Friday, May 18, 2007

Boing Boing: HOWTO Beat the stock market: buy customer service

Cory Doctorow highlights a link that concludes one can profit in the stock market by investing in companies that get 80% or above on a customer satisfaction survey. My initial thought was that this was PROOF that customer service pays off!! A point that needs way more attention!
From Boing Boing:
A study in the Journal of Marketing concludes that you can beat the market consistently by buying stock in companies with high customer satisfaction ratings:

"Using a back-tested paper portfolio and an actual case, the study's authors found that companies at the top 20% of the the American Customer Satisfaction Index (ACSI) outperformed the the stock market, generating a 40% return. Over time, the portfolio outperformed the Dow Jones Industrial Average by 93%, the S&P 500 by 201%, and NASDAQ by 335%. "

Boing Boing: HOWTO Beat the stock market: buy customer service
[picture credit]


  1. Anonymous5:52 PM

    This is only a retrospective study. At the very least, unless you can predict which companies will have the highest customer satisfaction rating IN THE FUTURE, this investment plan won't work.

  2. The normal caveat applies "This is based on past information, no predictions based on future earnings is implied" or something like that :)


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