The Impact of Customer Satisfaction on the Companies’ Financial Perfomance in Developed Countries

It is usually assumed that increasing the level of satisfaction leads to improved financial performance. However, these assumed relationships, in general, have yet to be proved in a more general context, especially in relation to various developed countries and industries. This study aims to identify empirical relationships between loyalty and customer satisfaction and profitability, measured as ROA, ROE, profit margins and operating income, as well as market indicators (market capitalization and Tobin's ratio). The research sample consists of 84 companies from the USA, Europe and Singapore, observed annually from 2007 to 2018. The study describes a model that explains changes in the performance indicators of companies based on both the current value of customer satisfaction and the relationship with the indicator of the previous year. These results are important for decision makers in banks as well as for investors. Because it will help the decision maker or investors to take the company's performance indicators and the trend of customer satisfaction to make assumptions about future profitability and efficiency in the market. All data for this study were taken from open sources of national satisfaction indexes of the USA, Europe and Singapore.