In business, you’ve likely heard of Return on Investment (ROI), where the success of an investment is measured relative to its costs. But have you heard of the 2.0 version, Return on Experience (ROX)? ROX has become an invaluable metric as the younger generations demand purpose-driven decisions, learning opportunities, and memorable experiences. What was previously considered ‘going the extra mile’ is now a necessity. Whether you’re including innovative gamification to share insights or assembling highly diverse speakers for a panel at an event, perfection is not required. Maya Angelou once said: “It’s not always about what you said or did, it’s about how you made them feel”. So, are the experiences you’re providing creating value?
What exactly is ROX?
ROX, or Return on Experience, is a metric that assesses how customer interactions impact a brand's bottom line. Calculating your ROX score is vital to understanding consumer perceptions and improving relationships. It's a holistic approach that considers customer, employee, and leadership experiences, emphasizing the interconnectedness of business systems (Adjust, 2021).
To calculate your ROX score, assess user interactions, revenue generation, and the impact of product features on the user experience using this formula:
Net Value of Improvements to User Experience
ROX % = ------------------------------------------------------------- x 100
Cost of Investment
Create an ROX framework focusing on touchpoints and measure factors, e.g. cost to implement, customer satisfaction, and Click-Through Rate. Improving one metric can positively influence others, enhance overall customer experience, and boost revenue.
Why are companies implementing ROX?
ROX prioritizes integrity and is a holistic approach rather than a single metric to ensure customer satisfaction and loyalty. It involves reducing costs, saving time, enhancing convenience, and providing added value. Unlike the straightforward ROI, ROX considers various factors across products, services, marketing, and internal policies. Calculating ROX may be more challenging but offers valuable insights into user interactions, effectively guiding businesses in prioritizing future investments and marketing efforts (Contentserv, 2023).
What are the benefits of measuring ROX?
Consumers seek brands that provide experiences beyond just products in today's market. Unlike ROI, which gives a snapshot of individual investments, ROX reveals how improvements in the customer experience boost overall customer value. PwC's survey shows that ROX creates a "virtuous cycle" with factors like pride, influencers, behavior, value drivers, and outcomes. Focusing on these aspects helps businesses understand and measure customer experiences, making clearer growth strategies and investment decisions. Whether your attendees are conference participants, exhibition visitors, or professionals deeply engaged in curated event activities, measuring ROX reveals how to elevate pivotal moments, adding measurable value to your event.
What influences ROX?
Everything is connected. While ROX typically looks at customer interactions, it's crucial to recognize the significant impact of a motivated and engaged workforce. Employee engagement is more than a buzzword; it drives internal operations, setting the stage for exceptional customer experiences. Engaged employees, committed to the organization's mission, play a key role in creating positive customer experiences at every touchpoint. Their passion results in authentic interactions, making customer relationships more genuine. From frontline to behind-the-scenes, everyone contributes to shaping the brand's story. A motivated workforce fosters a positive workplace culture, extending its impact to how customers perceive and interact with the brand. Genuine interactions, driven by employee engagement, become a catalyst for authenticity in customer relationships.
How to start using the experience metric?
To enhance your ROX, start by focusing on your customers' needs and expectations. Prioritize positive customer experiences by understanding their preferences, pain points, and what excites them. Follow this step by defining appropriate objectives. Then, make changes accordingly in various areas, such as website experience, event experience, follow-up experience, and any other aspects that can influence the ROX. By addressing these key touchpoints, you can build a more emotionally engaging and digitally optimized environment, improving your ROX.
Ultimately, understanding and implementing the Return on Experience can positively impact your internal and external business practices. Improving talent retention and customer loyalty not only boosts revenue but also empowers continuous improvement and enhanced connection with all stakeholders. At Meetingselect, connection empowers unified growth. Improving and sharing experiences that build connections helps us evolve as a business, a people, and a planet.
Want to start creating these memorable experiences? Book a meeting or event venue on our platform today!