Fred Reichheld
Encyclopedia
Frederick F. Reichheld is a United States business author and business strategist best known for his research and writing on the loyalty business model
and Loyalty Marketing
. His books include The Loyalty Effect
(1996), Loyalty Rules! (2001), and The Ultimate Question: Driving Good Profits and True Growth (2006). He has also authored articles for business publications such as Harvard Business Review
. He speaks on loyalty and other business topics at management conferences and similar events.
Reichheld is a Fellow of the management consultancy Bain & Company
, where he has worked since 1977. In 2003, Consulting Magazine named him one of the world's top 25 consultants. The Economist
magazine called him "the high priest of the loyalty cult" in 2001.
His most recent book, The Ultimate Question, focuses on Net Promoter Score
(NPS), a concept he developed based on his research in measuring customer satisfaction
, customer retention
and its link to revenue growth and profitability
. This metric serves as an indicator of the loyalty and advocacy customers show for a company. Harvard Business Review Press will publish a new, updated version of this book, "The Ultimate Question 2.0," in September 2011, written with coauthor and long time collaborator, Rob Markey, a Partner at Bain & Company.
Reichheld holds a B.A. from Harvard College
(1974) and an MBA from Harvard Business School
(1978).
Loyalty business model
The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed...
and Loyalty Marketing
Loyalty marketing
Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on growing and retaining existing customers through incentives...
. His books include The Loyalty Effect
Loyalty Effect
The Loyalty Effect is a 1996 book by Fred Reichheld of the consulting firm Bain & Company, and the book's title is also sometimes used to refer to the broader loyalty business model as a whole...
(1996), Loyalty Rules! (2001), and The Ultimate Question: Driving Good Profits and True Growth (2006). He has also authored articles for business publications such as Harvard Business Review
Harvard Business Review
Harvard Business Review is a general management magazine published since 1922 by Harvard Business School Publishing, owned by the Harvard Business School. A monthly research-based magazine written for business practitioners, it claims a high ranking business readership among academics, executives,...
. He speaks on loyalty and other business topics at management conferences and similar events.
Reichheld is a Fellow of the management consultancy Bain & Company
Bain & Company
Bain & Company is a global management consulting firm headquartered in Boston, Massachusetts. Bain is considered one of the most prestigious consulting firms in the world, with 47 offices in 30 countries and over 5,500 professionals on staff globally...
, where he has worked since 1977. In 2003, Consulting Magazine named him one of the world's top 25 consultants. The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
magazine called him "the high priest of the loyalty cult" in 2001.
His most recent book, The Ultimate Question, focuses on Net Promoter Score
Net promoter score
Net Promoter Score is a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research.-Overview:...
(NPS), a concept he developed based on his research in measuring customer satisfaction
Customer satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation...
, customer retention
Customer retention
Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organisation has with a customer and continues throughout the entire lifetime of a relationship...
and its link to revenue growth and profitability
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
. This metric serves as an indicator of the loyalty and advocacy customers show for a company. Harvard Business Review Press will publish a new, updated version of this book, "The Ultimate Question 2.0," in September 2011, written with coauthor and long time collaborator, Rob Markey, a Partner at Bain & Company.
Reichheld holds a B.A. from Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
(1974) and an MBA from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
(1978).