Customer Loyalty and Retention
One of the best known, current authors on the subject of Customer Loyalty and Customer Retention is Frederick Reichheld. He has written a number of articles and a few (very good) books on the subject.
A "page" from his book "Loyalty Rules" that looks at the value of customer loyalty tells us that a "A 5% increase in customer retention yields a 75% increase in customer net present value". He also discusses his six principles of loyalty.
Take a look at some of the publications (GOOGLE them) and let us know which one you like the best.
I like his book "The Ultimate Question".
Gene A. Wright
posted by Gene A. Wright @ 1:51 PM
1 Comments:
This hits home in today’s business environment especially for me dealing with Falk being sold to Rexnord. Falk was built on reputation for severing the customer and doing what’s best for them be providing superior power transmission products. Over the years, Falk has built loyalty with their top customers by living these 6 principles and by providing reliable products and services. Ever since we have been purchased by Rexnord, it feels like the leaders of the organization are now in it for their own self-interests. I feel that if this trend continues we will loose the loyalty of our long time customers and their business.
I think Frederick Reichheld’s 6 principles transcends business though and apply to every day life in all of our relationships. I’m interested in his book “The Loyalty Effect”. I read some excerpts online and think it looks real good. I think I might buy it. It is available from Amazon for only $11.53.
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