Return on Experience: The Secret Metric Every Business Needs to Know
Experts of Experience
Deep Dive
What is Return on Experience (ROX) and how does it differ from ROI?
Return on Experience (ROX) is a holistic framework that measures the broader value of customer experience, including brand loyalty, customer retention, and advocacy. Unlike ROI, which focuses on monetary returns, ROX connects customer experience to employee experience and considers investments in intangible initiatives like organizational culture and technology enablers.
Why is it challenging to measure the ROI of customer experience initiatives?
Customer experience is complex and emotional, making it difficult to draw a direct line to revenue. Traditional ROI metrics focus on monetary outcomes, but initiatives like organizational culture or employee engagement are harder to quantify immediately, requiring a more nuanced approach like ROX.
What are the five dimensions of the ROX measurement system?
The five dimensions are pride (emotional commitment to brand purpose), influencers (internal and external brand rallying cry), behaviors (critical positive habits and actions), value drivers (key sources of value for customers and employees), and outcomes (connecting efforts to financial goals).
How does leadership experience impact customer and employee experience?
Leadership experience acts as a catalyst for customer and employee experience. What leaders say and do is amplified throughout the organization, influencing behaviors, products, and solutions. Empowered leadership creates a flywheel effect, driving sustainable success in both customer and employee engagement.
What is high ground thinking in leadership decision-making?
High ground thinking is strategic decision-making connected to a sense of purpose or outcome. It contrasts with low ground thinking, which is transactional and focused on immediate gains. High ground thinking involves making decisions that align with the organization's long-term impact and values.
What are common myths about implementing AI in organizations?
Common myths include: 1) doing the basics first before AI, 2) focusing on one use case at a time, 3) seeking a single vendor solution, 4) assuming AI will always free up people for higher-value work, and 5) believing hiring a chief AI officer is the first step. AI is an accelerator and requires openness, empowerment, and ethical considerations.
What impressed Sujay Saha about a recent customer experience with an airline?
Despite a flight cancellation causing chaos, airline employees remained calm, composed, and humble, even when customers shouted at them. Their dedication to representing the organization with pride, despite lacking empowerment to make big decisions, left a strong impression.
What advice does Sujay Saha give to customer experience leaders?
Customer experience leaders must connect their initiatives to tangible value, whether through anecdotal examples or clear correlations between experience and monetary gains. By focusing on value and making it relatable, customer experience can gain a front seat in decision-making rather than being an afterthought.
- CX is often seen as a non-essential topic by leaders.
- Organizations have created functional areas and roles focused on CX.
- The difference between driving CX discipline at the enterprise level vs. managing CX at the front line is critical.
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