Forrester's Total Experience Score: Navigating High-Growth Investment Opportunities in a CX-Driven World

The global economy is in the midst of a customer experience (CX) revolution. Companies that master the alignment of brand promise and delivered experiences—quantified by Forrester's Total Experience Score (TXS)—are now poised to capture disproportionate revenue growth. Forrester's 2025 TXS rankings reveal a stark divide: investment firms in the UK, Singapore, and India, along with direct banks in North America, dominate the high-growth tier, while traditional insurers in the U.S. and Canada languish in the low-growth quadrant. For investors, this is a call to prioritize firms with elite TXS profiles and narrow customer/noncustomer gaps—hallmarks of scalable loyalty and revenue resilience.

Top Performers: Where Brand and Customer Experience Converge

1. Investment Firms in the UK, Singapore, and India
These sectors lead their regions in TXS rankings due to their mastery of both Brand Experience (BX) and Customer Experience (CX).

• UK Investment Firms: Ranked as Europe's top industry, they score highest in BX salience (brand awareness/trust) and CX satisfaction. Their ability to win new customers (via BX) and enrich existing ones (via CX) creates a 3.5x revenue growth multiplier, as highlighted by Forrester's growth grid.
• Singapore Investment Firms: Excel in narrowing the gap between customer and noncustomer perceptions, with BX differentials smaller than in Australia. This “elite” consistency suggests untapped potential to expand their market footprint.
• Indian Investment Firms: Despite lagging banks in their region, they achieve synergy between BX and CX, positioning them to outpace peers in the coming years.

2. Direct Banks in North America
Forrester identifies direct banks as North America's top-scoring sector, with Navy Federal Credit Union and Chime leading the charge. Their success stems from:
- Digital-first models that simplify banking for younger demographics.
- Strong BX salience driven by affordability and transparency.
- CX excellence in customer support and product accessibility.

Underperformers: Insurers Struggling with Trust and CX Gaps

The TXS rankings expose significant vulnerabilities in traditional insurance sectors:

1. U.S. Health Insurers
- Declining Trust: Only 51% of consumers trust their insurer to act in their best interest—a 5% drop since 2022.
- Poor CX: Forrester notes a “five-year low” in CX Index scores, with brands like UnitedHealthcare and Anthem recording their worst results.
- Affordability Crisis: High deductibles and opaque billing processes erode customer loyalty.

2. Canadian Auto/Home Insurers
- Low BX Scores: Noncustomers perceive these firms as less trustworthy than customers, widening the BX gap.
- Premium Pressures: Auto premiums rose 12% in 2025, driving a 57% customer churn rate as shoppers seek cheaper alternatives.
- Regional Risks: Weather-related claims (e.g., Florida hurricanes) and fraud exacerbate financial strain.

The Investment Thesis: Prioritize TXS “Elites” and Narrow Gaps

Forrester's framework offers investors a clear roadmap:

1. Target “Elite” TXS Firms
- Elite Status: Firms in the top 5% globally (e.g., TD Wealth (CAN) and NRMA Insurance (AUS)) demonstrate BX/CX alignment that drives sustained growth.
- Growth Grid Quadrants: Focus on companies in the “strong growth” quadrant—those excelling in both BX (customer acquisition) and CX (loyalty/enrichment).

2. Favor Narrow Customer/Noncustomer Gaps
- Singapore's Edge: Their minimal BX differential between customers and noncustomers signals a robust brand narrative.
- U.S. Direct Banks: Narrow gaps reflect strong brand messaging and consistent CX delivery.

3. Avoid Underperformers—Unless Turnaround Evident
- Health Insurers: Avoid unless they implement transparency reforms (e.g., UnitedHealth's (UNH) pilot program to simplify billing).
- Canadian Auto Insurers: Look for firms adopting telematics (UBI) or embedded insurance models to reduce premiums and improve CX.

Actionable Investment Strategies

1. Buy into TXS Leaders
2. UK Investment Firms: Consider exchange-traded funds (ETFs) tracking the FTSE 100 financial sector.
3. Singapore Investment Firms: Look to the STI Financial Index.

4. North American Direct Banks: Direct exposure via stocks like CHME or ETFs like FEXZ (Financial ETFs).

5. Short Underperformers or Use Derivatives

6. Bet against U.S. health insurers (e.g., UNH, ANTM) using inverse ETFs like SPHI.

7. Monitor Canadian auto insurers' stock volatility (e.g., FAF.TO, GIB.A) for short opportunities.

8. Monitor BX/CX Metrics

9. Track Forrester's quarterly TXS updates to identify firms narrowing their customer/noncustomer gaps.

Conclusion: The TXS Advantage in 2025 and Beyond

The TXS framework is more than a metric—it's a predictor of market dominance. Investors who align with firms that harmonize BX and CX will capture the 3.5x revenue multiplier effect. Conversely, insurers stuck in low-trust, high-cost models face dwindling relevance.

The path forward is clear: invest in elite TXS performers and avoid sectors failing to close BX/CX gaps. In a world where customer trust and experience are currencies, Forrester's rankings are the compass to navigate this new economic landscape.