that good 'old-fashioned' principles of management still drive superior performance

Leonard A. Schlesinger, Baker Foundation Professor, Harvard Business School

Reichheld’s work on the economics and impact of loyalty is absolutely fundamental to today’s business leaders.

Robert E. Hallagan, former President & CEO, Heidrick & Struggles, Inc.

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