Shawn Bradley 
Want to know what great investment portfolios have in common?
Healthy portfolios pick customer obsessed companies. Period.
Why?
Companies that prioritise customer experience grow faster than their competitors for one reason…
They keep their customers.
Happy customers stick around longer, spend more money and tell their friends. That translates to faster revenue growth and higher stock prices.
The struggling companies? They lose customers and watch their sales and stock prices decline.
Let’s dig into why portfolios should only consist of customer obsessed companies.
What you’ll learn:
- Customer Experience Scores Explain Stock Performance
- Help Desk Specialists Are Why You Should Invest In Customer Obsessed Companies
- Happy Customers = Wealth Accumulation
- The CX Details You Need to Focus On
Customer Experience Scores Explain Stock Performance
Here’s the thing…
Customer obsessed businesses are beating their peers by wider margins than ever before. Research by Qualtrics XM Institute analysed 4 years of stock market data and discovered CX leaders outperformed CX laggards by 23 percentage points by the end of 2024.
23%! That might not sound like a lot, but over the course of four years that equates to a big chunk of portfolio growth.
When companies focus on delighting their customers they’re creating sustainable long-term value. Keep customers happy and they’ll continue doing business with you. That allows customer obsessed businesses to sell more stock without needing to constantly acquire new customers.
What most investors fail to realise is that this trend isn’t new. Businesses that prioritise customers have been beating the market for years, yet investors continue to flock towards companies with ‘better’ financial fundamentals because they don’t look past the spreadsheets.
Help Desk Specialists Are Why You Should Invest In Customer Obsessed Companies
Help desk specialists are the front line of every company’s customer experience efforts. These folks are responsible for interactions that make customers love a brand or tell their friend to take their business elsewhere.
When companies invest in support teams they prioritise customer satisfaction.
Why?
Help desk teams are the drivers of customer retention and loyalty. Keep your customers happy and they’ll reward you with their lifetime business.
It should come as no surprise then that teams that put money into great customer support enjoy superior stock performance.
Check out the latest customer support specialist vacancies in Tucson to see how top companies are investing in their support teams right now.
Companies that spend money on support teams know what most don’t…
Every phone call, chat session and email exchange is an opportunity to improve a customer’s perception of your brand.
Granted some of these interactions might be negative but that’s okay! As long as the company makes it right the total impact will still be positive. As customer problems are solved day in and day out they’ll grow more attached to the brand. That’s how companies build logos that people trust. That’s what drives investor demand and pushes stock prices higher.
Happy Customers = Wealth Accumulation
It’s a virtuous cycle.
Customer obsessed businesses win in the short term and compound their advantage over the long run.
Customer retention goes up
Happy customers stay longer and spend more throughout their lifetime.
Acquisition costs go down
New customers can cost 5-25x more than keeping existing ones. Happy customers who spread the word are free marketing.
Brand authority skyrockets
Feeling like a brand can do no wrong makes it easier to recruit top talent and form lucrative partnerships.
It should be obvious by now why the highest performing portfolios only consist of customer obsessed companies. Everything those companies do from an investor standpoint is geared towards creating long-term compounding returns.
Customers drive revenue and profit. That’s why organisations that obsess over them report 41% faster revenue growth than businesses who don’t prioritize customers according to Forrester. Rampant revenue growth fuels stock price appreciation. Stock price appreciation leads to massive returns for portfolios.
See how everything ties together?
Here’s what investors miss…
When companies focus on delighting their current customers they rarely run into cash flow problems. Customers that enjoy positive experiences with a brand will pay whatever price gets set. Think about that the next time an earnings report shows a company struggling to turn a profit.
CX Details You Need to Focus On
Ready to find the businesses filling a portfolio?
Here are four telltale signs that can be spotted from public data:
- Are they hiring help desk specialists? Customer obsessed companies are always looking to improve CX by empowering support teams.
- Do they have low churn? If people like doing business with a company they won’t quit.
- Check their reviews. Do customers seem to love the brand or are they constantly complaining?
- Does management mention CX? Take notes when executives start bragging about their customers on earnings calls and annual reports.
It’s strange to think how many investors with basic financial literacy still ignore customer centricity as a data point. Here we are able to analyse a company’s support teams, customer retention numbers and public perception without leaving the desk. Customer obsessed businesses can literally be spotted just by doing a quick Google search.
Companies that value their help desk specialists know they have a direct line to keep customers happy. By placing a bet on those companies the investment goes into businesses that understand exactly what it takes to build a world-class brand.
Separating The Winners From The Losers
Look… no one likes losing money.
By simply shifting focus to customer obsessed companies it’s possible to instantly weed out poorly performing businesses. Companies that don’t care about customers lose them. When the best customers leave for greener pastures they take their business with them.
Stop investing in companies that don’t prioritize customers. They’ll tank a portfolio.
Customer obsessed companies win the long game for one reason. Happy customers.
- Every support team interaction
- Every issue that gets resolved
- Leads to another positive experience
And as customers enjoy more positive experiences with a company their love will continue growing. Long-term customers become relentless advocates. Companies that win over those types of customers will destroy their competitors come income distribution season.
Here’s the CX playbook once more:
- Customer obsessed businesses outperform their peers
- Help desk specialists are the reason why
- Happy customers stick around and buy more
- Smarter investors focus on support team investments and churn
Remember, stock prices don’t go up because. They go up because customers continue doing business with a company. Businesses that keep investors rich understand how to create spectacular customer experiences.
As portfolios get built, those looking to diversify their portfolio should only give shares to customer obsessed companies.
The future will prove it worthwhile.
