Building the World's Largest Community of CX Professionals

Learn More
Customer experience performance and stock market performance

New Research from Qualtrics Shows CX Quality Impacts Stock Performance

Companies with Best CX Saw Their Stock Value Rise; The Opposite was True for Low-CX Firms

  • Share

New research from Qualtrics, the experience management (XM) provider, reveals a direct correlation between a company’s CX quality and its stock market performance. Companies with top-rated CX drove greater shareholder value than peers within their own industries, the research findings show, while the stock performance of organizations with poorly rated CX underperformed when compared to their cohorts in the same sector.

The research, conducted by the Qualtrics XM Institute, sought to understand how customer experiences could impact business performance. Using data from the institute’s Q2 2019 Consumer Benchmark Survey—an online study of 10,000 US consumers representative of age, income, ethnicity, and geographic region according to the most recent US Census—Qualtrics identified the 20 publicly traded companies with the highest and lowest XM Institute customer ratings. The business performance for all 40 companies was then 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. To determine the normalized change for each quarter, Qualtrics subtracted the percent change of the industry index portfolios from the percent change of the company portfolios.

According to the results, companies with highly rated CX saw their stock performance increase 45% between 2019 and 2022. Conversely, the stock returns of companies with low CX ratings declined 21% during the same time period.

In another metric, 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. And the difference between the stock performance of the companies with the highest and lowest CX ratings witnessed the biggest quarterly change between Q4 2019 and Q1 2020, just as COVID-19 started to impact the US.

The graph below shows the stock performance for XM leaders and laggards in 2019 compared to industry indices.

As more commerce is done digitally and customers are able to ask more of the companies with which they do business, leading organizations are making a strong customer experience an essential part of their strategy. A recent Qualtrics study shows that 73% of executives expect customers to become more demanding, up from 67% a year ago.

“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,” says 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.”  

Qualtrics, with co-headquarters in Provo, Utah, and Seattle, Washington, is the creator of the category now known as XM, which the company defines as the process of monitoring every interaction that people experience with a company in order to spot opportunities for improvement. In 2020, Qualtrics launched the Qualtrics XM Institute, a community and resource destination that offers members around the world access to original research and thought leadership insights on XM best practices. XM Institute also leads XM Pros, a global community of more than 6,000 XM leaders who participate in an ongoing calendar of monthly events.

Latest Research

CX in the Healthcare Industry

CX in the Healthcare Industry

Patient Experience Management and Patient Engagement: Best Practices, Key Market Trends, Case Studies, and Market Forecasts

CX Market Forecasts

Customer Data & Analytics, Customer Relationship Management, Contact Center, Personalization & Optimization, Customer Data Platforms, Customer Insights & Feedback, and Employee Experience

Customer Insights & Feedback

Market Drivers and Barriers, Key Industry Players, Market Sizing and Forecasts, and Case Studies

omnichannel customer engagement

Omnichannel Customer Engagement

Case Studies, Market Drivers, Market Barriers, and Best Practices for the Adoption of Omnichannel Engagement Strategies and Software

Report Ad - Customer Insights & Feedback 300x250

Related Articles

Customer experience mergers and funding news

Algolia Acquires, Enghouse Buys VoicePort; Stratifyd, OneSignal Raise Funds

Algolia Acquires, Combining Keyword and Vector Search Algolia, the provider of a hybrid search engine combining keyword and vector search, is acquiring, whose flagship product, Neuralsearch, is a vector search engine…

Read More
Customer experience acquisitions and funding news

M&A/New Funding Activity for Thoma Bravo, Gorgias, Flip, Netigate, and Medallia

Ping Identity to Be Acquired by Thoma Bravo for $2.8 Billion Ping Identity, the Denver, Colorado-based provider of intelligent identity solutions for the enterprise, has entered into a definitive agreement to be acquired by prominent private…

Read More
Forsta acquires HelloIgnite customer experience crowdsourcing

Forsta Acquires HelloIgnite, Adding Crowdsourcing to its Experience Offerings

Forsta, a global provider of market research, CX, and employee experience (EX) technology, will broaden its solution set via the recently announced acquisition of HelloIgnite. HelloIgnite offers a collaboration platform that helps companies…

Read More
Customer experience acquisitions and funding

mParticle Buys Vidora; New Funding for Aisera and CleverTap

mParticle Acquires AI Startup Vidora mParticle, the New York City-based provider of a customer data platform (CDP) for product and customer lifecycles, has acquired Vidora, an artificial intelligence (AI) personalization platform provider for…

Read More
More related Articles