In the last few quarters Buffet has sold a large portion of his stake in IBM, while amassing Apple. He’s right, and data from the Collaborative for Customer-Based Execution & Strategy™ supports his decision.
Since late 2016, a benchmark study comprised of more than 5,900 business managers has compiled information regarding the overall customer satisfaction, loyalty outcomes, and several strategic areas that drive customer satisfaction. Using a proprietary approach in analyzing rigorous quantitative models, these results assist in quantifying where different companies stand.
CCUBES Recommends B2B companies ask four questions to gauge their future growth with customers:
- Will your customers recommend you to colleagues and friends?
- Will your customers invite you to make a bid if an opportunity arises in the future?
- How likely are your customers to engage in positive-word-of-mouth on your behalf?
- What is the likelihood of using your products and services in the future?
For all four questions, IBM systematically scores below 50, and frequently ranked last or tied for last. Apple’s story is different. The company has successfully secured a competitive advantage on eliciting positive word-of-mouth and future use. Both of these are key components in a company’s ability to cultivate multiplier customers—customers who are strong drivers of sales, EBITDA, and margin.