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Happy Customers Make Happy Investors
Net Promoter Score leaders outperformed the stock market by 2.8 times over 10 years.
In our new book Winning on Purpose: The Unbeatable Strategy of Loving Customers, we argue that long-term investors should love customer capitalism. When companies successfully put customer interests first, they stoke an amazing loyalty-growth engine, customers who come back for more and bring their friends. And these companies deliver superior results over time.
The proof is in the numbers. In their 2011 book The Ultimate Question 2.0, Fred and Rob Markey listed a dozen (at the time) publicly traded Net Promoter Score leaders—namely, Amazon, Meta (formerly Facebook), Apple, Costco, Google parent Alphabet, Southwest Airlines, American Express, JetBlue Airways, Verizon, T-Mobile US, NortonLifeLock, and Metro PCS (which merged with T-Mobile in 2013). From January 1, 2011, to December 31, 2020, that group of companies proceeded to outperform the Vanguard Total Stock Market Index exchange-traded fund (VTI) by a factor of 2.8 to 1.
Winning on Purpose: The Unbeatable Strategy of Loving Customers
This new book by Fred Reichheld, Darci Darnell, and Maureen Burns demonstrates that great leaders embrace a higher purpose to win, and Net Promoter® shines as their guiding star.
Net Promoter®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
February 07, 2022