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Article

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

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

The hidden force behind growth, profits and loyalty.

  • 12.01.1996
  • min read

Article

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

Reichheld lays out a new "economics of loyalty" that provides a framework where the "soft" elements of business—loyalty and learning—can be effectively linked to the hard science of cash flows and cost/benefit analysis. In many industries, loyalty explains the differences in profitability among competitors more effectively than scale, market share, unit costs, or most other factors usually associated with competitive advantage. Find out more at www.loyaltyeffect.com.

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