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Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Go Beyond ROI With Return on Experience in Banking
The Financial Brand | Jim Marous | Jul 2, 2021
Measuring return on experience (ROX) across the customer journey is becoming more important as a measure of a company’s success. Moving beyond traditional return on investment (ROI) metrics, financial institutions must evaluate how well they are meeting customer and employee expectations around products and services, digital delivery, cross-channel integration and sustainability.
With differentiation of product and pricing increasingly difficult, and convenience being defined by the simplicity of mobile and online engagement, financial institutions are rethinking how they deliver an exceptional experience across the entire customer journey. With consumer expectations increasing faster than ever, delivering emotionally rich journeys that lead to higher levels of engagement becomes an imperative.
Leading financial institutions are improving experiences by simplifying back-office processes and delivering intuitive solutions across all channels. Research from Forrester found that organizations that invest in experience transformation across people, process and technology demonstrate superior performance, including reduced costs, improved employee satisfaction, increased revenues and greater loyalty.
See: How HR Leaders are Building the Organization of the Future
In fact, Forrester found that experience-driven financial institutions were 1.3x more likely to exceed revenue growth expectations, 1.8x more likely to see improved customer satisfaction scores, and generate 2.5x more website visits compared to other firms. “Banks and credit unions must transform their organizations with an obsession for the customer, with processes that drive continuous improvement through customer insights, people who can design and deliver great experiences, and technology that enables those experiences,” stated Forrester.
Consumer Behaviors Changed by the Pandemic are Sticking
During the Covid shutdown, consumers had to respond immediately and adopt new habits. Many wondered whether these changes – many of which accelerated trends that were already in motion – would be temporary or permanent. PwC’s June 2021 Global Consumer Insights Pulse Survey, conducted in March 2021, found that the most changes are sticking.
Consumers are more price-sensitive, more savings-oriented, more digital and more conscious of the environment. They also want organizations who know them, look out for their well-being, and are “local.”
In fact, research from PwC revealed that companies that make customer experience a priority can charge a premium of up to 16% for their products and services.
See: Financial data unbound: The value of open data for individuals and institutions
The Importance of Return on Experience
Financial institutions are increasingly exploring return on experience (ROX), a metric that captures the results of investments in digital experiences. The benefit of tracking these metrics is that it expands beyond traditional satisfaction scores or product-line measures to provide a global perspective on the bottom-line benefits of delivering superior experiences. This metric can also keep experience projects on track and make them more successful.
The ROX Equation: Net Value of Benefits / Cost of Investment x 100%.
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