Why Talking About Your Customers actually \u2014 and *really\u2014\u2019boosts\u2014your\u2014prices
Ever wonder why some FTSE 350 giants keep trading up while the others sink into complacency? STRAT7 have cracked the code: it’s all about the word count on “customer”. The more you speak to—yes, talk about—your customers, the higher you might tick in the go‑market. Let’s dive into the juicy details.
The Study
- All FTSE 100 & FTSE 250 annual reports were sniffed by the strat7.ai analytics engine in summer 2023.
- Tagged sentences containing “customer” or “customer centric” and checked how often they pop up.
- Cross‑checked the headline numbers via human eyeballing to keep the AI from faking it.
- Scores linked with a 3‑year stock‑price return using 2019 as a clean baseline.
Findings
- Overall, 33% of pages of annual reports quoted “customer centric” – a surprisingly high rate if you ask most board committees.
- Consumer banking tops the charts: 6‑out‑of‑10 pages mention customer focus.
- NatWest leads everything, with a whopping 70% of its pages dedicated to say‑what‑the‑customer feels.
- Utilities slip in second, boasting 80% of its businesses seeing share gains linked to customer talk.
- Travel & tourism follow, with 47% references—yet still hit the brakes when pandemics and price hikes hit.
Why it Matters (Beyond the Buzz)
- Customer‑centric language is consistent, not just random post‑we’ll‑re‑love‑you‑letters.
- Companies that listen, tweak, and act on feedback keep customers happy and keep the ticker tick‑tock in your favor.
- One misstep? Bad leadership learning curve; still, the trend never wanes—these firms are on a path, not a one‑day sprint.
Take‑away for the Real World
“If your boardroom conversations stick to “customers” like a cliché, you’re probably missing the market’s pulse.” – Björn Dufwenberg, MD, STRAT7 Advisory
- Adopt a customer‑first narrative across all documents, not just PR.
- Balance your feeling and data; ask your customers what they want today, and what they’ll desire in next five years.
- Invest time in listening—no shortcut to being “properly customer centric.”
Bottom line: the next time you draft an annual report, sprinkle in more “customer”—not just to sound fancy, but because the numbers (and the smiles) will thank you. Good luck out‑shining your competition—make those shares applaud your customer love!
