Recurring Revenue Business Models Sustainable Competitive Advantages
Potentially High Cash Returns on Invested Capital Excellent Management Teams
Prospero looks closely at the relationship between a company and its customers to see whether the company is delivering real value to its customers and whether the value proposition for the customer is increasing or decreasing over time. We believe it is possible to gauge the value a company is providing to its customers by looking at statistics such as customer retention rates and by surveying customers to see how they feel about a company's products and services. Prospero has found that companies with high levels of customer loyalty and support are able to grow faster and more profitably because satisfied existing customers are more likely to purchase additional services and to recommend products and services to others. Repeat customers are also typically easier and less expensive to process because both parties have learned from their prior interaction. Lastly, retaining existing customers means that each new customer is an additional customer rather than a replacement.