As I have already introduced and recommended Jeffrey Gitomer's book as the title of this edition, I will speak to another long-standing member of my business bookshelf. "The Loyalty Effect" by Frederick F. Reichheld directly speaks to the idea of what loyalty really is. What does it mean to businesses and how do we effectively measure it.  I have heard more times than I can recall loyalty is dead in the business word.  Every time I hear it, I vehemently argue against it.  While I completely understand where the sentiment comes from, I believe we need to better understand what it is to understand that as a business multiplier, it is not only alive and well, but the key ingredient to business success in today's environment.
 
What I especially like about The Loyalty Effect is the discussion around effectively measuring loyalty.  While the author speaks to metrics throughout the book, it is in Chapter 8, aptly titled "The Right Measures" that drives home the point of properly measuring customer value.  More importantly, the discussion around the relationship between cost, price and customer value makes a compelling case for taking a long term view of customers rather than getting caught in the short term mindset that may drive loyalty defeating decisions.  This chapter also speaks to the "Satisfaction Trap" which lulls leaders into thinking customers are inherently loyal if they are satisfied with their experience.  As Dave Illingworth, the first General Manager at Lexus says in this chapter "The only meaningful measure of satisfaction in this industry is repurchase loyalty". 

Enjoy the Book!