Customer Satisfaction: a high return, low risk investment?
Julia Asri Meigh, Head of ESG and Macro Research (New York)
The idea that companies with higher levels of customer satisfaction generate superior returns at lower systematic risk was originally demonstrated in a study published in 2006. A later research paper explores this idea further by analysing the relationship between customer satisfaction and stock market returns over a 15-year period.
Below, we highlight key findings from both studies, illustrating the stock-specific use cases for customer satisfaction data. We also highlight a number of alternative data providers who offer measures of customer satisfaction.
SATISFIED CUSTOMERS, EXCESS RETURNS
Comparing the cumulative returns on