Experts of Experience: Return on Experience – The Secret Metric Every Business Needs to Know

Podcast Information:

• Title: Experts of Experience
• Host: Lauren Wood
• Presented by: Salesforce Customer Success
• Episode: Return on Experience: The Secret Metric Every Business Needs to Know
• Release Date: January 8, 2025

Introduction to Return on Experience (ROX)

In this insightful episode of Experts of Experience, host Lauren Wood engages in a profound discussion with Sujay Saha, the founder and president of Aquis Cortico X, a boutique experience-led strategy and transformation firm. The conversation centers around the innovative concept of Return on Experience (ROX), a holistic metric designed to transcend the traditional Return on Investment (ROI) by encompassing the broader value derived from customer and employee experiences.

Sujay Saha introduces ROX early in the conversation:

[00:00] "A lot of times customer experience is seen as a fluffy topic... We've come up with a concept called Return on Experience, a holistic approach that considers the broader value of customer experience."

Historical Perspective on Customer and Employee Experience

Sujay provides a historical lens on how customer and employee experience have evolved within organizations. He notes that over the past two decades, the focus on these experiences has intensified, leading to the creation of dedicated functional areas and roles such as Chief Experience Officers. However, he emphasizes the importance of genuine ownership over mere titular representation.

Sujay Saha reflects:

[02:52] "It's a very popular word... we have to really delve deeper to understand if you truly own experience or just have a title around it."

Measuring Experience: ROX vs ROI

Lauren Wood raises a critical point about the challenges of quantifying the ROI of experience initiatives. Sujay introduces ROX as a multi-dimensional metric that integrates various aspects of customer and employee satisfaction, loyalty, and advocacy, thereby providing a more comprehensive understanding of the value generated.

Lauren Wood asks:

[04:24] "It's not always easy to tell what is the ROI of investing in this... how do we approach that topic?"

Sujay Saha explains:

[05:07] "ROX is a dynamic company-wide metric that connects customer experience to employee experience and considers investments in intangible initiatives... It ensures that we're not just looking at monetary outcomes in a vacuum."

He further elaborates on ROX by categorizing it into five dimensions:

1. Pride: Emotional commitment to brand purpose and strategy.
2. Influencers: Creating an internal and external brand that resonates.
3. Behaviors: Embedding critical positive habits and actions into organizational culture.
4. Value Drivers: Connecting key sources of value to financial goals.
5. Outcome: Linking these dimensions to tangible business results.

Leadership in Driving Experience

The conversation shifts to the pivotal role of leadership in fostering a culture that prioritizes both customer and employee experiences. Sujay asserts that leadership experience acts as a catalyst, influencing the overall engagement and effectiveness of the organization.

Sujay Saha emphasizes:

[14:56] "Good leadership experience is a catalyst for the rest of the enterprise. Leaders' actions and decisions are amplified throughout the organization, directly impacting employee and customer experiences."

Lauren Wood concurs, highlighting the necessity for leaders to collaborate cross-functionally to align on values and purpose, which in turn fosters a safe and connected environment for employees.

Lauren Wood shares her perspective:

[19:10] "Leadership experience isn't something I talk about that often. But you are going to send me on a rant now because it's a big one."

Purpose and Strategic Thinking in Organizations

The discussion delves deeper into the interplay between purpose-driven leadership and strategic thinking. Sujay introduces the concepts of High Ground Thinking versus Low Ground Thinking, advocating for leaders to consistently align their decisions with the organization's overarching purpose.

Sujay Saha defines:

[27:14] "High ground thinking is strategic thinking connected to a sense of purpose or outcome. Low ground thinking is transactional thinking, focused on immediate decisions."

Lauren connects this to the need for leaders to bridge the gap between high-level strategy and day-to-day operations, ensuring that the organization's purpose remains central even as profit motives intensify.

Lauren Wood states:

[28:13] "Purpose is not a one and done thing... It takes time, it takes nurturing, it takes repetition... to embody it and take that forward."

AI and Experience

Sujay addresses the integration of Artificial Intelligence (AI) into the customer and employee experience framework. He debunks common myths surrounding AI adoption, advocating for its role as an accelerator that can enhance both basic and complex operations when aligned with organizational values.

Sujay Saha advises:

[36:12] "AI is an accelerator and it can help you in taking care of even the basics very quickly and fast. Don’t completely ignore the trend."

He underscores the importance of ethical AI deployment, emphasizing alignment with the organization's purpose and values to ensure that AI initiatives bolster rather than hinder the desired experiences.

Practical Recommendations for Customer Experience Leaders

When asked for actionable advice, Sujay encourages customer experience leaders to connect experience initiatives to tangible value. By demonstrating how enhanced experiences drive significant business outcomes, leaders can secure organizational buy-in and prioritize customer experience as a core component of strategic decision-making.

Sujay Saha advises:

[46:48] "Connect it back to value... Keep the value first and experience as a means to getting to the value."

Real-World Example and Empowerment

Sujay shares a poignant personal experience highlighting the critical role of employee empowerment in delivering exceptional customer service. Despite facing a challenging situation with flight cancellations, the air hostesses maintained composure and went above and beyond to assist passengers, exemplifying organizational pride and dedication. However, the lack of empowerment to make decisive actions (e.g., involving security) underscored the need for better tools and authority for frontline employees.

Sujay Saha recounts:

[41:53] "The air hostesses and ticket counter folks were taking care of these customers with humility and composure... I wish these people were empowered to call security and get these customers out of the way."

Lauren reflects on this, emphasizing the importance of empowering employees to mitigate issues effectively without compromising their ability to uphold the organization's values.

Conclusion: Embracing ROX and Purpose-Driven Leadership

The episode concludes with a reaffirmation of the necessity for organizations to adopt a Return on Experience framework, integrating it seamlessly with their strategic objectives and leadership practices. By doing so, businesses can cultivate environments where both employees and customers thrive, driven by a clear sense of purpose and aligned values.

Lauren Wood wraps up:

[48:37] "Customer experience, or experience in general, is a must-have, but it's the leader's job to communicate why that is. And value is really the connecting point there."

Sujay Saha echoes the sentiment:

[48:37] "Connect it back to value... Customer experience will get more of a front seat in a lot of decision making."

Key Takeaways:

• Return on Experience (ROX) offers a comprehensive metric that integrates customer and employee satisfaction, loyalty, and advocacy, providing a more nuanced understanding of value compared to traditional ROI.
• Leadership Experience is crucial in fostering a culture that prioritizes and effectively manages both customer and employee experiences.
• Purpose-Driven Strategic Thinking ensures that organizational actions remain aligned with overarching goals, thereby enhancing both employee engagement and customer satisfaction.
• AI Integration should be approached ethically and strategically, serving as an accelerator to enhance operational efficiency and experience quality.
• Employee Empowerment is essential for delivering exceptional customer service, highlighting the need for leadership to provide the necessary tools and authority to frontline staff.

By embracing these principles, organizations can navigate high expectations and leverage emerging technologies to deliver consistent, exceptional experiences that meet and exceed customer and employee expectations.