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Happy customers, good stocks
Jun 12, 2008

MSN Money reports

"A portfolio of companies with the happiest customers gained 75% from 2000 to 2004, dwarfing the 19% gain for the Standard & Poor's 500 Index ($INX, news, msgs< /a>) during the same time, according to a recent study by researchers at the Stephen M. Ross School of Business at the University of Michigan.
In another test by the same researchers, happy-customer companies advanced 40% -- or three times better than the S&P 500 from 1997 to 2003.
In both studies, the stocks of companies with the happiest customers were less volatile." 
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One of the more fundamental principals of Service Excellence is the notion that happy customers, as is the case with happy associates, turn their great feelings around and reward those who serve them  well their loyalty.  The loyalty of a retained customer is a relationship that is cost efficient to maintain.  That condition contributes to a great balance sheet which attracts and retains investors; The Service Profit Chain as articulated By James  Heskett at Harvard.

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"How You Do What You Do", by Bob Livingston

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