The Loyalty Effect
by Frederick F. Reichheld
Reichheld's 1996 research on the economics of loyalty: customer, employee and investor retention compound into profit, with data on how much a five-point retention gain is worth. The foundation beneath NPS.
Read it if…
you want the economics of retention argued with numbers.
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Skip it if…
you want tactics.
Try instead: Stories That Stick →
Three things you will actually use
- Retention compounds.
- Loyal employees create loyal customers.
- Measure defection.
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Calculate what a five-point improvement in retention would be worth to you.
Our verdict
The economics of loyalty.
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