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

In this reprint of a 1996 work, published with a new preface, business strategy consultant Reichheld outlines an approach to doing business that he calls loyalty-based management. Stressing the importance of building a loyal customer base, he argues that even a small improvement in customer retention can double a company's profits. He also shows the connections between customer, employee, and investor loyalty. He goes on to describe in detail the changes in compensation, organization, and strategy necessary for companies to build relationships worthy of loyalty. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Frederick F. Reichheld is a director of Bain & Company, a leading strategy consulting firm headquartered in Boston with twenty-three offices worldwide. He is the leader of the firm's worldwide Loyalty Practice, and his pioneering work in the area of customer, employee, and investor retention has quantified the linkage between loyalty and profits. This work forms the conceptual foundation for the practice, which helps clients achieve superior results through improvements in customer, employee, and investor selection and retention. Reichheld's views have been quoted in Business Week and Fortune, and his recent publications include articles in Harvard Business Review and The Wall Street Journal. He is a frequent speaker to major business forums and groups of senior executives.