Customer Experience Leaders Had Stronger Stock Returns In 2020 Recession
July 12 2022 - 1:08PM
Business Wire
Companies with best customer service doubled
their lead over laggards as the impact of customer service grew,
according to a new analysis from the Qualtrics XM Institute
Companies with the best customer experience ratings outperformed
their industry peers’ stock performance between 2019 and 2022 and
doubled their lead over companies that provide poor customer
experiences, according to new research from the XM Institute at
Qualtrics (Nasdaq: XM).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220712005480/en/
Customer experience leaders saw stronger
stock performance than customer experience laggards (Graphic:
Business Wire)
So-called customer capitalism is only growing in its impact on
stock performance as more commerce is done digitally and customers
are able to ask more of the companies they do business with. A
Qualtrics study found that 73% of executives expect customers to
become more demanding, up from 67% of executives a year ago. Today,
leading organizations like Ford and FedEx are making a strong
customer experience an essential part of their strategy, and an
Executive Order from President Biden calls for federal services to
improve customer experiences.
In order to understand how customer experiences may impact
business performance, XM Institute identified the large, publicly
traded companies with the highest and lowest-rated customer
experiences using data from the Qualtrics XM Institute Q2 2019
Consumer Benchmark Survey, a representative study of 10,000 U.S.
consumers. The analysis tracked these companies’ quarterly stock
performance, adjusted for industry-wide changes, and compared it
against corresponding industry indexes, before, during and after
the recession caused by early COVID fears.
“Today’s customers have higher expectations of the brands they
do business with, and these numbers show that investing in the
customer experience and meeting those expectations can really pay
off,” said Bruce Temkin, head of Qualtrics XM Institute.
“Organizations that get it right can address customer feedback in a
quick and meaningful way to set themselves apart in uncertain
times.”
Key findings:
- Companies with top-rated customer experiences drove greater
shareholder value than peers within their own industries. The
difference between stock prices of top-rated companies and their
S&P industry index doubled between the end of 2019 and the end
of 2021.
- The stock performance of organizations with poorly-rated
customer experiences underperformed compared with their overall
industry, lagging by 21 percentage points at the end of 2021.
- Companies with highly-rated customer experiences saw their
stock performance increase 45% between 2019 and 2022, while
companies with low customer experience ratings saw their stock
returns decline 21% in the same time period.
- The difference between the stock performance of the companies
with the highest and lowest-rated customer experience saw the
biggest quarterly change between Q4 2019 and Q1 2020, just as COVID
started to impact the U.S.
Methodology
The XM Institute at Qualtrics identified the 20 publicly traded
companies with the highest and lowest XMI Customer Ratings from the
data gathered in the Qualtrics XM Institute Q2 2019 Consumer
Benchmark Survey, an online study of 10,000 U.S. consumers
representative of age, income, ethnicity, and geographic region
according to the most recent U.S. Census.
The business performance for all 40 companies was normalized by
comparing their stock prices against a representative industry
index for each company using the most appropriate S&P 500 or
S&P 1500 industry index. The percent change of the industry
index portfolios was subtracted from the percent change of the
company portfolios to find the normalized change for each quarter.
See the full methodology here:
https://www.xminstitute.com/blog/xm-stock-covid/
About Qualtrics
Qualtrics, the leader and creator of the experience management
(XM) category, is changing the way organizations manage and improve
the four core experiences of business—customer, employee, product
and brand. Over 16,750 organizations around the world use Qualtrics
to listen, understand and take action on experience data
(X-data™)—the beliefs, emotions and intentions that tell you why
things are happening, and what to do about it. The Qualtrics XM
Platform™ is a system of action that helps businesses attract
customers who stay longer and buy more, engage employees who build
a positive culture, develop breakthrough products people love and
build a brand people are passionate about. To learn more, please
visit qualtrics.com.
About XM Institute
Qualtrics XM Institute is the world’s premier resource for
experience management (XM) professionals. Led by industry visionary
Bruce Temkin, XM Institute’s faculty researches trends and emerging
practices in how organizations interact with their key
stakeholders, including suppliers, employees, customers and
partners. XM Institute also leads XM Pros, a thriving global
community of more than 6,000 XM leaders who participate in an
ongoing calendar of monthly events. The Institute maintains the XM
Professionals Certification, the gold standard credential in the
field. To access the latest XM content or for more information
about XM Institute, please visit xminstitute.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220712005480/en/
Lauren Braun press@qualtrics.com
Qualtrics (NASDAQ:XM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Qualtrics (NASDAQ:XM)
Historical Stock Chart
From Apr 2023 to Apr 2024