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Loyalty Rules!



Loyalty Rules! How Today's Leaders Build Lasting Relationships
written by Frederick Reichheld, Harvard Business School Press, 2001

The Author
Fred Reichheld is a Bain Fellow and Founder of Bain's Loyalty practice. He is the author of The Loyalty Effectas well as of influential articles in Harvard Business Review and the Wall Street Journal. His work has been featured in leading publications including the New York Times, Business Week, the Financial Times, and The Economist.
Contact the Author
Send an email to the webmaster to request an interview with the author or to contact the author for a speaking engagement.

The Concept
Fewer than half of today’s employees believe that their companies deserve their loyalty. Web-empowered customers now defect more easily and more quickly than ever. Has loyalty become an outdated notion in today's marketplace? Providing tools for implementing the timeless principles of loyalty in a volatile economy, Loyalty Rules! is a practical guidebook for taking the high road in business - the only road that leads to lasting success.

Frederick Reichheld, author of the best-selling book The Loyalty Effect, argues that loyalty is still the fuel that drives financial success - even, and perhaps especially, in today's volatile, high-speed economy - but that most organizations are running on empty. Why? Because leaders too often confuse profits with purpose, taking the low road to short-term gains at the expense of employees, customers, and ultimately, investors. In a business environment that thrives on networks of mutually beneficial relationships, says Reichheld, it is the ability to build strong bonds of loyalty - not short-term profits - that has become the "acid test" of leadership.

Loyalty Leaders
Featured companies in Loyalty Rules!:
Harley-Davidson, Enterprise Rent-A-Car, The Vanguard Group, Southwest Airlines, Dell Computer, Cisco Systems, Northwestern Mutual, MBNA, Chick-fil-A, SAS, USAA, The New York Times, U.S. Marine Corps, Intuit

Featured companies in The Loyalty Effect:
MBNA, State Farm, Chick-Fil-A, Leo Burnett, Johnson & Higgins, A.G. Edwards, Lexus/Toyota, Dere & Company, Northwestern Mutual, Bain Capital, Accuride, ABRY, American Express, Sewell Cadillac

Six Principles of Loyalty
Reichheld reveals six bedrock principles of loyalty upon which leaders build enduring enterprises. Underscoring that success requires both understanding and measuring loyalty. He couples each principle with straightforward actions that drive measurement systems, compensation, organization, and strategy. Vivid case studies illustrate the consequences of building or ignoring loyalty, and a rigorous Loyalty Acid Test enables leaders to benchmark their loyalty practices against competitors.

The Loyalty Acid Test
The Loyalty Acid Test Surveys provide executives with a reliable tool to monitor and diagnose the health of key relationships. Bain has administered these surveys to a sample of customers and employees from loyalty leader companies highlighted in the book, including Vanguard, Enterprise Rent-A-Car, Northwestern Mutual, Intuit, Harley-Davidson and USAA.

Companies interested in more than summary results have an opportunity to analyze their own results on individual Loyalty Acid Test questions. Download the surveys - including adaptations for business customers, dealers, suppliers, and investors - freely with no need for additional approvals from the author or publisher.

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