You must be tracking key metrics like customer experience (CX), customer acquisition cost (CAC), lifetime value (LTV), churn rate, and more to measure the success of your cross-channel campaigns and their effect on business performance and KPIs.
Tracking these metrics will help you understand and map the marketing strategy for improved ROI. However, one more KPI to consider if you want to achieve consistent, long-term growth – return on experience (ROX).
ROX measures how customers feel about their experience with your brand, product, or service. While customer experience (CX) impacts ROI, ROX goes deeper into how those experiences drive long-term business growth.
Great experiences create loyal customers, and ROX reveals the value of those relationships.
In this post, we will explain ROX’s meaning and how you can integrate it into your mobile app marketing funnel for your business growth in the long term.
What Is Return on Experience (ROX)?
Return on experience (ROX) is a crucial metric that allows marketers to assess how customers interact with their brand and track how their investments in customer experience impact the bottom line.
Rather than the traditional assessment of “money in vs. money out,” which measures how much money a business invests and how much money it earns back in a given timeframe, ROX measures the financial impact of experiences on marketing campaigns across multiple touch points, making it a more scalable, ongoing derivative of ROI.
It’s all about digital experiences, where each interaction with your brand, whether online or through mobile apps, drives long-term value.
Now that you’ve understood ROX’s meaning, let’s explore why it matters.
Why Does ROX Matter?
It’s a given – delivering superior digital CX is essential for acquiring and retaining customers while achieving business growth. In fact, recent research reveals that 90% of customers place the same emphasis on flawless experience as on product quality.
This reflects that customer experiences help companies earn more than revenue — they build relationships.
What’s more? Companies that prioritize customer experience see an 80% increase in ROI.
Now, here’s what ROX’s meaning is – it helps brands understand the value they are getting on investments in customer engagement or brand experience and outlines the digital initiatives to invest in to win.
While ROI measures the value generated by a specific activity, ROX highlights how improvements in customer experience enhance customer lifetime value (LTV) and add to the strong overall business performance.
Tracking and working on improving ROX can thus help take steps to build more meaningful relationships with the target audience.
How to Calculate ROX?
Calculating the ROX score requires assessing the ways users interact with your brand and how these interactions translate into revenue.
The mathematical equation to calculate ROX is –
Working out the net value of improvements to user experience would require you to build a ROX framework that focuses on your customer touchpoints and identifies how your product, services, company culture, and IT infrastructure contribute to positive customer experiences.
Here are a few crucial metrics to consider.
- Customer Effort Score: This metric measures the ease and speed of your services. For instance, it gauges how quickly a mobile app opens or how seamlessly users can create an account.
- Time to Market: This measures how fast a business launches a new product, service, or feature. Agility is crucial to staying competitive and meeting customer needs, making it a crucial factor in determining what successful ROX looks like.
- Acquisition Cost: How much does it cost to acquire new users? Improving the customer experience can help a mobile app grow through word-of-mouth or organically rather than paid promotion tactics.
- Engagement: This metric measures user interaction and helps identify pain points that might lead to poor brand engagement.
- Cost to Implement: This metric tracks how much it costs to enhance customer experience, whether it involves new technology, training, or other investments.
- Customer Satisfaction: This metric gauges how happy users are with a brand, measured across all channels to identify areas for improvement.
- Click-Through Rate: This measures how well calls to action (CTAs) perform.
- Conversion Rate: This metric measures the number of users completing a desired action, such as buying or creating an account.
Improving one metric, like the customer effort score, can positively impact other metrics, such as conversion rates. For instance, enhancing the user experience can streamline the user journey, leading to high engagement and increased revenue. This interconnected approach can help you maximize your ROX score and build lasting customer loyalty.
How Does Return on Experience Work?
As discussed, ROX assesses how customer interactions with your brand influence key business outcomes, including revenue, customer loyalty, and long-term growth.
Unlike traditional metrics like ROI, which focus solely on the financial aspect, ROX offers a broader perspective by linking customer experience (CX) improvements to tangible and intangible benefits.
Here’s how it works.
- Mapping Customer Touchpoints: Identifying the key interactions customers have with your brand across your business website, mobile app, social media, and more. This can help understand how users engage with your offerings.
- Evaluating Experience Metrics: KPIs like customer effort score, customer satisfaction, and engagement can help analyze the effectiveness of the interactions. Leveraging these insights can further help identify friction points and opportunities for improvement.
- Quantifying Impact on Business Growth: ROX examines how improving customer experience influences crucial KPIs like customer lifetime value, conversion rates, and brand advocacy.
- Measuring Returns Against Investments: The cost of implementing CX improvements, including new technology or process optimization, is compared to the value these changes generate, such as increased revenue or customer retention.
- Creating Improved Satisfaction: Continuously optimizing experiences based on ROX insights can help create a cycle of improved satisfaction, loyalty, and financial performance.
ROX vs. ROI
Here’s a quick comparison table to clarify ROX’s meaning and how it differs from ROI.
Impact of Deep Linking on ROX
Customers expect personalized, seamless journeys while interacting with brands across channels. And brands that contextualize user journeys and acknowledge their customer’s history and preferences can convert web visitors into loyal app users.
This can ultimately lead to a loyal customer base that contributes to the long-term growth of a brand, thus enhancing ROX.
Deep linking helps achieve the exact goal as it connects the users to specific in-app content, bypassing unnecessary or unwanted content. This reduces friction points and offers personalized user journeys, thus contributing to ROX.
4 Quick Tips to Improve ROX for Your Mobile App
Here are a few crucial tips to improve ROX.
1. Understand Your Customers’ Needs
Understanding customer’s needs is the first step to reaching the goal of improving ROX. Get it right, and half of your job is done.
Here’s how –
Knowing your customers’ needs can help you create marketing strategies addressing their specific pain points. You can create contextual, relevant, and high-quality content across multiple touchpoints. Besides, it helps you make the interactions seamless.
The math is simple. If you know and offer what your customers want, you ensure acquisition while maintaining a great experience. This can translate into word-of-mouth, good ratings, and brand advocacy, leading to high ROX.
2. Offer Customization and Personalization
Personalization and customization are two crucial pillars of a brand’s success that can lead to long-term growth.
Here’s how to do it –
You can tailor the design of your mobile app based on the user’s preferences, such as showing specific themes, colors, or layouts that align with their interests. Moreover, you can implement an AI system that recommends products based on past purchases or predict items they might want next.
However, you don’t always require major changes for fueling mobile apps with CX.
Take small steps.
Personalization can be as simple as a pop-up message saying, “Hi Ron, how are you today?” or “Hey Ron, did you know we have a ‘buy 1, get 1 50% off’ deal in the winter accessories section?”
Addressing customers by their names is a great example of personalization. It makes them feel valued and special.
What’s more? You can tailor your messages to build customer loyalty and create a sense of exclusivity, thus improving ROX.
3. Encourage Referrals
People trust referrals because they come from reliable sources, and a well-executed referral marketing program can significantly contribute to your ROX.
Encouraging existing customers to refer others can help –
- Boost customer engagement.
- Expand your customer base.
- Strengthen relationships with existing customers.
This can ultimately increase conversions and better customer retention, driving a higher ROX.
4. Foster Customer Loyalty
A loyalty program lets customers earn points for actions and purchases on your mobile app. These reward points can be redeemed for discounts, free shipping, vouchers, and more.
For instance, a fitness app provider can offer loyalty points for completing daily workouts or achieving milestones. Customers can redeem them for premium features like personalized workout plans, exclusive training sessions, or more.
This can help nurture long-term relationships and improve customers’ lifetime value, retention, and ROX.
How Apptrove Can Help Enhance ROX
Our state-of-the-art mobile app analytics platform, Apptrove, offers a range of powerful features that can help drive customer engagement. It helps track and analyze crucial app attribution metrics and create strategies that boost customer loyalty and ROX.
Here’s how Apptrove can help –
- Granular Customer Insights: With Apptrove’s advanced analytics dashboard, you can gain deep insights into customer behavior, preferences, and engagement patterns. This can help make data-driven decisions that improve user experiences, retention, and ROX.
- Personalized Campaigns: Apptrove empowers you to create highly customized campaigns that cater to unique customer needs, thus boosting engagement and experience.
- Deep Linking Suite: Apptrove offers a deep linking suite that allows you to create unique experiences across platforms and channels. It helps direct users to the most relevant in-app content and reduces friction. This way, deep linking-charged CX drives ROX.
- Seamless Integration: You can integrate our MMP with your existing tech stack, thus ensuring smooth operations and customer experience. This supports ROX currency, as improving customer interactions directly boosts long-term business growth.
- Fraud Prevention: Apptrove has built-in fraud protection tools to safeguard your business against cyber threats, ensure a secure customer environment, and maintain trust. This can ultimately enhance customer experience and ROX.
Summing Up
ROX is a vital metric that reflects how satisfied customers are with your brand. It tracks the impact of your efforts on their overall experience.
Although understanding ROX’s meaning and tracking it may not yield immediate outcomes, it is crucial for long-term success. Tracking ROX and improving marketing strategies across touchpoints can strengthen your brand’s value over time.
Furthermore, with Apptrove, you can gain valuable insights to optimize campaigns and enhance CX. It can prove an important tool for driving ROX.
Connect with our team to learn how Apptrove can help you achieve the best business outcomes.
