By Frederick F. Reichheld, Scott D. Cook
This number of articles and interviews from the "Harvard enterprise Review", can help enterprise leaders comprehend, combine and deal with a number of the dimensions of loyalty of their compaines. The e-book additionally gains contributions from authors comparable to Hamel, Prahalad, Porter, convenient and Drucker. It demonstrates a necessity for realizing loyalty from consumers, traders, staff and strategists.
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Extra resources for The quest for loyalty: creating value through partnership
One of these traps is mistakenly to see a loyal customer in the customer who does not have the option of defectingfor reasons ranging from lack of competition to, say, a rewards program that holds the customer captive. Another is the common failure to distinguish between the right customers and the wrong ones. Not all customers are created equal, but many companies give equal weight to first-class and third-rate customers in allocating resources to counteract defections, and some overzealous customer-recovery units spend money to save unprofitable customers or customers that actually cost the company money.
Over the next few years, we produced a string of improvements and new products, including tax software, that won us a strong position in a variety of personal finance markets. Then, in 1992, we introduced QuickBooks, a software package for small business accounting that we had spent several years developing. We thought QuickBooks was a decided improvement on competing systems because we'd made it so much easier to understand and use, but all the same we were entering what was widely considered a mature market, and we had a lot riding on the outcome.
Reichheld, Frederick F. II. Series: Harvard business review book series. 8'12dc20 96-22727 CIP Page v CONTENTS Foreword Scott D. Cook xi Introduction Frederick F. Reichheld xv Part I: Setting the Stage 1. Loyalty-Based Management Frederick F. Reichheld The economic benefits of high customer loyalty are measurable. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring new customers goes down. This sets in motion a chain of events that eventually leaves competitors with less desirable customers and less talented employees.