This year, over 80% of organizations are planning to overhaul technology that helps to improve the customer experience (CX). In addition, half of these organizations are planning on increasing spending on technology that increases ROX in 2020.
After all, delivering a better customer experience brings many tangible business benefits. Some of these include increased web and mobile conversion rates, greater retention, increased average order value, better customer lifetime value, loyalty programs, and much more.
As such, it is essential for your business to adopt the best possible experience management strategy for your customers. To succeed in this, it is important to understand one key metric; Return on Experience (ROX).
So, what is ROX and how does it affect your business?
What is Return on Experience? (ROX)
To understand what ROX is, it helps to familiarize yourself with the term ROI. These two acronyms affect one another, but they are not the same thing.
Return on Investment (ROI) is a term that refers to how potentially financially rewarding an investment may prove to be. ROI is a percentage or ratio that can be calculated by dividing the benefit received from a particular investment by the cost of the initial investment.
Until recent years, this has been the main approach to measuring the success of business initiatives and establishing the financial impact of brand awareness.
Marketers have developed a more practical metric to look at things from the consumers’ side - Return on Experience, or ROX, which measures consumers’ purchase experiences.
ROX is a concept that measures actions, analyzes customer behavior and satisfaction, and helps business owners better cater to their customers. By allowing businesses to gauge the true value of personalized customer experiences, ROX is arguably an even more compelling and relevant metric than ROI or just ROI alone.
But what does that look like in action?
ROX Incorporates Emotion to Positively Affect Your Brand and Business
One major factor that the ROI metric overlooks is emotion. ROI does not care about how your customers feel about your brand, it only cares that you are making a profit. And there is nothing wrong with that.
However, by focusing on creating a positive customer experience, you will be able to drive a high positive emotional response from your customers. Since emotion leads to engagement, this will positively impact your brand.
And when that happens, your business prospers anyway.
The Importance of Referrals
To lead a market, you have to do more than just sell products to consumers.
It is important to go the extra mile to ensure consumers make recommendations to others. This lends not only to repeat purchases in the future but potentially new customers.
If you take advantage of every opportunity available to enhance the customer experience and make customers more engaged with your business, your consumer will turn into free marketing as he/she shares his/her experience with others and recommends your products to others.
One thing is clear: providing a positive customer experience has immense payoffs and returns. So, what is the best way for a business to improve its ROX?
How to Boost Your Business’ ROX
Here are some popular ideas and strategies that savvy marketers recommend for improving your business’ ROX:
Understand Your Consumers’ 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 look at their behaviors and the actions they take, recurring order specifications and the like.
While this will help you track how, when, where and why consumers shop, it also enables you to deliver a tailored, seamless, end-to-end experiences.
Blend CX and EX
It turns out that employee experience, or EX, has a large effect on customer experience. For all businesses, employees act as brand ambassadors to consumers to varying extents. In order for employees to improve customer interactions, it’s important to see the value they deliver from the point of view of the customer.
Entrepreneurs should map out the connections between business outcomes and culture. This means that when you have a plan to improve your ROX, you should involve your employees in the process from the beginning.
Create Social Communities
If both employees and customers both love your brand, then try building communities around that commonality. This is the perfect way to begin fostering a vibrant work culture and customer loyalty all at once.
This will also make it easier to fuse existing CX and EX efforts while ensuring that both groups share which values matter most to them.
The customer experience is not just a clever marketing buzz term, it’s an important business development strategy that allows a business to not only attract customers – but retain them. There are multiple technology solutions that can help a logistics or supply chain entity improve their CX and EX.
If you’d like to discover how technology solutions can improve your CX and ROX, contact the team at Redwood Logistics.