New Watermark Consulting Study Reveals The ROI Of A Great Customer Experience

Stock performance analysis finds that being good to your customers really does pay dividends.

SIMSBURY, Conn.--()--Companies that deliver a great customer experience are rewarded over the long-term, by Main Street and Wall Street.

That’s the conclusion from customer experience advisory firm Watermark Consulting, based on its latest analysis of stock market returns for companies that lead in customer experience versus those that lag.

“From 2007 to 2013, customer experience leaders outperformed the broader market, generating a total return that was 26 points higher on average than the S&P 500,” explained Jon Picoult, Founder of Watermark Consulting.

The analysis, which focused on model portfolios of the Top 10 (“Leaders”) and Bottom 10 (“Laggards”) ranked public companies in Forrester Research’s annual Customer Experience Index study, provides a striking illustration of the business value of a great customer experience.

Picoult added, “What really stood out in this year’s study was the performance of the Customer Experience Laggard portfolio. It posted a negative return during a period when the broader market rose sharply – a sober reminder of the cost of customer dissatisfaction.”

Whether it’s a complicated purchase process, a difficult-to-use product, confusing correspondence, or just poor service, Picoult says many companies excel in frustrating their customers. “Eventually, they pay the price for that,” he added. “And, conversely, companies that impress customers reap the rewards – in the form of increased loyalty, greater wallet share, stronger word-of-mouth and a more competitive cost structure.”

Picoult summed up the findings by highlighting its relevance to public and private companies alike: “The message here is clear. A great customer experience pays off in the long run, enabling companies to combat commoditization, set themselves apart from the competition, and pave the way for better overall financial performance.”

To obtain a copy of the Watermark Consulting 2014 Customer Experience ROI Study, visit http://bit.ly/CX-ROI.

About Watermark Consulting
Watermark Consulting is a leading customer experience advisory firm that helps companies impress their customers and inspire their employees. Watermark has worked with some of the world’s foremost brands, helping organizations capitalize on the power of loyalty, both in the marketplace and in the workplace. To learn more about Watermark’s consulting services, educational programs or conference keynotes, please visit www.watermarkconsult.net.

Contacts

Watermark Consulting
Jon Picoult, 860-658-4381
jp@watermarkconsult.net
Twitter: @JonPicoult

Release Summary

Companies that deliver a great customer experience are rewarded over the long-term, by both Main Street and Wall Street. That's the finding from a revealing new study by Watermark Consulting.

Contacts

Watermark Consulting
Jon Picoult, 860-658-4381
jp@watermarkconsult.net
Twitter: @JonPicoult