Proof That It Pays To Be America’s Most-Loved Companies


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Bloomberg Businessweek ran an article a few days ago (“Proof That It Pays To Be America’s Most-Hated Companies“) that claims to demonstrate customer service performance has no relevance to stock market returns.

They took the most recent American Customer Satisfaction Index (ACSI) scores for publicly-traded companies and plotted them against the firms’ 2013 year-to-date stock returns.

Yes, you read that right. Bloomberg based its conclusion on stock market data covering less than one year of performance!

Leave it to a Wall Street-centric publication to mistake short-term stock movements with long-term value creation.

If you look at customer experience rankings and stock market performance over a longer time horizon, as Watermark Consulting does in its annual Customer Experience ROI analysis, the data tells a very different story:

From 2007 to 2012, customer experience leaders outperformed the broader market, generating a total return that was three times higher on average than the S&P 500 index.

This isn’t to say that a great customer experience guarantees stock market outperformance, or that a poor experience will surely undermine it. Customer experience is critically important, but it is just one of many factors that drive business results.

However, what this 6-year stock performance analysis does demonstrate is that on average, over the long-term, a great customer experience will be rewarded by consumers and investors alike.

Republished with author's permission from original post.

Jon Picoult
As Founder of Watermark Consulting, Jon Picoult helps companies impress customers and inspire employees. An acclaimed keynote speaker, Jon’s been featured by dozens of media outlets, including The Wall St Journal and The New York Times. He’s worked with some of the world’s foremost brands, personally advising CEOs and executive teams.Learn more at or follow Jon on Twitter.


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