In its last global market report, global consulting firm, PWC, advised businesses to put more effort into improving how consumers interact with products and services. The firm’s global survey revealed fewer consumers reported being influenced by ads and celebrity influencers, while many said they are encouraged to make purchases based on what other people who have used subject products and services said.
Therefore, how consumers feel about products after use is now bases upon which prospective targets make buying decisions. Hence online product reviews and what friends, neigbours and colleagues say about product and services are the new purchase drivers.
Putting more emphasis on ROX (Return on Experience) – how to make people enjoy products and services – will go a long way to aid market growth. Compared to results from the usual ROI (Return on Investment), the new mantra is preferable.
Citing how consumers have grown in power and influence over companies, John Mawell, top management strategist, emphasised the need for a new metric that will capture how well a company is investing in those who buy or use what the company is offering. Like PWC, he prescribed ROX.
He said, “Traditional return on investment (ROI) metrics are no longer sufficient on their own to determine your company’s success. Evaluating whether your value proposition, capabilities, and portfolio of products and services will create shareholder value requires laser focus on how well you’re meeting higher expectations around the customer experience”.
He added, “Organizations need to map consumers’ purchase journey, isolate the touch points and factors that drive experience, and then invest more in the parts of the company that will move the needle on those interactions and yield measurable results — or return on experience (ROX).”
According to PWC, contrary to what many people believe, only about 17% of buyers surveyed globally said they were influenced to make purchases based on what celebrities or influencers say about any products. Meanwhile 32% of consumers said they are motivated to buy products and services based on product social media reviews.
Going forward, the consulting firm advised, ” Measuring return on experience, or ROX, will help companies understand the return they’re getting on investments made into the parts of the organisation directly related to how customers interact with their brand”.
PWC insight came from a survey of 21000 respondents across 27 territories. The implication for business is huge.
Considering the present interconnection of opinions among online community, it is easier these days to know what people are saying about any particular product. Investing in areas consumers value most while creating a feedback loop to ascertain the level of satisfaction among users is critical for businesses that want to grow market share.
