Do you know over 80% of organizations expect to compete majorly on customer experience (CX) this year? Plus, half of the brands are planning to increase CX-related technology spending in 2019. These stats underline the fact that the marketers of the majority of businesses are now worried about how to engage their customers better and enhance their experience.
According to the PwC’s 10th annual Global Consumer Insights Survey (GCIS), along with the traditional return on investment (ROI), there is a need for another metric for businesses which focuses more on customer experience.
This is because better customer experience brings forth benefits like increase in web and mobile conversion rates, growth in average order value, greater retention, higher customer lifetime value, increased loyalty program memberships, and much more. In other words, tangible business benefits.
Whether you are into health services or are selling household goods or cars, providing a superior customer experience can help you stand apart from the crowd.
Hence, your business needs the right customer experience management strategy. Above all, you need to understand and add in a new metric to your success story—The Return on Experience i.e. ROX.
What is Return on Experience (ROX)?
To understand this new term, let’s quickly go back to the traditional ROI. Basically, it is a term used to evaluate the efficiency of an investment. In this case, the benefit received from an investment is divided by the cost of that investment and the result is expressed in the form of a percentage or a ratio called ROI. So far, it has been the primary way to measure the success of initiatives, and even brands themselves as a whole.
However, now marketers are looking to measure the purchase experience of their consumers with the help of a new metric – The Return on Experience (ROX). Being characterized by its ability to analyze results, derive lessons and actions, and make a firm observation from its practice, it appears to be a more relevant and compelling metric. It helps businesses gauge the real value of personalized customer experiences.
To make it clearer, have a look at two major reasons to involve ROX in your marketing strategy.
1. Incorporates Emotion to Affect Brand and Business Positively
One of the major factors the ROI measurement overlooks is emotion. It hardly cares for how your customer feels about your brand. It is high time for brands to focus their energies on creating experiences. There is a need to drive the highest possible emotional response. As emotion fuels engagement, it certainly impacts your brand.
2. Referrals Play a Vital Role
Leading a market is not just about selling a product to the consumers. It is equally important to ensure repeat purchases and recommendations by the consumer in various communities. You need to look forward to clinching opportunities to enhance customer experience and engagement. When the consumer performs the role of a marketer, by sharing his/her experience and recommending your products, that is a real success.
One thing is pretty clear, providing a great customer experience has some of the biggest payoffs, or returns! But, how can a business improve its ROX?
How to Boost ROX for Your Business
There are a number of things that savvy marketers are trying, many of them with great results. Here are some ideas for you to explore.
1. Understand the Behavior
Customer segmentation by demographic data will no longer be helpful. If you wish to take your customers’ experience to the next level of personalization, you need to dig into their behavioral and attitudinal attributes. While this will help you track how, when, where and why consumers shop, also enable you to deliver tailored, seamless, end-to-end experiences.
2. Blend CX with EX
Undoubtedly, employee experience (EX) has a huge effect on customer experience (CX). For any business, employees serve to be their proud brand ambassadors. While they are responsible for improving customer interaction, they can easily see the value from the customer’s point of view.
Entrepreneurs need to map the connections between culture and business outcomes. So when you plan to improve your enterprise ROX, you should involve your employees too.
3. Create Social Communities
If your customers and employees love your brand, build communities to offer them a common platform for positive association. This will make things easier to fuse EX and CX, meanwhile ensuring that the business shares those values which matter to both the groups. It serves to be a perfect way to bolster engagement with both groups.
4. Plan for Magic Moments
You cannot let the disappointing moments fly away from your customers. To boost customer loyalty it is important to build some discrete moments. It will make them remember you for long and increase your brand loyalty. Just have the corresponding ROX measurements in place to track this loyalty, and ensure your experiences are producing the desired effect.
5. Offer respect and value
Your customers need to feel protected. Hence, when your consumers share their data points with your brand, they simply trust you and expect relevant value in exchange. You have to be very careful about what data you’re using and what you are offering. Try to answer these:
- Is it really required?
- Will it provide value to the customers?
- Are you using it in ways they would expect?
Working on these five sectors will help you acknowledge the demands of your consumers and raise your business’s ROX graph, altogether. Besides, it is worth understanding that measuring ROX is much more than tracing online journeys and using digital turnkey solutions.
It might not provide all that you crave for, but yet it offers better insights on experience conversion rate. Hence, if you have been looking for a valuable tool to learn how consumers actually engage and experience with your brand, you have your answer now.