Fred Reichheld

speaker

474 appearances 1 recordings 1 series first heard Jun 2026 last heard 19 Jun

Fred Reichheld’s voice in public audio — every appearance, attributed to the second.

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Recordings per month over the last 12 months — 1 in all, peaking in Jun 2026 with 1.

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Young and Profiting (YAP) with Hala Taha: Entrepreneurship and Self-Improvement Podcast · Fred Reichheld: How to Build a Business Customers Can't Stop Recommending | Entrepreneurship | YAPClassic · 19 Jun 2026 podcast

If your customer is not buying more, coming back for more and bringing their friends, there's something wrong that needs attention.

But if they are growing 150% a year, don't screw up the decision making by kowtowing to the accounting mindset.

Now, of course, you have to have cash flow to keep the business healthy.

And so finance is vital.

It's not the purpose.

And in too many businesses, finance, because we can measure it more rigorously and report it, and the regulatory system sort of gives it an edge, we give it way too much power in our thought process.

There's two components to earn growth.

The first one is the back for more, which encapsulates both retention, you know, because if somebody diminishes their business or defects, that nets out against it.

And customers that expand their purchases and netting those things, there is an existing accounting metric called net revenue retention.

That's the biggest component for most companies.

And then you add the revenue from customers who came primarily as a result of referrals from existing customers.

That set of revenue, that's earned growth.

And if you're well above 100%, that means you've got the flywheel spinning in the right direction.

The very best customer companies I've found have 70, 80, even 90 percent of their new customers are coming on referral primarily.

That doesn't mean they don't advertise at all.

There's a lot of reinforcing publicity and advertising.

But yes, your customer was the primary reason you came aboard.

If they say referral from a friend.

Or if you have a tech platform that actually it's clear, our friend referred them and keeps track of it.

Those are the best kind of business you can possibly have.

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