Customer Satisfaction: A Hidden Growth Catalyst for Amazon.com, Inc. (AMZN)

Google, which ranked highest on the dimension of Workplace Environment falls behind both Amazon.com, Inc. (NASDAQ:AMZN) and Apple in terms of customer satisfaction. It ranks high on a dimension that can’t be monetized – a great workplace. While Google is known for its hospitable workplace environment, this does not mean investors will get something out of it. On the other hand, Apple’s iPhone 5 again became the top selling smartphone in the U.S., dethroning Android-running Samsung Galaxy S3 and other smartphones that use Google’s operating system.

Barnes & Noble, Inc. (NYSE:BKS) suffered a sharp drop in revenue from the Nook, because of sluggish sales of e-readers and tablets. The Nook Segment revenue was down 26% in February last week. While the sales of digital content have risen 13.1% over the holidays, this is little compared to 113% last year and 38% of the previous quarter. This suggests that Barnes & Noble is having trouble holding the 25% – 30% of eBook market that it has in the United States.

One big surprise was Vitacostwhich was ranked #3 in customer satisfaction during the holiday shopping season. According to the ForeSee, E-Retail Satisfaction Index, Vitacost is the leading online retailer of health and wellness products. This market is bound to grow because of the increased focus on healthy products and lifestyle.

Conclusion

With a market cap of $125 billion and an enterprise value of $114 billion, Amazon has good reason to celebrate. Its profit margin of -0.06% is low, but its revenue of $61 billion is huge, putting the company in a comfortable position. With high sales and customer loyalty, the investor will not regret investing in the Amazon. A good reputation and customer satisfaction are key factors in deciding which company will remain successful in the long term. Amazon ranks high on good reputation and customer satisfaction. It ranks the highest on two domains that are most important to revenues in the long term: Emotional Appeal and Products & Services. This will ensure that Amazon will be successful in the long-term.

The article Customer Satisfaction: A Hidden Growth Catalyst for Amazon originally appeared on Fool.com and is written by Maxwell Fisher.

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