In today's ever-changing business landscape, the traditional ROI model may no longer be sufficient to ensure lasting success and competitive advantage. To truly thrive, businesses must embrace a new set of metrics that align with customer values and aspirations. I challenge the conventional ROI model and present ten innovative metrics that can transform your business and guarantee sustainable commercial success.
- Return on Inspiration – Setting our colleagues up for success
To deliver exceptional customer experiences, we must first inspire our own employees. Focusing on employee engagement is crucial, considering that a staggering 85% of the global workforce is disengaged. By prioritising employee experience, we lay the foundation for true customer-centricity. Brands like Hyatt Hotels and Timpson empower their employees, fostering a culture of inspiration and improving outcomes for both customers and the business.
- Return on Integrity – Building trust with our customers
The VW emission scandal serves as a reminder of the importance of consumer trust. Brands like Patagonia, renowned for their social responsibility, have gained a strong foothold by demonstrating unwavering integrity. Trust is a valuable currency in today's market.
- Return on Inclusion – Creating a business that better reflects our customers
By catering to the needs of diverse customer segments, businesses can tap into significant opportunities. Neglecting the 70 million disabled individuals in the US or the 14 million in the UK means missing out on a multi-trillion dollar market. Brands like Specsavers stand out by proactively reaching out to customers with disabilities or mental health issues, showcasing empathy and understanding.
- Return on Image – Demonstrating true social responsibility
Consumers increasingly seek sustainable options and guilt-free consumption. Brands that provide choices like renting, buying second-hand, or purchasing recycled products gain an edge. Decathlon and even fast-fashion giant Zara have embraced these models, attracting more customers and expanding market share.
- Return on Intervention – Promptly resolving issues for customers
Shifting from transactional customer service to holistic customer care fosters long-term relationships. This lifetime value approach prioritises customer satisfaction and goes beyond resolving immediate concerns. Businesses that adopt this strategy enjoy enhanced customer retention and loyalty.
- Return on Interaction – Being present where our customers want us to be
Increasing touch points and expanding opportunities for customers to engage with a brand leads to stickiness. Omnichannel retailers witness improved average order values, profitability, and lifetime value compared to single-channel sellers. Embracing marketplace solutions and collaborating with third-party sellers further bolsters customer retention and attracts a broader audience.
- Return on Improvements – Shifting from mere transactions to becoming a service provider
Customers today seek more than just products—they seek experiences and solutions. Adopting a service-led approach and providing additional support for product usage and installation resonates with time-constrained consumers. Home Depot stands out for enriching the customer experience by offering relevant services alongside their products.
- Return on Involvement – Increasing customer loyalty through personalised messaging and engagement
Brands that actively involve customers in their journey foster stronger connections. Hilton Doubletree's warm, freshly baked cookie upon arrival and CDLP's discount offer on the second purchase are examples of driving meaningful engagement. Encouraging customers to participate instils a sense of ownership and loyalty.
- Return on Insight – Leveraging actionable insights to improve performance rather than just reporting data
While we often focus on measuring outputs, understanding the "why" behind the performance is crucial. Instead of solely analysing conversion rates or sales figures, digging deeper into customer behaviour and preferences allows us to make informed decisions. By unraveling insights, we can enhance our offerings and avoid repeating mistakes.
- Return on Innovation – Continuously advancing and improving our offerings at pace
Innovation requires taking calculated risks, even in the absence of a proven business case. The traditional ROI model may hinder the adoption of new initiatives. Trusting intuition and recognising the emotional connection customers have with brands can guide us in navigating uncharted territory.
By reevaluating our metrics and embracing these ten new ROIs, businesses can resonate with consumers on a deeper level, drive sustainable growth, and seize market opportunities. To explore these innovative metrics further, listen to the podcast and download the ebook "The 10 New ROIs" at www.10newrois.com. This valuable resource offers insights, real-life examples, and actionable strategies for business leaders and marketers looking to create meaningful connections with customers and drive sustainable growth. Let's reimagine success together!
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