Is There A Return On Customer Experience Investments?

Companies that deliver great customer experiences are rewarded – by consumers and investors alike.

[Editor’s Note:  An updated version of the Customer Experience ROI Study is available here.]

Some businesses are skeptical about the payoff on customer experience investments and are reticent to invest in improving their customer touchpoints.  A new study by Watermark Consulting provides some compelling evidence that might just win over the skeptics.

Companies that deliver great customer experiences are rewarded – by consumers and investors alike.  That’s the conclusion from Watermark’s analysis of stock market returns for companies that deliver very good customer experiences versus those that deliver very bad ones.

 

From 2007 to 2009, through the best and worst of times, customer experience leaders outperformed the broader market, generating total returns that were 41% better on average than the S&P 500 and 145% better than customer experience laggards.

 

The analysis, which focused on the ten highest and ten lowest ranked public companies in Forrester Research’s 2007 Customer Experience Index study, provides a compelling testament to the power of great customer experiences. 

 

At a macro level, businesses that deliver very positive, memorable customer experiences are rewarded handsomely, in the form of better financial performance and increased market value. 

 

Their operational excellence and attention to detail, their simple and straightforward communications, their well-equipped and genuinely helpful front-line staff – the sum of these parts pays off in the end, even if the precise impact of individual components is uncertain.

 

Read more about the study and its conclusions in Jon Picoult’s CustomerThink article, “Yes, Virginia, There Is A Return On Customer Experience Investments.”