Sick of rotten service? See it as a Buy signal

‘The customer is always right,’ said the 19th-century American retail pioneer Marshall Field — and shoppers at his Chicago store became so enamoured of their omnipotence, and of his assistants’ assistance, that they spent enough to make him the wealthiest businessman in the city. His retail innovations — unconditional refunds and consistent pricing — soon inspired imitators. In Philadelphia, John Wanamaker replicated the model and elevated shoppers at his Grand Depot to the rank of royalty with his derivative decree that ‘The customer is king!’ A new era of customer service was ushered in that, over the ensuing 100 years, saw stock flying off the shelves, and stock prices flying high.

But in the 21st century, the business model seems to have changed. Companies that persevered with old-fashioned values have seen their stock fall — as investors in Marks & Spencer and British Airways have found. At the same time, companies with the worst reputations for customer service have been among the best performers on the stock market — as shareholders, if not customers, in Centrica, Carphone Warehouse, Ryanair, First Group and NTL will appreciate.