Loyalty Rule

Author: Frederick F. Reichheld
Publisher:
Publish Date: 2002-06-01
Features: Today, companies in developed countries lose an average of half their customers every five years, and more than half of employees believe their company is not worth their loyalty. In such volatile and fast-paced market environments, it is easier than ever for customers and employees to "switch sides," so is loyalty becoming a thing of the past? Frederick F. Reichheld, the author of the bestseller "The Loyalty Effect," argues that loyalty is the fuel needed for the economic train to run smoothly and rapidly, especially in the new economy. Many "head-hunting" company leaders often confuse profit with the purpose of the company, taking short-sighted approaches to sacrifice the interests of employees, customers, and investors for immediate gains. Reichheld points out that in today's mutually beneficial business environment, the "harsh test" leaders face is not whether they can achieve short-term profits, but rather their ability to build strong and lasting loyalty relationships. The author conducted extensive research into well-known companies such as Cisco, Dell, and Intuit. Based on numerous lively case studies, he reveals the different outcomes of building or neglecting loyalty relationships and deduces the six fundamental principles successful leaders need for long-term growth. He also combines each principle with specific practices, which help drive the development of evaluation systems, compensation mechanisms, and company strategies. "The Loyalty Rules" provides practical operational tools for companies to implement the permanent principles of loyalty, laying the foundation for sustainable development.