In today's business environment, having an advantage over rival companies can make or break you. Loyalty is that advantage that will make your company profit and customers return. Frederick Reichheld's theory, The Loyalty Effect, is one of the most useful and necessary business strategies. Without loyal employees within a company, your company is doomed to fail. I consider myself a very loyal person, not only in my work, but in all aspects of life. I'm a manager at the Maui Nix Surf Shop and every part of the job is based on loyalty, whether it's opening the shop on time, making cash deposits or keeping the job supervising the shop. I plan to become a software engineer and hopefully work for a company like Google or Apple. I love their business strategy and how they allow “free time” in the workplace. Loyalty is not only given by employees to the company, the company must also treat employees fairly and well enough to make them want to work above and beyond what is expected of them. Frederick Reichheld is a business theorist and director of Bain & Company. In the mid-1980s, a group of colleagues, including Frederick Reichheld, were grappling with the conundrums of growth and profit. The usual factors failed to explain the results shown in the graphs. They noticed that companies that had higher levels of customer loyalty also had consistently higher profits. This is where Frederick Reichheld developed The Loyalty Effect. On average, US companies lose half their customers in five years, half their employees in four years, and half their investors in less than a year (Reichheld). By having loyal employees and loyal investors, you can make more efficient decisions with the people you know, making your company...... the focus of the paper ......use of the face-to-face contact I will have with customers. According to Entrepreneur.com, keeping it personal with customers and remembering special occasions are key to customer loyalty. Frederick Reichheld's theory of the loyalty effect taught me the essential strategies for becoming a successful and profitable business. Investors, owners, customers and loyal employees come together to create a loyal and successful business. As a software engineer, I would be a loyal employee to help my company move forward and progress. Working in the bar, I would be at the owner's level and would be expected to treat my employees and customers with fairness and respect. Without loyal and repeat customers, my business would surely fail. Whether I work as a software engineer or own a bar, Reichheld's loyalty theory will help me in all aspects of both jobs..