Product Description
This is an enhanced edition of HBR article R00410, originally published in July/August 2000. HBR OnPoint articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. In the rush to build Internet businesses, many executives mistakenly concentrate all their attention on attracting customers rather than retaining them. But chief executives at the cutting edge of e-commerce--from eBay's Meg Whitman to Vanguard's Jack Brennan--know that customer loyalty is an economic necessity: acquiring customers on the Internet is very expensive, and unless customers stick around and make lots of repeat purchases, profits will remain elusive. For the past two years, the authors have studied e-loyalty. Contrary to the popular perception that on-line customers are fickle by nature, they found that most of today's on-line consumers exhibit a clear proclivity toward loyalty, and Web technologies, if used correctly, reinforce that inherent loyalty. In this article, the authors explain the enormous advantages of retaining on-line buyers. They also describe what Grainger, Dell, America Online, and other Internet leaders are doing to gain their customers' trust and earn their loyalty. By encouraging repeat purchases among a core of profitable customers, companies can initiate a spiral of economic advantages. This loyalty effect enables them to compensate their employees more generously, provide investors with superior cash flows, and reinvest more aggressively to further enhance the value delivered to customers. ... Read more

Customer Reviews (2)

The old loyalty rules in a new context
Frederick F. Reichheld is a Director Emeritus of Bain & Company. He is author of several books and articles on loyalty-based management. Phil Schefter is a Vice President of Bain's Boston office. This article, published in Harvard Business Review's July-August 2000 issue, reports on a two year study into the strategies and practices of leading Internet companies. (Yes, of course, including Amazon.com!)

"Loyalty is still about earning the trust of the right kinds of customers ... The Web does, however, raise new questions and open new opportunities: it places the old rules in a new context." Ten years ago, Reichheld (together with Earl Sasser of Harvard Business School) analyzed the costs and revenues derived from serving customers over their entire life cycle. This research showed that in most industries the high cost of acquiring customers renders many customer relationships unprofitable during their early years. Only in later years, do relationships generate big returns. This pattern is exaggerated on the Internet, which means that the losses in the early stages of relationships are larger. However, profit growth accelerates at a faster rate in future years: loyal customers purchase more, frequently refer new customers to a supplier, and often take the function of a help desk. In order to gain the loyalty of customers, you have to gain their trust first. "Price does not rule the Web; trust does." This website serves as an example. Organizations also need to make a careful customer selection. "The way a site is designed and marketed has a large impact on the types of customers it attracts." The Internet also offers companies unprecedented opportunities for getting to know their customers in depth and for customizing offerings to meet their preferences by providing rich data (tracking of customers, purchase histories, preferences on-line vs. off-line). The authors found that the five primary determinants of loyalty are old-fashioned customer-service basics: (1) quality customer support, (2) on-time delivery, (3) compelling product presentations, (4) convenient and reasonably priced shipping and handling, and (5) clear and trustworthy privacy policies. Many companies have been tempted to split their on-line operations from their off-line operations, but this is likely to erode customer loyalty. After all, when customers do business with a company, they do not distinguish between a transnaction on the Web and one in a physical store or branch.

Great article comparing on-line loyalty with the old-fashioned off-line loyalty rules. The article is written in clear US-English and the authors use great, simple examples to describe the different on-line strategies available to organizations. The authors seem to pack a lot information into such a short article. I recommend this article to 'bricks-and-mortar' managers thinking about creating a 'virtual' extension.

The old loyalty rules in a new context
Frederick F. Reichheld is a Director Emeritus of Bain & Company. He is author of several books and articles on loyalty-based management. Phil Schefter is a Vice President of Bain's Boston office. This article, published in Harvard Business Review's July-August 2000 issue, reports on a two year study into the strategies and practices of leading Internet companies. (Yes, of course, including Amazon.com!)

"Loyalty is still about earning the trust of the right kinds of customers ... The Web does, however, raise new questions and open new opportunities: it places the old rules in a new context." Ten years ago, Reichheld (together with Earl Sasser of Harvard Business School) analyzed the costs and revenues derived from serving customers over their entire life cycle. This research showed that in most industries the high cost of acquiring customers renders many customer relationships unprofitable during their early years. Only in later years, do relationships generate big returns. This pattern is exaggerated on the Internet, which means that the losses in the early stages of relationships are larger. However, profit growth accelerates at a faster rate in future years: loyal customers purchase more, frequently refer new customers to a supplier, and often take the function of a help desk. In order to gain the loyalty of customers, you have to gain their trust first. "Price does not rule the Web; trust does." This website serves as an example. Organizations also need to make a careful customer selection. "The way a site is designed and marketed has a large impact on the types of customers it attracts." The Internet also offers companies unprecedented opportunities for getting to know their customers in depth and for customizing offerings to meet their preferences by providing rich data (tracking of customers, purchase histories, preferences on-line vs. off-line). The authors found that the five primary determinants of loyalty are old-fashioned customer-service basics: (1) quality customer support, (2) on-time delivery, (3) compelling product presentations, (4) convenient and reasonably priced shipping and handling, and (5) clear and trustworthy privacy policies. Many companies have been tempted to split their on-line operations from their off-line operations, but this is likely to erode customer loyalty. After all, when customers do business with a company, they do not distinguish between a transnaction on the Web and one in a physical store or branch.

Great article comparing on-line loyalty with the old-fashioned off-line loyalty rules. The article is written in clear US-English and the authors use great, simple examples to describe the different on-line strategies available to organizations. The authors seem to pack a lot information into such a short article. I recommend this article to 'bricks-and-mortar' managers thinking about creating a 'virtual' extension. ... Read more

Product Description
Most retailers on the Web spend more to acquire customers than they will ever get back in revenue from them. Many think that sky-high spending on marketing is necessary to stake out their share of Internet space. But is it really? How do retailers know how much to pay? Consider CDnow, which has developed a multifaceted customer-acquisition strategy that reflects a clear understanding of the economics of an on-line business. At the heart of its strategy is affiliate marketing, a concept the company pioneered. Under its BuyWeb program, anyone can put a link to CDnow on his or her Web site, and if a customer uses that link to arrive at CDnow and make a purchase, the referring site owner gets a percentage of the sale. CDnow pays no money if no sale is made, which makes the marketing program completely efficient. But CDnow didn't stop there. Being a Web store, it had complete data on the number of visitors to its site and what they bought, which it used to work out the lifetime value of an average customer. CDnow used that figure to determine how much to wager on the expensive and risky world of traditional advertising to reach a wider audience that wasn't already on-line. CDnow's experience, still a work in progress, contradicts John Wanamaker's oft-quoted lament: "I know half the money I spend on advertising is wasted, but I can never find out which half." As the CDnow example demonstrates, there is a way to find out which half really works. ... Read more

Product Description
Provides readers with a listing of some of the most useful business and industry information sources available freely on the Internet
Covers: sources of useful free business and industry information, sections on different industrial sectors, business information portals. Looks at things from the point of view of people doing business in the United Kingdom and also from the perspective of UK exporters with alphabetical listing of organisations, information providers, subject index and glossary. ... Read more

Product Description
Establishes how to find business contacts, do research, and communicate with customers as well as the Do's and Don'ts of web page design and usage. ... Read more

Customer Reviews (1)

Highly recommended, first class introductory "how to" book.
In Doing Business On The World-Wide Web, Marni Patterson shows the reader just what is needed to get started with any kind of commercial activity on the Internet. She offers a special hands-on guide to navigating the WorldWide Web; how to sell subscriptions and services on the Web; and thesecrets of thwarting hackers and cyberpunks. Doing Business On TheWorld-Wide Web explains why establishing a home page is good for anybusiness and how to gauge your own website's effectiveness as a businesstool. Doing Business On The World-Wide Web is a highly recommend, firstclass introductory "how to" manual for anyone contemplatingadding the Internet to their business or entrepreneurial activities. ... Read more

Product Description
An insider's look at security analysis and business valuation, as practiced by Wall Street, Corporate America, and international businesses

Two major market crashes, numerous financial and accounting scandals, growth in private equity and hedge funds, Sarbanes Oxley and related regulations, and international developments changed security analysis and business valuation substantially over the last fourteen years. These events necessitated a second edition of this modern classic, praised earlier by Barron's as a "welcome successor to Graham and Dodd" and used in the global CFA exam.

This authoritative book shows the rational, rigorous analysis is still the most successful way to evaluate securities. It picks up where Graham and Dodd's bestselling Security Analysis - for decades considered the definitive word on the subject - leaves off. Providing a practical viewpoint, Security Analysis on Wall Street shows how the values of common stock are really determined in today's marketplace. Incorporating dozens of real-world examples, and spotlighting many special analysis cases - including cash flow stocks, unusual industries and distressed securities - this comprehensive resources delivers all the answers to your questions about security analysis and corporate valuation on Wall Street.

The Second Edition of Security Analysis on Wall Street examines how mutual funds, private equity funds, hedge funds, institutional money managers, investment banks, business appraisers, and corporate acquirers perform their craft of security analysis and business valuation in today's highly charged environment. Completely updated to reflect the latest methodologies, this reliable resource represents the most comprehensive book written by someone who has actually worked as an investment banker, private equity executive, and international institutional investor.

• Shows the methodical process that practitioners use to value common stocks and operating companies and to make buy/sell decisions
• Discusses the impact of the two stock market crashes, the accounting and financial scandals, and the new regulations on the evaluation process
• Covers how Internet and computing power automate portions of the research and analytical effort
  
• Includes new case study examples representative of valuation issues faced daily by mutual funds, private equity funds, hedge funds, institutional investors, investment banks, business appraisers, and corporate acquirers
• Is a perfect tool for professors wishing to show their MBA students the essential tools of equity and business valuation

Security analysis and business valuation are core financial disciplines for Wall Streeters, corporate acquirers, and international investors. The Second Edition of Security Analysis on Wall Street is an important book for anyone who needs a solid grounding in these critical finance topics.

Customer Reviews (24)

A 21st century Graham and Dodd !!
Despite what you hear about "efficient markets," the methodical work of security analysis and business valuation often takes a back seat to computerized research and trading these days. This book is pretty straight forward, and lays out the valuation process for practitioners, with lots of examples, anecdotes and insights that reflect today's reality, which includes, as we all know, Wall Street crashes, missed accounting shenanigans and herd mentality. The excel models that are on the site are helpful renditions of what Wall Street really uses, not some academic formula. You can tell this author really did time on Wall Street and private equity, and I thought many professionals who touch on finance and investmentmight find the book helpful, like lawyers, accountants, consultants and even government regulators. The book says "do your homework," and that applies to me and many others in the business!!

Comments from a Recognized Master of Value Investing
As a long time practitioner of value investing, it is inspiring to see recent business school graduates and new investment analysts praise the first or second editions of the book and tell how valauble it was for them in understanding this complex area. This book is certainly a better resource that anything we had years ago at Harvard Business School.

Perhaps I am a good reviewing source from the investment community, as over the past five-year period 2005 to 2009, I ranked as the number #1 performing separate account value manager in the country, and this ranking includes all market cap categories (per the Morningstar rankings).
Both the first and second editions of the book sit on the top shelf in my office,and I probably have referred back to the first edition more than any other book that I have.

In my dealings with Mr. Hooke on investment matters over the years, he has proven himself to be one of the smartest people I know in the investment profession.
Douglas R. Cannon, CFA
President and Chief Investment Officer
Texas First Investment Management Company

A Must-Read for Investors, Analysts, and Business Executives
After working as a writer in the investment field for more than 10 years, I found myself using terms such as "discounted cash flow" without thorough understanding of what they really mean or how business valuation is done.

Now, after reading Security Analysis and Business Evaluation on Wall Street, I feel very well equipped to delve into the value of an investment and to better understand the analysis done by others.

The author clearly has thorough knowledge of a professional with many years of experience in investment banking, but he explains the concepts clearly so that any investor or business student can understand and use them.

Plenty of case histories explore specific companies and industries. It also includes a timely and cogent analysis of the 2008 crash--a fiasco largely caused by phony analysis of risk and value.

The book also includes access to a website with excellent working spreadsheets for Discounted Cash Flow and other valuation models.They alone are more than worth the price of the book.They could save an analyst or investor countless hours--plus they provide a great hands-on feel for the concepts so aptly illustrated in the book.

Solid Financial Analysis From A Wall Street Veteran
Hooke's work is lucid and illuminating.The relative value techniques make complicated analysis simpler.Perfect stuff for an interested lay person though I can't swear that it is exhaustive for a professional.

2nd edition
I just wanted to add several comments. Overall I am very familiar with the first edition of this book, because I had to use it as a major source of guidelines at my previous job. The book was a great source! I had some background in structured finance and investments analytics, but I had zero experience in equity valuation before. In some 40-60 hours I was able to learn a lot about firm valuation (especially useful material - dividend discount model, market comparables, and free cash flow models) so that I could start preparing my first equity valuation reports. The second edition is an extended version, which still has all the advantages of the first edition: straightforward approach to valuation, a lot of examples, as little cumbersome math as possible. It is definitely a must read for any private investor and novice financial analyst. By the way, some sections of this book (industry analysis) are still included in the CFA curriculum (level 2, Equity valuation). ... Read more

Product Description
This text is a guide to marketing on the Internet. It covers topics such as how to use the Internet in a marketing and advertising campaign, and how to negotiate your way round the various rules gonverning marketing and advertising on the Net, without getting in trouble. ... Read more

Customer Reviews (1)

Lots of information, but not enough on marketing
The book on a whole was useful, but if you were looking for a book specifically on internet marketing, you might be disapointed.The book starts from the very beginning (e.g.how to connect to the internet)Ifound it to be too basic at times.I bought the book hoping to find outmore about different marketing trends and strategies.It does touch onmost areas, but the book itself was too basic.I did not get the detailthat I wanted.The book did not cover specific trends such as one-to-onemarketing or Permission Marketing.The concepts were mentioned, but theterms were not used.This might be because the book was published inLondon.On the whole I was disapointed as I did not get the specificinformtion that I needed.Instead I got the bigger picture.For abeginner, this book is perfect. ... Read more

Product Description
This report was created for global strategic planners who cannot be content with traditional methods of segmenting world markets. With the advent of a "borderless world", cities become a more important criteria in prioritizing markets, as opposed to regions, continents, or countries. This report covers the top 2000 cities in over 200 countries. It does so by reporting the estimated market size (in terms of latent demand) for each major city of the world. It then ranks these cities and reports them in terms of their size as a percent of the country where they are located, their geographic region (e.g. Africa, Asia, Europe, Middle East, North America, Latin America), and the total world market.

In performing various economic analyses for its clients, I have been occasionally asked to investigate the market potential for various products and services across cities. The purpose of the studies is to understand the density of demand within a country and the extent to which a city might be used as a point of distribution within its region. From an economic perspective, however, a city does not represent a population within rigid geographical boundaries. To an economist or strategic planner, a city represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another.

In what follows, I summarize the economic potential for the world's major cities for "web-fed lithographic printing of business forms excluding manifold, financial, legal, and loose-leaf forms and blankbooks" for the year 2009. The goal of this report is to report my findings on the real economic potential, or what an economist calls the latent demand, represented by a city when defined as an area of dominant influence. The reader needs to realize that latent demand may or may not represent real sales. ... Read more

Product Description
Welcome, recruits, to the ultimate online challenge!

You’re in basic training for the battle of your life. Your mission is to keep your company alive and to help it move forward quickly in unfamiliar territory.You must master the tools and techniques needed to serve customers and beat the competition in the strange and potentially hostile online business environment.You’re a soldier——but you’re not in the army.You need Web Business Boot camp.

This no-nonsense, tip-driven guide targets key activities that anyone can perform to truly achieve online business success.Internet marketing pioneer Richard Seltzer gets managers out of the boardroom and into the trenches for crucial hands-on Web experience ——which provides insight into how to win on the e-commerce battlefield.He also helps entrepreneurs develop a viable business model without depending on high-priced design services and consultants, as well as gives tech-oriented professionals a broad business perspective for tackling new online responsibilities.

Tired of paying top dollar for "experts" to manage your Internet initiatives and receiving little in return?Seltzer drills you in the skills you’ll need to single-handedly:

• Identify the online opportunities that will help you grow your business
• Set goals, coordinate activities, and monitor progress effectively
• Attract targeted traffic to a Web site at minimal cost
• Stay afloat during market downturns and without venture capital
• Get the confidence to tell technical experts what you need and why

If you want business results from your Web site without breaking the bank, all you need is a computer, an Internet connection, and Web Business Boot camp. ... Read more

Product Description
Proceedings of the ER 2000 Workshops on Conceptual Modeling and Approaches for E-Business and the World Wide Web and Conceptual Modeling, held in Salt Lake City, Utah, October 9-12, 2000. Nine total papers are organized into three sections covering Web application modeling and managing and querying Web data and metadata. Softcover. ... Read more

Product Description
This handy resource evolved out of a classroom environment reflecting the realities of the information age. Thunderbird students, being well versed in international business, culture and language, gathered global business information on the World Wide Web for assigned regions of the world. The text is divided into chapters organized around general regions of the globe. Each of these major groupings are further divided into areas and countries most beneficial to today's business professional. All chapters are preceded by a concise introduction to the region and sometimes a country which provides insight into its culture, business practices, political systems and risk, and social aspects. ... Read more

Customer Reviews (1)

An enormous, albeit dated list of interesting business sites
Compiled at Thunderbird, the American Graduate School of International Management, this class project provides links to an enormous amount of information. And, given the current business environment, even relatively small, seemingly local businesses have global requirements. This list of web pages will allow you to surf locations in the country of interest and get information that in many cases is simply unavailable elsewhere. For example: http://tjev.tel.etf.hr/hrvatska/ HR.html is the home page of the republic of Croatia, and http://www.Afrique.corn/ Africaonline/Copyright.html is billed as Africa' s gateway to the Internet.
Most addresses also contain pointers to additional web sites in that country and the data ranges from investment opportunities to people just interested in communicating with others.
If you are interested in the latest information about a country produced by those in that country, or just want to have an international web pal, then this is the place to start. It is an extremely inexpensive and effective way to learn about the world, which in many cases is now only a mouse click away.

Published in Journal of Recreational Mathematics, reprinted with permission. ... Read more