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"What is the return of experience?"

Excerpt: In addition to ROI (Return of Investment), ROX (Return of Experience) is a metric that should play a big role in e-commerce. Customer experience determines up-selling or cross-selling and also post-purchase reviews. The direct link between customer perception, customer experience and actual behavioral changes is quantified by ROX. The engagement of the employees in the service departments of the companies is also included in the consideration of the ROX. A PIM helps deliver the best quality data across all touchpoints.

One of the key business indicators is the ROI (Return on Investment), which provides information about the profitability of a company. In this article, we have already reported on the role ROI plays in PIM projects. Today, we take a look at ROX (Return on Experience) and explain how a PIM helps to increase this financial indicator.

Return on Experience is a not so well-known metric, but it plays a significant role in connection with customer centricity (CX), especially in e-commerce. The focus here is on the idea of service, because as differently as customers act, information should also be available at different touchpoints

In one sentence, this means – Always think from the customer’s perspective: At which point can customer satisfaction be improved or increased? Anyone who is a customer knows that service is an important factor. This was already the case in stationary retail and is still a requirement today in omnichannel business. Finally, the competition is only a click away. If you want to keep your customers in the mood for online shopping, you have to do a number of things to do so.

Information is the gold in the company

Consistent, detailed and product-related information must be available to all touchpoints. However, this also requires that the customer data are collected, linked and evaluated holistically. After all, the process can be improved at the points where the customer does not feel well taken care of. This is not new either: those who are frustrated buy less from the company, or not at all. There are plenty of reasons to abandon a purchase.

According to a study by ARITHNEA and Adesso (2020), B2B customers want comprehensive customer portals with complete history and information as well as personal, individual treatment! 

Speed is becoming increasingly important, too high shipping costs (50%) are a shopping killer, and too long delivery times (47%) and the missing of essential product information (42%) are also at the top of the wish list of these customers.

"Companies theoretically make their marketing campaign decisions based on based on existing customer data. But you can see in practice that there are still discrepancies in the evaluation of channels. It is therefore important to pay attention to the customer's customer needs when addressing them, and to place the information in the channels in which the customers perceive it as an added value."

Source: Markus Lünsmann, Head of Line of Business Microsoft, Adesso SE

How is the ROX calculated?

Product information is important for the return of experience

Essential product information is important for customers, so using a Product Information Management helps to significantly increase the Return of Experience.

The benefits are multiple:

  • Transparency for the customer saves costs and lowers the return rate 
  • Personalization is an added value when it is based on product-related data
  • Merging customer data from different sources improves data quality by using appropriate tools, such as a PIM.

Adesso recommends companies use marketing automation to create highly individualized customer experiences. This information can be used to determine the ideal time and the appropriate channel to engage customers.

However, product reviews from other customers are also becoming increasingly important. According to a GfK study, half of all online shoppers are influenced in their purchase decision by the reviews of other buyers.

Conclusion:

Positive experiences while shopping online ensure that customers are happy to buy from the company again and ideally recommend it to others. This favors cross-selling and upselling and increases sales. By using a PIM, it is possible to identify the touchpoints of the customer journey that need to be optimized in order to drive success. 

If you would like to learn more, schedule a free appointment with one of our experts. We look forward to it.

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