Which company will have the best financial outcome according to Reichheld?
A)those with loyal customers
B)those with lowest unit cost
C)those with highest market share
D)those with highest satisfaction levels
E)those with best economies of scale

Question

Quizplus · Accepted Answer

According to Reichheld's theory of the "loyalty effect," companies with loyal customers outperform their competitors in terms of financial outcomes. Loyal customers are less likely to switch to competitors, resulting in increased revenue from repeat purchases and decreased costs associated with acquiring new customers. Therefore, the company with the best financial outcome would be the one with loyal customers.

Which Company Will Have the Best Financial Outcome According to Reichheld