How Tracking Return on Experience Benefits Your Industry and Audiences
It’s time for businesses to take traditional ROI calculations a step further, and measuring your Return on Experience (ROX) is the way to do just that. We’ve already walked you through an introduction to Return on Experience with our easy-to-read white paper, which contains simple definitions, an actionable formula and examples of ROX in action. On top of that, we’ve organized two ROX-related webinars to share even more details, one that shows how to start tracking Return on Experience and another that will focus on tips to increase those benefits.
In that first webinar, we showed viewers some of the metrics that matter to different departments within your organization as well as a simple formula that you can use. It concluded with examples of ROX in action, illustrating the wide-ranging benefits that measuring Return on Experience has for different industries and users. This is what we want to focus on now: providing more context on what tracking ROX looks like for your company.
Example #1: Measuring ROX for a High Tech Customer Experience
A high tech company wants to build a digital customer experience rich in personalization that simplifies self-service for its users. After pouring $100,000 into implementing the solution and training customers on how to use it, the organization wants to confirm that their investment generated value. They knew that they were removing friction points with real-time support case updates, product recommendations and on-demand access to FAQs, but what tangible benefits were these use cases unlocking? Measuring their ROX helped them translate these changes into business value.
In an average year, the organization generated $75,000 in direct sales conversions from their old one-size-fits-all website. The new experience has personalized pages that surface recommended purchases based on users’ behaviors, resulting in a hyper-relevant experience. After one year, the company’s direct sales sourced from their experience jumped to $250,000, representing a value add of $175,000.
Additionally, this high tech firm’s customers file an average of 2500 support cases per year, costing $200/case to manually resolve issues. The new experience’s self-service capabilities, including on-demand access to forums, discussions and other knowledge, dropped the cost per case to $125. In an average year this saves the company $187,500.
See how implementing an experience and tracking ROX benefits this high tech company?
- Investment: $100,000
- Added value: $175,000 in added sales + $187,500 in cost savings
- ROX = (175,000 + 187,500) / (100,000) x 100
Example #2: Measuring ROX for a Manufacturing Partner Experience
Let’s explore how measuring ROX helps businesses in another industry. A manufacturing company invested in an integrated digital experience that united multiple partner brands. They invested $200,000 in a new PRM that presented four brands in one community while enabling features like streamlined order visibility, integrated service and personalized dealer dashboards. Tracking Return on Experience showed the company exactly how much the partner experience was benefiting both their dealers and the business as a whole.
Among the 1000 partners spread across the four brands, the average dealer spend was $300 (for a total of $300,000). More intelligent insights based on user behaviors surfaced related products that resulted in more cross- and up-sell opportunities. This increased the average spend to $500 (total of $500,000), adding $200,000 in value thanks to the new experience.
Similarly, the personalized dashboards and integrated knowledge bases resulted in more engaged partners. The organization values these types of users at $600/partner, as their increased engagement led to them being more likely to purchase products and act as brand advocates. In the old website, the company had 300 engaged partners who read knowledge articles and participated in forums (value of $180,000). Now, 700 of their partners are categorized as “engaged,” which is valued at $420,000 and an increase of $240,000.
The manufacturer’s ROX is illustrated here:
- Investment: $200,000
- Added value: $200,000 in increased dealer spend + $240,000 in more engaged uses
- ROX = (200,000 + 240,000) / (200,000) x 100
Example #3: Measuring ROX for a Financial Services Employee Experience
When companies choose to invest even more in their digital experiences, the potential for even greater returns also goes up. Following a merger, a financial services company desired a one-stop shop employee experience for loans, renewals and account management, but needed to make a sizable investment of $325,000 to achieve their desired goals. Measuring Return on Experience enabled them to see exactly what value was generated by undergoing their digital transformation.
In the pre-merger system, employees had to visit multiple sites and complete paper-based tasks to get trained and onboarded. The organization onboarded 800 new people in an average year at a cost of $750/person to fully support and enable new hires to get started ($600,000 expense). The new employee experience included guided onboarding, digital support and self-service access to knowledge articles, resulting in a new cost per hire of $250 ($200,000/year, savings of $400,000).
At the same time, the new unified system streamlined employee processes and surfaced better analytics about customers and prospects. Sending and receiving documents could be done digitally instead of physically, and all loan and renewal documents are now completed with an automated signature process. Together, these enhancements generated $500,000 in cost savings. Finally, access to better customer data provided insights into more cross- and up-sell opportunities. In the old system, employees generated roughly $100,000/year in these opportunities, but in the new community that number increased to $550,000 for a value add of $450,000.
With a higher starting investment, it is easy to see the large boost in ROX that the financial services company received from their new employee experience.
- Investment: $325,000
- Added value: $400,000 in onboarding savings + $500,000 in savings on other processes + $450,000 in added up-sell
- ROX = (400,000 + 500,000 + 450,000) / (325,000) x 100
When you start tracking the benefits of your Return on Experience, your company gains the insights to see exactly how your digital experience drives business results. Regardless of your industry or the types of audiences your experience targets, understanding the ways to measure and maximize ROX helps you delight users, unlock value and position your experience for prolonged success.