Reicheld on Loyalty

Another gem from the ecsw newsletter. Fred Reicheld on loyalty:

There’s a paradox at the core of loyalty. Business is the pursuit of self-interest. Loyalty implies self-sacrifice. So business loyalty is an oxymoron. A customer is not going to be loyal to most organisations because most organisations have their own interest not the customer’s, at heart. When the Harvard Business Review was choosing a cartoon to illustrate a paper of mine on loyalty, they chose a dog.

2 thoughts on “Reicheld on Loyalty

  1. Chris Pearse

    My recent experiences of loyalty don’t appear to involve self-sacrifice. They seem to be more about foregoing the lower for the higher (is this sublimation?). So that when Allders willingly refunds me

    Reply
  2. Luke

    Loyalty implies an awareness of the many and varied values of building rich and nourishing relationships, filled with reliability, honesty and integrity. Nowhere does loyalty ask for sacrifice, not of either party in the relationship. Deals are struck when two (or more) parties can agree that the deal is mutually rewarding, win-win.

    To suggest that loyalty is akin to self-sacrifice is absurd. If a vendor has provided me with quality goods or services, that history and reputation are part of why I would consider him again. Self-Sacrifice? No. I’d call it rational self-interest.

    Remember, the pain of poor quality lasts long after the pleasure of low price has been forgotten.

    Reply

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