Posted by Bruce Temkin on March 12, 2010
Jon Picoult, the Founder of Watermark Consulting, just published a blog post called Yes, Virginia, There Is A Return On Customer Experience Investments. He looked at the stock performance of companies based on how well they did in Forrester’s Customer Experience Index (CxPi).
It’s great work! Here’s a graphic from his post that shows how customer experience leaders outperform customer experience laggards in the stock market. His analysis used the results from our 2007 CxPi.
My take: Picoult’s work complements my findings from research called customer experience boosts revenue in which I analyzed last year’s CxPi. Here’s the difference in loyalty that I found between companies in the top quartile of customer experience (when measured against industry averages) and the companies in the lowest quartile:
- 14.4% more customers willing to buy another product
- 15.8% more customers reluctant to switch
- 16.6% more customers likely to recommend
The bottom line: There’s good reason to be bullish on customer experience