JD Power and Associates
A data and analytics company that provides consumer insights and satisfaction ratings primarily in the automotive industry.
Why It Works
Gathers real customer feedback, which is valuable for manufacturers aiming to improve their products.
Revenue & Traction
Makes over a billion dollars through research and selling awards to companies.
Founding Story
Founded in 1969 by James David Power, who recognized a gap in customer feedback in automotive advertising.
Business Playbook
Surveys customers to provide insights and creates awards that incentivize companies to improve based on feedback.
Why this works now
Most automotive manufacturers overlook the importance of authentic customer feedback. JD Power and Associates capitalizes on this by utilizing a sophisticated survey platform that captures real-time consumer insights. In its early days, James David Power leveraged industry trade publications to promote his research findings, establishing credibility and attracting clients. A significant challenge for JD Power is the high customer acquisition cost associated with maintaining its extensive database of consumer opinions, which can result in lengthy payback periods for new client contracts.
Additional Information
The company was sold to McGraw Hill for $500 million and later for over a billion dollars.
Source
Podcast: My First Million
Episode: The "Idiot Index": the simple math that made Elon Musk billions
Creation Date: June 4, 2026
Ideas worth reading next
Vid Angel
Vid Angel is a platform that offers clean versions of popular movies and TV shows by removing objectionable content, catering to families and those seeking a cleaner viewing experience.
Value-Based Streaming Platform
A streaming service that focuses on producing and distributing values-based content, catering to audiences seeking alternatives to mainstream nihilistic narratives.
Angel Studios
Angel Studios is a film and television production company that produces family-friendly content, allowing audiences to invest in projects they want to see made.
More case studies
Angel Studios
A TV and movie studio that focuses on creating family-friendly content and allows audiences to fund projects directly.
A24
A24 is an independent entertainment company known for producing and distributing innovative films and television shows.
Advance Publishing
A family dynasty business that owns a variety of publications and properties, including newspapers and magazines.