The American Customer Satisfaction ETF (ACSI) is an Exchange Traded Fund that is built around the idea that companies who have high customer satisfaction, will perform well in the long run, and here is a hint, but there is a lot of evidence to prove this thinking right.
Let's review some of this evidence before we go any further.
- According to a 2011 American Express Survey, 78% of consumers have bailed on a transaction or not made an intended purchase because of poor service experience.
- According to a White House Office of Consumer Affairs report, on average, loyal customers are worth up to 10 times as much as their first purchase.
- Marketing Metrics reports tells us that you have a 5-20% probability of selling to a new prospect but a 60-70% probability of selling to an existing customer.
- “Understanding Customers” by Ruby Newell-Legner says it takes 12 positive experiences to make up for one unresolved negative experience.
- According to a White House Office of Consumer Affairs report, It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.
- According to a 2011 American Express Survey, 3 in 5 Americans (59%) would try a new brand or company for the better service experience.
- According to a White House Office of Consumer Affairs report, News of lousy customer service reaches more than twice as many ears as praise for the good customer service experience.
- According to a 2011 American Express Survey, in 2011, 7 in 10 Americans said they were willing to spend more with companies they believe provide excellent customer service.
- According to Lee Resources, 91% of unhappy customers will not willingly do business with you again.
- A report from the Customer Experience Impact Report by Harris Interactive/RightNow, 2010, found almost 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience.
The list could go on and on, but I think you are getting the point. Now think about the list above and think about this list of companies; Amazon.com Inc (AMZN), Apple Inc (AAPL), Vonage Holdings Corp (VG), Alphabet Inc (GOOG), Humana Inc (HUM), FedEx Corp (FDX), JetBlue Airways Corp (JBLU), The Hershey Co (HSY), Coca-Cola Co (KO). Continue reading "One ETF Betting On High Customer Satisfaction"