Customer Experience Rankings and Stock Market Performance

A new study shows the relationship between a customer’s experience (via Forrester Research Rankings) and financial performance in the stock market. The companies with better customer experience generally beat the S&P 500.

…executives routinely make big investments in other types of initiatives that are notorious for their vague and questionable ROIs: corporate re-brandings, advertising programs, “synergistic” mergers, and even the hiring of highly compensated, star CEOs.

It suggests a double-standard, perhaps reflecting executives’ deep-seated skepticism around the benefits associated with customer experience differentiation.

It was this dichotomy that drove Watermark Consulting to elevate the dialogue – getting executives, even for just a moment, to focus less on project-by-project justifications and more on the macro impact of customer experience excellence.

We’ve accomplished this over the years by studying the total returns for two model stock portfolios comprised of the Top 10 (“Leaders”) and Bottom 10 (“Laggards”) publicly traded companies in Forrester Research’s annual Customer Experience Index ranking.

The results of our latest analysis are in, and they are, in a word, striking…

The Watermark Consulting 2013 Customer Experience ROI Study