Proof that Customer Experience Pays

This eService is dedicated to those leaders who need to see the financial justification to the company’s bottom line before they will commit to improving their Customer experience.

Irrefutable Evidence that Customer Experience pays huge dividends- I recently came across an incredible “hospitality index” report that was featured on Mad Money (Jim Cramer), demonstrating how the stocks of 17 companies who have mastered the art of hospitality compared with the rest of the market. The report looked at companies like Whole Foods, Amazon, Costco, Apple, Southwest, Nordstrom, and Bed Bath & Beyond. The results are incredible and irrefutable. From before the study started to its completion, the hospitality index outperformed the S&P by four times; the hospitality index gave you a 257% return to the S&P’s 65% return! These companies have demonstrated when you take care of your Customers, they become more loyal, refer more, spend more, become less price sensitive, have higher employee retention, and lower turnover – which results in superior financial performances.


What are you waiting for? You must not only watch this video on Hospitality Pays, but also show it to your CEO/President and every executive in your company. It should also be seen by every employee in your company. If you ever thought about joining the Customer Service Revolution, now is the time.

*Related – Customer Satisfaction and Stock Prices

Satisfying the Customer pays big dividends – Another report just came out demonstrating the financial benefits that companies with high Customer satisfaction have over everyone else in their industry. According to research from the University of Michigan, Customer satisfaction is directly linked to stock market performance. Companies with high scores on the American Customer Satisfaction Index (ACSI) produce higher stock returns than competitors and greatly outperform the stock

You want proof? The study examined the correlation between Customer satisfaction and financial success. Over a twelve-year period (April 2000 to April 2012) the top Customer satisfaction companies’ stock value went up 390%, where the S&P 500 average stock went down 7%! So if in April of 2000, you invested $100,000 in top Customer satisfaction companies, your cumulative return would have been $390,000. Compared with investing that same $100,000 in the S&P 500, you would have ended up with only $93,000, a loss of $7,000.

*Related – Dates & Registration for 2016 Class of Customer eXperience Executive Academy now available!

Price does not create loyalty – “Companies with highly satisfied Customers generate superior returns because Customer satisfaction is critical for repeat business, and that type of business is usually very profitable,” said ACSI founder, Claes Fornell. “That is, loyal Customers tend to be highly profitable as long as their loyalty comes from their satisfaction and not because prices are low.” Let’s read that quote again. “Loyal Customers tend to be highly profitable as long as their loyalty comes from their satisfaction and not because prices are low.”

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About The Author

John DiJulius

John R. DiJulius is a best-selling author, consultant, keynote speaker and President of The DiJulius Group, the leading Customer experience consulting firm in the nation. He blogs on Customer experience trends and best practices.