Managing today’s astute and compelling customers is no child’s play. Present day organisations have understood that investing in Customer Experience (CX) would help in building better products, processes and services which in turn can drastically improve the financial performance and KPI’s. Return on Investment (ROI) is a time-honoured financial metric which assesses the monetary gains from an investment made. But in the contemporary business world where customers call the shots it’s time to welcome another metric named Return on Experience (ROX).
So how is ROX better than ROI? Studies reveal that more than 75% of the customers would happily repeat a purchase from a company if they know their name, purchase history and recommend the products based on their preferences. Consequently, this would mean that organisations are in search of metrics which can effectively measure Customer Engagement (CE).While ROI is built on a ‘narrow’ concept of cash outflow Vs Cash inflow, ROX is a holistic & flexible schema which captures the impact of investments in customer engagement, brand experience and clearly outline your investments in digital initiatives. PwC 2019 survey reveals that Experience is the product.
Companies like Qualtrics which are into the business of measuring Experience Management (XM) reveal that successful companies are more proactive than reactive to problems. Companies use experience management (XM) to augur and abate problems even before they happen. Providing great employee experience (EX) is the stepping stone to enduring customer experience (CX), product experience (PX) and Brand experience (BX). Superior customer engagement is the central theme of modern business strategies. Strategies are formed based on how delighted your customers are? and how can it be improved?
There is no simple direct formula to arrive at ROX. It is a metric which is unique for a company and its customers. Since ROX measures CX, it is best to primarily focus on CX results and then on financial results. Most common metrics to measure CX includes Net Promoter Score (NPS), Customer Satisfaction (CSAT), Customer Effort Score (CES), Customer Churn Rate and Customer Retention Rate. ROX is becoming an indispensable metric because of its ability to analyse results, drive performance and evaluate personalised experiences.
Here are a few tips to improve ROX
• Integrate CX with EX