From: How To Beat The Stock Market: Buy Companies With High Customer Satisfaction Scores:

Using a back-tested paper portfolio and an actual case, the authors of a study published in the Journal of Marketing found that companies at the top 20% of the the American Customer Satisfaction Index (ACSI) greatly outperformed the the stock market, generating a 40% return.

[...]

“Cost-cutting” and “profit-enhancing” measures like outsourcing all your tech support to India, creating a byzantine apparatus for warranty repairs, and using rebate systems designed to trip up your customers will only hurt you in the long run. — BEN POPKEN

Well duh.

May 18th, 2007 by Jeremy Sisson | Trackback