In today’s digital environment, brands interact with customers across multiple touch points, on multiple channels and along unique journeys. In fact, customers are increasingly involved in helping co-create the brand experience when they share on social media. Traditional metrics like return on investment no longer capture the variety and breadth of interactions created by today’s marketing activities. Instead, many marketers are turning to a new measure, return on experience (ROX), to better quantify the impact of their activities.
Metrics like return on investment consider revenues and costs, but don’t calculate intangibles created by storytelling, social sharing, event engagement or the multiple other touchpoints that may impact a customer’s purchasing decisions. As a result, too much attention on ROI may lead marketers to prioritize less effective tactics. How should you compare the return of a banner ad campaign to an in-store event if you don’t also calculate the opportunity for social media sharing and customer interaction?
Great customer experience not only makes customers feel appreciated, it results in tangible benefits. Customers are willing to pay an average of 16 percent more for a great experience, according to a PwC survey. And a bad experience will drive them away: nearly a third will leave after one bad experience and 59 percent after several.
A recent PwC report declared, “Experience is everything.” Return on experience helps marketers understand where and why their customers are engaging with the brand. It considers not just sales, but awareness and engagement that can benefit a brand over time. To get started, brands need to understand and map their customer journey, so they can identify and address potential experience gaps.
Increasingly, we find our clients need a customized measurement plan that ladders up to business goals and internal expectations while also demonstrating the value of today’s integrated campaigns. Measurement plans need a fresh look to make sure they effectively capture the results of all marketing activities. Metrics like ROX will help brands weigh the value of interactions with customers – as well as customers’ interactions with each other.