The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference

GlobeSt.com: Is there a correlation between a consumer's satisfaction with a retailer, and that company's financial health?

Fornell: If there was no relationship between how a company treated its customers and its financial health, then there is really something wrong with the marketplace. There has to be a relationship, and as a matter of fact, there is. They're not parallel because the satisfaction, dissatisfaction or change in it, comes first. Then the company that really satisfies its customers to an appropriate degree – you can go too far if it costs too much – in general will see a financial benefit in doing so. And if you treat your customers badly, you get punished. We have found that in recent years, the punishment is tough. You get punished twice. First you get punished by defecting customers, and second, you get punished by investors who withdraw their capital, so the share price goes down as well.

GlobeSt.com: Wal-Mart ranks low on your list but just came off a relatively strong quarter…