Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Fortune 500 loyalty scores reveal customer dissatisfaction

Published 14/05/2024, 18:42
© Reuters.

NEW YORK - A recent study conducted by digital marketing agency SeoProfy has unveiled a widespread lack of customer loyalty among America's Fortune 500 companies, with only ten firms showing a positive net promoter score (NPS). The analysis, which examined over half a million Trustpilot reviews for 129 of the largest U.S. companies, found an overall negative balance of -82% in customer loyalty ratings.

American Family Insurance Group emerged as the leader in customer loyalty with an NPS of 78%, based on 424 reviews. The company, which is the 301st richest in the U.S., secured the top spot despite a $1.9 billion loss last year.

Fiserv (NYSE:FI) and Global Payments (NYSE:GPN) followed, with NPS scores of 69% and 64%, respectively, indicating a significantly more loyal customer base compared to other companies on the list.

The study highlighted that the majority of the wealthiest American companies struggle with customer loyalty, as evidenced by the absence of positive NPS scores among the top 50 richest companies on Trustpilot. Notably, firms such as General Motors (NYSE:GM), Meta Platforms (NASDAQ:META), and Verizon Communications (NYSE:VZ) recorded NPS scores of -90% or lower, reflecting a critical level of customer dissatisfaction.

SeoProfy's CEO, Victor Karpenko, pointed out that the low scores reflect deeper issues within American business culture, suggesting companies prioritize short-term profits over customer satisfaction. He also noted that many customer service issues could be mitigated by improving website organization and search engine optimization, potentially reducing negative reviews.

The study's methodology focused on the 2023 Fortune 500 list, matching companies to their Trustpilot profiles and excluding those with fewer than 50 reviews or no presence on the platform.

This report is based on a press release statement by SeoProfy.

InvestingPro Insights

Amidst the revelation of customer loyalty challenges among America's top companies, General Motors (GM) stands out with a particularly low net promoter score (NPS) as indicated in the SeoProfy study. However, a closer look at GM's financial metrics and market performance paints a more nuanced picture of the company's position. With a market capitalization of $51.17 billion and a strong revenue growth rate of 8.79% over the last twelve months as of Q1 2023, GM appears to be maintaining a solid financial footing.

InvestingPro Tips for GM highlight that management has been proactively buying back shares, and analysts are revising their earnings expectations upwards for the upcoming period. These actions may reflect a confident outlook from both the company's leadership and market experts. Additionally, GM is trading at a low P/E ratio of 5.5, which, when adjusted for the last twelve months as of Q1 2023, is at an even more attractive 4.79. This suggests that the company is undervalued relative to its earnings, potentially offering an opportunity for investors.

Despite the concerns raised by the SeoProfy report regarding customer satisfaction, GM's financial health and stock performance could indicate resilience in its business model. The company has achieved a strong return over the last three months, with a price total return of 18.07%, and a significant uptick over the last six months at 61.11%. These figures may entice investors looking for companies with robust returns despite broader market challenges.

For those interested in a deeper dive into GM's financial health and market potential, InvestingPro offers additional insights and metrics. With the use of coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. InvestingPro currently lists 13 additional tips for GM, including insights into the company's valuation, stock volatility, and industry standing, which could be invaluable for making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.