Build to last using customer loyalty.
9/10/2001
As Reichheld describes it, business models that once thrived for decades are increasingly short-lived. Faster knowledge transfer allows company strategies to be quickly copied and surpassed. To stick around, companies need not just a winning game plan, but strongly-developed customer relationships. This relationship may be the only thing that keeps a consumer from jumping to the next glitzy or well-marketed company. To demonstrate the importance of what Reichheld coins "The Six Principles of Loyalty," he uses examples from major companies including Harley-Davidson, The Vanguard Group, and The New York Times Company, who have put these principles to the test. Yet his most timely advice comes in the "Play to Win/Win" chapter, where he warns: "Be Wary of Wall Street Wisdom."