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Why investors should favour companies whose product ratings (from customers) are high.

Writer's picture: Max TehMax Teh

Updated: Mar 2

Table of contents:


Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.

 

Prerequisite readings:


After identifying a fast growing industry that CAGR is growing higher than your required rate of annual returns.

  • The next step would be to identify the best products / services within the segment

    • and then find out the company that is providing them.


Customers' reviews will tell if a company makes great products.


How to identify the best products in a certain segments?

1) Start with using AI-powered chatbots to gather information

  • You can start with using a prompt like this on AI-powered chatbots like

It appears that cybersolutions (a segment from cybersecurity) is one of the fastest growing industries in the nex few years (based on statista.com).  

What are some of the publicly listed companies that have the best product ratings & are generating a significant amount of revenue (in % wise) from the listed industry above, pls provide response in a table format.
  • and you should be getting a response like this:

Image source: BingChat on 2Nov2023
Image source: BingChat on 4Nov2023

2) Confirm the findings on customer review sites

  • It is better to find reviews from the products' end-users themselves (in oppose to reviews from reviewers sites such as Tomsguide.com/ cnet.com which *may* be biased, because companies may pay the reviewers to provide better ratings).


  • Here are some of my favourite platforms to find products' reviews from Customers.


For software products, you can use these sites

  • For softwares, G2.com is the one of the most reliable review sites I use.


  • Similarly for a start, you can use BingChat to gather an overview by using a prompt like this

Please help me gather all the product reviews of Fortinet from g2.com in a table format,
that shows the amount of customer reviews for each product too.
  • And you should get a result like this

Image source: BingChat on 2Nov2023
Image source: BingChat on 4Nov2023

G2 Grid function
  • Or you could head over to G2.com directly and look at the product list page, which will show all the reviews of their products.


Per G2.com Fortinet's products has ratings of 4.5 out of 5 stars and received up to 810 ratings.
Fortinet's products has ratings of 4.5 out of 5 stars and received up to 810 ratings. (source: g2.com)

  • It is also useful to see to see how do the products rank against other players in the segment they are operating in.

    • to do so, click on one of the products,

    • and click on the segment

  • here, it will show you the best products within the segment


  • What I like to do is to use the G2 Grid view



  • And you can see the product's positioning based on the customers reviews received.


Fortinet's FortiSASE is positioned as the leader amongst its peers in the SASE segment (source: G2.com)
Fortinet's FortiSASE is positioned as the leader amongst its peers in the SASE segment (source: G2.com)
  • You will want to do this for the main products of the company which are generating (or have future potential) significant revenue.


G2 Compare Now function
  • You can also use the Compare now function to compare the products with the closest competing products on a table format, which allows you to review important information in an organised structure.

    Select few of the products you want to compare against, and click Compare Now
    Select few of the products you want to compare against, and click Compare Now


    You can see the ratings, segments, pricing and key information on a table format.
    You can see the ratings, segments, pricing and key information on a table format.
    How Forticlient ratings fare against some of the top players in the industry.
    How Forticlient ratings fare against some of the top players in the industry.


Apart from G2.com, Gartner is also a popular review site for software related products.

Gartner.com's site visitor trend has been on an increasing trend over the years.
Gartner.com's site visitor trend has been on an increasing trend over the years.

Search for the Company's name or products' names on the search bar


and you can see the product reviews from users

you can also click on the Product Categories to view how the product rank amongst the other alternatives in this category

FortiGate ranked first out of all the Network Firewalls products on Gartner.
FortiGate ranked first out of all the Network Firewalls products on Gartner.

For other software products which you are unable to find on G2 or Gartner.

i) Look at featuredcustomers.com for Company level review.

  • For example, Axon which provides law enforcement technology solutions do not have their products listed on g2.com, luckily featuredcustomers.com provide me the insights I need to know if the customers are satisfied with their products & services on a company level.



  • This is also a good to know information for companies whose products are listed on g2.com also

Good to know that Fortinet is receiving good customer ratings on a company level too.
Good to know that Fortinet is receiving good customer ratings on a company level too.

If the company's main offerings to their customers is primarily in the form of a mobile app, look at their mobile app ratings.
  • For example companies like Airbnb & Duolingo offer their services to users through mobile / tablet applications, hence it will be important to check the rating of those companies' mobile app to get a glimpse of customers' satisfaction.

  • For mobile app rating evaluation read more here.



Examples of sites to find customer reviews for non-software related products.

  • When evaluating companies which are not selling software related products, here are some of my favourite platforms to gather customer reviews.

Consumer electronics

For consumer electronic products like Apple products, Bestbuy.com is a great place to hear about customers' feedbacks about the products.
For consumer electronic products like Apple products, Bestbuy.com is a great place to hear about customers' feedbacks about the products.

Apparel & Fashion

For retail fashion products like Lululemon and Nike, you can find customer ratings on marketplace sites like Amazon.com
For retail fashion products like Lululemon and Nike, you can find customer ratings on marketplace sites like Amazon.com

Automobile

For automobile, Edmunds.com is one of the most popular sites for car reviews from drivers themselves, make sure to look under "Owner reviews" section.
For automobile, Edmunds.com is one of the most popular sites for car reviews from drivers themselves, make sure to look under "Owner reviews" section.

Restaurants & Retail

  • Google reviews (read more here)

For restaurants, Google reviews offer useful insights about customer satisfaction levels.
For restaurants, Google reviews offer useful insights about customer satisfaction levels.

similarly for retail focused companies like Lululemon, Google reviews reveal customers satisfaction in their shopping experiences.
similarly for retail focused companies like Lululemon, Google reviews reveal customers satisfaction in their shopping experiences.

Guideline when choosing these end-customer review sites

  • Opt for sites which have high traffic, as higher sample size is generally better.

    • you can use sites like semrush.com to check the site's traffic trend.



Summary:

  • To find the best product companies to invest in,

  • Identify fast-growing industries and then find the companies with the best products in those industries.

    • Use AI-powered chatbots to gather information and customer review sites to confirm your findings.


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