Loyalty can be earned only when leaders put the welfare of their customers and partners ahead of their own self-serving interests. Herein lies the paradox of loyalty. If it is really about self-sacrifice - that is, about putting principles and relationships ahead of immediate personal financial gain - what relevance can it possibly hold for business, which is in large part driven by self-interest? There is indeed a high road in business, and it is the only road to lasting success. This section brings together three components of our loyalty work and research - the six principles of loyalty, real case studies of companies that embody these principles to earn outstanding financial results, and examples of our work at Bain in related areas, such as growth strategy and customer relationship management. A 5% increase in customer retention yields a 75% increase in customer net present value. Six Principles of Loyalty Play to win/win: Profiting at the expense of partners is a short cut to a dead end. Be picky: Membership is a privilege. Keep it simple: Complexity is the enemy of speed and responsiveness. Reward the right results: Worthy partners deserve worthy goals. Listen hard, talk straight: Long-term relationships require honest, two-way communication and learning. Preach what you practice: Actions often speak louder than words, but together they are unbeatable.
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