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Brandirect Home > Our Voice > Archived Articles > Loyalty Can Do All That? - 2003-08-06

Loyalty Can Do All That? - 2003-08-06

"Loyalty is the primary ingredient in eBay's secret sauce."

- Meg Whitman, eBay

Enterprise Rent-A-Car is not alone at the top. Other companies like Southwest Airlines, MBNA, the New York Times, State Farm Insurance and Dell Computer and eBay all share similar paths to success. A study of these companies leads to one common characteristic that seems to be their primary driver of good fortune: loyalty.

Aside from being low cost providers in their respective industries, and profit leaders in their chosen niches, every one of these companies is fanatically focused on loyalty. They see loyalty as something to be encouraged, not something to be enforced.

These industry leaders understand human nature. They understand that the way to earn loyalty is to deliver value that's worth the price. When people remain loyal, costs go down and profits go up.

To measure loyalty, these companies pay close attention to employee retention and customer retention rates. Measuring customer loyalty is important because loyalty is the key to predictable profits. If you don't understand and can't measure the things that inspire customer loyalty, you won't be able to adjust your services to better serve their needs. Every one of these successful companies has leaders who believe that taking care of people is the best (and only) way to build a truly profitable and sustainable business.

Brandirect is driven by this philosophy. We look forward to helping you make the Golden Rule a bigger part of your business.