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"→
Investors have been told for years that diversification lowers risk. While that may be true in certain instances, it certainly isn't true in the world equity markets.
Let me give you an example: Had you purchased the five ETF's that we track in MarketClub's "Global Strategy Portfolio" on January 2, 2008, you would have seen your equity diminish 29% in the space of 30 months. However, had you followed the "Global Strategy Portfolio" with the same five ETF's, you would have seen your equity grow 23% in the same time-frame. With a 52% difference between the potential for profit and the potential loss, those are numbers that no investor can ignore.
As ETF's continue to gain traction I wanted to get someone who really knows the ETF's to give us a little "ETF Talk". That person is Doug Fabian, from FabiansSuccessfulInvesting.com. Please enjoy the article, check out Doug's ETF knowledge, and please comment below with your thoughts and opinions on ETF's!
While I still believe that we are in the midst of a bear market rally, there are plenty of ways to generate profits during this period of unprecedented market volatility. Despite the 33% rally in the S&P 500 since March 9, it is important to remember that the index is up only 0.6% YTD.
This paltry gain pales in comparison to the rallies in emerging markets. The iShares MSCI Emerging Markets Index (EEM), which duplicates the performance of the stock markets of 26 different countries, is up 27% so far this year. If you typically invest in developed markets, you now may be tempted to buy an exchange-traded fund (ETF) that gives exposure to emerging markets.