Posted by: Ryan Schoenefeld | June 13, 2010

A Hypothetical Correlation or Something More?

I recently stumbled upon an on-line article released by Freakonomics entitled, “Are the Lakers a Sure Thing?” The article focused on an unexplained phenomenon, which apparently occurred during the Los Angeles Lakers period of extreme success. But could there actually be a correlation and degree of logistical credibility associated between a basketball team and the Nasdaq Stock Exchange? Especially considering is the vast geographical expanse and overall distance between Los Angeles and New York City.

As a rule of thumb, I generally don’t consider myself to be superstitious. Nonetheless, I find it quite odd that one of the two prominent stock markets in the United States and the Los Angeles Lakers seemed to have a mysterious connection. The situation commenced consideration, when the Lakers were thriving as a championship team up through the conclusion of the 2007 season. It was during this time that we noticed that the stock market generally fell to the way side and was statistically minimized. However on the contrary, the markets rose when the team literally fell off the deep end and ironically enough, between 1987 and 2007, this “classification” was incorrect only a triad of times.

As Ed Carson once stated, “An investor who put down $1,000 into the Nasdaq at the start of 1987 and stayed completely invested through 2007 would have ended up with $7,604, but an investor who bought the Nasdaq in years the Lakers lost and stayed in cash when the Lakers won, would have finished with $21,189.” Regardless, Carson explained that this indicator is an example of potential disaster, especially when individuals merely assume causality, amidst an unexplained correlation.

How about instead of guessing on an assumed reality, we actually meticulously examine circumstances that correlate to our own businesses? We can truly strive to engage our current customers and even prospective ones, by looking at past behaviors and in a sense creating a plan from there. We shouldn’t guess and assume the type of businesses that clients want to work with; we should utilize evidence and create a business environment that they feel comfortable in, which will ultimately led to customer loyalty, and hopefully recommendations to their business colleagues and friends.

With this in mind, an organization should never assume anything. Businesses should engage their customers and see the whole picture, from their innate perspective. This will show individuals that you truly care about establishing customer-loyalty, and are in a sense completely in tune with customer-centricity. You will document to them that you have their back, and in return they will drive the lane and score for you, delivering tangible results that will be mutually beneficial for both sides of the equation.

Image Credits: Google Images (LA Lakers Logo)

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