Companies who make customer service one of their priorities not only delight their customers; they also delight their investors.
The stock market has been crushed, as of late. I’m not an economist, but I recently found some interesting information that may give an investor an edge, and it is all because of customer service.
The connection between stock prices and customer service cannot be ignored. While we don’t have data through the current tumultuous economic cycle, we can look back at a ten year period from 1996-2006, which included both a bull and bear market.
University of Michigan Ross School of Business Professor Claes Fornell directs the National Quality Research Center, which manages the American Customer Satisfaction Index (ASCI).
Vanderbilt University Professor Bruce Cooil used the ASCI numbers to determine that certain high-level customer focused companies could out perform the market. Simply buying a portfolio of companies with high ASCI scores wasn’t the answer. But, companies with above average ASCI scores who also had scores that had risen over the past year far outperformed the market. A portfolio that consisted of these companies had a gain of 212% while the Standard and Poor’s 500-stock index gained 105%.
While the above numbers may not apply specifically to your business, the concept does. The effort and cost to provide an outstanding customer service experience doesn’t cost. It pays!
Shep Hyken, CSP, CPAE is the Chief Amazement Officer of Shepard Presentations. As a professional speaker and author, Shep helps companies develop loyal relationships with their customers and employees. For more information on Shep’s speaking programs and books, please contact (314) 692-2200. Email: firstname.lastname@example.org Web: www.hyken.com. For information on customer service training, go to www.TheCustomerFocus.com.