Some of the most popular modern marketing myths come from the writing of Frederick Reichheld. In particular a famous article with Earl Sasser where, on the very first page they write:
Companies can boost profits by almost 100% by retaining just 5% more of their customers.
This has been quoted extensively. Even academics, who should know better, quote it in textbooks and in articles in leading scholarly journals.
And yet it is a grossly (and rather obviously) misleading line.
To read the full article go to the University site – click here.