Essay --

In today’s business setting, having an edge against rival companies can make or break you. Loyalty is that edge that will have your company profiting and the customers returning. Frederick Reichheld’s theory, The Loyalty Effect, is one of the most useful and needed business strategies. Without loyal employees within a company, your company is destined to fail. I consider myself a very loyal person, not only at my job, but in all aspects of life. I am a manager at Maui Nix Surf Shop and every part of the job is based on loyalty such as opening the store on time, cash deposits, or staying on task with overseeing the store. I plan on becoming a computer engineer and hopefully working for a company like Google or Apple. I love their business strategy and how they allow â€Å"free time† in the workplace. Loyalty is not just given from the employees to the company, the company must also treat the employees fairly and well enough that they want to perform above and bey ond of what is expected from them. Frederick Reichheld is a business theorist and a director at Bain & Company. In the mid-1980’s, a group of colleagues including Frederick Reichheld were struggling with growth-and–profit riddles. The usual factors were failing to explain the results shown in the graphs. They noticed that firms that had superior levels of customer loyalty also had consistently higher profits. This is where Frederick Reichheld developed The Loyalty Effect. On average, U.S. corporations lose half of their customers in five years, half of their employees in four years, and half of their investors in less than one year (Reichheld). By having loyal employees and loyal investors, you can make more efficient decisions with people you know, in turn, making your company... ...use of the face-to-face contact I will have with the customers. According to Entrepreneur.com, keeping it personal with the customers and remembering special occasions are key to building customer loyalty. Frederick Reichheld’s theory of The Loyalty Effect has taught me essential strategies to become a profitable and successful business. Loyal investors, owners, customers, and employees all come together to make a loyal, successful business. As a computer engineer, I would be a loyal employee to help my company move forward and progress. Working in the cafà ©, I would be on the owner level and have to treat my employees and customers with fairness and respect. Without the loyal returning customers, my business would most certainly fail. Whether I am working as a computer engineer or owning a cafà ©, Reichheld’s theory of loyalty will help an all aspects of either job.