Digital CX-focused companies enjoy higher equity returns than their digitally delayed counterparts, according to a recent study from financial analytics and intelligence firm S&P Global Ratings and 451 Research.

In evaluating the credit ratings, market capitalizations, and earnings transcripts of almost 10,000 global issuers, the study found that companies using technology to adapt to the needs of their customers proved more attractive to investors.

Specifically, the top 22% of digital CX leaders delivered higher average equity returns than their nondigital peers by a factor of 2.7, with the majority of such companies found to have frequently and consistently used CX and service terms in earnings transcripts, in addition to digital transformation and machine learning terms.

Moreover, digital CX leaders also had lower observed default rates when there were no macroeconomic shocks or periods of major market dislocation. Although CX leaders narrowly lost to S&P’s global portfolio on the share of investment-grade ratings—49% versus 51%—inclusion of the BB credit rating category showed three-quarters of CX leaders to be rated BB or higher, compared to 62% of CX global peers.

“Since CX is a catalyst in many digital transformation projects, it is important to understand where businesses are making investments in new technologies to deliver differentiated and consistent CX,” S&P said in a statement. “In technology terms, executing on business transformation demands new investments in more modern software and related technologies. This requires a well-planned approach to business and IT innovation and investing in new tactics to remain relevant in the eyes of customers.” S&P Global is a provider of credit ratings, benchmarks, and analytics in the worldwide capital and commodity markets. It is one of the largest credit rating agencies, assigning letter grades to companies and countries and the debt they issue on a scale of AAA to D, indicating their degree of investment risk. In December 2019, it acquired 451 Research, a research and advisory firm providing intelligence, expertise, and data covering high-growth technology markets.