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Customer Value Index 200: Customer-centric companies have a higher valuation

We have written about the customer era before and pointed out how important the transformation is that is happening all over corporate america: now there is more proof that being customer centric is super profitable. Companies which focus on their customers get higher valuations and better investor returns on Wall Street. Forrester wrote about this phenomena in their book Outside In : companies which score high on the Forrester Customer Experience Index also outperform their peers on Wall Street. Now a savvy Wall Street investment firm has released an investment index based on their own measure of customer centricity.
“This innovative index offers investors an opportunity to capture the value offered by companies that have historically delivered high quality economic profits and developed deeply emotional customer relationships based on cultures of transparency, authenticity, and engagement.” The idea behind CVI 200 is that engaged and loyal customers are key determinants of a business’ ability to generate long-term revenue and cash flow.

“Upon looking back on previous data starting 2007 to present, the CVI 200 has outperformed the S&P 500 Index by generating a 10.7% annualized rate of return”.

Those are some impressive numbers indeed and some solid proof that becoming a “customer centric enterprise” pays off handsomely! If you are a software or internet company and interested to become customer centric in a hurry, feel free to reach out to us. We can help!

Ellis Luk

I'm the marketing and communications manager at Totango - but you can call me Chief Content Officer. When I'm not writing, you can find me obsessing over memes, debating grammatical usage or getting distracted by the latest Tumblr gif blogs. Customer love starts with a friendly hello!

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