Stock Price tied to Customer Satisfaction

[The Gopher]

http://consumerist.com/consumer/personal-f...ores-261282.php

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.

From 1996-2003, the portfolio outperformed the Dow Jones Industrial Average by 93%, the S&P 500 by 201%, and NASDAQ by 335%.

Past performance doesn't indicate future results. ACSI only goes back to 1994. However, these startling findings help vindicate one of our central claims: investing in customer service and satisfaction is good for your bottom line.


Contrast this to the Michigan study released recently and UAUA is on it's way to a $20 stock.

 

[rotate]

Gopher,

The entire industry is a customer satisfaction nightmare and is racing to the bottom to see who can charge the least for the least satisfaction. Customers are happier dealing with the IRS than flying on an airliner!

They don't call air travel a commodity for nothin'. Butts in seats, butts in seats...

Starbucks successfully differentiated coffee and charges a higher price than people were accustomed to paying for coffee before. Why can't someone successfully differentiate air travel to charge a higher fare?

Oh, I know. I'm just an idiot who doesn't "understand" the peculiarities of the airline business like the oligarchs in Ft. Worth, Chicago, Atlanta, Minneapolis, New York, Denver and Phoenix. If these oligarchs are so smart, why do they repreatedly fail to satisfy their customers, shareholders and employees?

Please notice I left out Houston and Dallas, because they seem to have some sort of clue.

 

[NewHampshire Black Bears]

Gopher,

The entire industry is a customer satisfaction nightmare and is racing to the bottom to see who can charge the least for the least satisfaction. Customers are happier dealing with the IRS than flying on an airliner!

They don't call air travel a commodity for nothin'. Butts in seats, butts in seats...

Starbucks successfully differentiated coffee and charges a higher price than people were accustomed to paying for coffee before. Why can't someone successfully differentiate air travel to charge a higher fare?

Oh, I know. I'm just an idiot who doesn't "understand" the peculiarities of the airline business like the oligarchs in Ft. Worth, Chicago, Atlanta, Minneapolis, New York, Denver and Phoenix. If these oligarchs are so smart, why do they repreatedly fail to satisfy their customers, shareholders and employees?

Please notice I left out Houston and Dallas, because they seem to have some sort of clue.

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Rotate,

I'll agree with you about CO, BUT ...give me a break, about WN.

There is NOTHING pleasant about flying a 2-3-4-5-6 hrs trip on WN.(with the exception of leather seats)

I hope to HEL* you hav'nt used the following to expound on the WN experience.

Cattle charge boarding.
NO First Class.
Coach seats(like all the other carriers)guarenteed to give your leg(s)..DVT.
Peanuts....Big F'n Deal.
Trailer park seat mates
And "CORN PONE" F/a's Ad Nauseum !!!!!!!

NH/BB's

 

[rotate]

///////////////////////////////////////////////////////////

Rotate,

I'll agree with you about CO, BUT ...give me a break, about WN.

There is NOTHING pleasant about flying a 2-3-4-5-6 hrs trip on WN.(with the exception of leather seats)

I hope to HEL* you hav'nt used the following to expound on the WN experience.

Cattle charge boarding.
NO First Class.
Coach seats(like all the other carriers)guarenteed to give your leg(s)..DVT.
Peanuts....Big F'n Deal.
Trailer park seat mates
And "CORN PONE" F/a's Ad Nauseum !!!!!!!

NH/BB's

Doesn't matter, NH/BB, the public is satisfied with them and believe they get a fair deal. Please see the chart attached. I am grateful that the survey didn't include used car dealers because that would reflect even more poorly on the airlines.

Can you believe how much UA's officers get paid to generate this crap?