Why Your ROI Obsession is F*cking Up Your CX (And How to Fix It)
Zack Hamilton ?? ??
LinkedIn Top Voice | I design experiences that grow Retail and SaaS revenue I Executive, Practitioner, Enabler I 7x’d sales velocity in < 1 year
ROI Is Cute, But It’s Time to Grow Up
Let’s be blunt—if you’re still measuring CX success with ROI, you’re playing a small game. Your board might buy it, but your customers don’t give a sh*t about it—and it’s killing your long-term growth.
Sure, ROI gives you a quick high—just enough to make the board happy and justify your budget. But here’s the reality: ROI doesn’t tell you a damn thing about whether your customers care about your brand or if they’ll ever come back.
Here’s the hard truth: ROI is a transactional metric—it measures dollars in, dollars out. But customer experience isn’t transactional—it’s relational. If you’re still focused on ROI, you’re looking at the wrong scoreboard.
The ROI Trap
ROI is like a sugar rush—quick, sweet, and completely unsustainable. So, you cut WISMO calls by 30% or save a buck with a new shipping carrier. Congrats. But here’s the kicker: your fancy ROI metric doesn’t say a word about the experience your customers are having. ROI doesn’t measure trust, loyalty, or whether your customers feel valued.
In fact, your obsession with ROI isn’t just meaningless—it’s actively screwing up your CX strategy. You’re chasing short-term numbers at the expense of long-term loyalty.
Here’s what ROI will never tell you:
ROI is short-sighted. It’s a financial snapshot of today, not a predictor of long-term success. If you want to build a brand that lasts, stop chasing those hollow numbers and start focusing on what really matters: RoX (Return on Experience).
Enter RoX—The Real CX Power Move
RoX digs deep into what drives long-term customer loyalty and brand love. It’s about understanding how experience impacts the emotional connection your customers have with your brand, and how that drives repeat business, higher CLTV, and advocacy.
Real-world examples:
If your brand isn’t investing in RoX, you’re setting yourself up to be outpaced—fast. ROI is transactional. RoX is relational. The brands that focus on RoX are building loyalty engines that keep customers coming back, spending more, and spreading the word.
3 Player Tips for Establishing and Delivering RoX
Player Tip 1: Define Emotional Loyalty Moments in Your Journey
Identify the key moments where emotional loyalty is built in your customer journey. It might be in the onboarding process, where customers either feel empowered or overwhelmed. Maybe it’s in the post-purchase communication, where they either feel reassured or abandoned. These are the moments of truth that matter.
Actionable Step: Map out the key moments that create emotional connections and build loyalty. Measure those touchpoints, not just operational efficiency, but how they make customers feel.
Player Tip 2: Stop Using Vanity Metrics—Track CLTV and Churn
Ditch NPS and other vanity metrics. Your focus should be on how your CX efforts drive CLTV and reduce churn. These are the numbers that matter. If your improvements aren’t impacting CLTV, you’re focusing on the wrong things.
Actionable Step: Tie every CX initiative to business outcomes like retention, upsell rates, and customer lifetime value (CLTV). Measure impact by how much customers spend, stay, and advocate for you.
领英推荐
Player Tip 3: CX Isn’t Just Your Team’s Job—It’s a Company-Wide Mission
RoX isn’t just a CX department project. To get it right, your entire organization—from marketing to sales to product—needs to be all-in on delivering experiences that drive emotional loyalty.
Actionable Step: Create a cross-functional playbook that involves all departments, showing their role in driving RoX. Every team should know how they contribute to customer loyalty and repeat business.
2 Frameworks for Making RoX Actionable
Framework 1: The Experience Scorecard
Build a scorecard that tracks the emotional engagement at each key stage of your customer journey. Don’t just measure operational outcomes, like “Was the product delivered on time?” Measure emotional impact, like how customers felt throughout the process.
Each touchpoint should be rated based on its emotional impact and long-term loyalty potential.
Framework 2: Real-Time Feedback Loops
If you’re waiting until the end of the quarter to analyze customer feedback, you’re already too late. Set up real-time feedback loops so you can capture customer sentiment immediately. Tools like post-purchase surveys, chat feedback, and social listening give you instant insight into how customers feel—and allow you to act on it quickly.
Actionable Step: Use these feedback loops to make immediate adjustments in the customer journey. The faster you act on customer feedback, the more likely you are to retain those customers. Feedback isn’t just a report—it’s a blueprint for action.
The 1 Question to Guide Your RoX Strategy
As you work to improve RoX, here’s the one question you need to constantly ask yourself:
Which parts of our customer experience are making people fall in love with our brand—and which are pushing them away?
If you can’t answer that question confidently, you’re still focusing on the wrong things. RoX is about understanding the emotional impact of every interaction and using that insight to build long-term loyalty. Forget the surface-level metrics and start focusing on what customers actually care about.
RoX Wins Are Real (And They’ll Set You Apart)
Brands that master RoX aren’t just chasing short-term wins—they’re in it for the long game. They’re building customer loyalty, increasing CLTV, and turning customers into advocates. These are the brands that customers won’t leave, even when competitors offer lower prices or faster delivery.
Here’s what happens when you get RoX right:
The companies that get RoX right aren’t just measuring financial success—they’re measuring emotional connection and long-term impact. That’s what keeps customers loyal, engaged, and advocating for your brand.
If you’re ready to stop f*cking around with vanity metrics and start delivering real, sustainable value with RoX, let’s talk. Hit me up on LinkedIn, and let’s build a customer experience that people can’t stop talking about.
CX Exec & Thought Leader || Complex Problem Solver || Tough Question Asker || Unabashed Truth Teller
1 个月Zack Hamilton ?? ??While there is value to showing ROI, it is not the ideal way to measure your success. We like to look at performance to a brands customer experience principles. Well designed principles are essential for creating a memorable and consistent experiences across the customer journey. Focusing on your core principles enhance customer satisfaction, build loyalty, and drive long-term success. Start with... - How are customers perceiving the experience they have with your brand in regard to your CX Principles combined with other measures (i.e. effort score, NPS, overall satisfaction)? - How are your employees delivering on that your brand’s core Principles This internal and external assessment it critical and often a source for misaligned customer experiences.
Director @ DCHme Limited | FIMI | Customer Experience | Consultant | Project Management | Digital Communication
1 个月I agree that ROI is not a true reflection of the success of any customer experience strategy. It's simply a metric that potentially signifies the impact of customer experience as simple monetary value, In this sense it can be useful lever in at least grabbing the attention of the Senior Management Team. As with all of your post I like your alternate suggestions., in this case using RoX which I believe is much more meaningful way of showing the true “value” of Unf*cked CX?
Doctor of Science | Customer Experience | Principal Journey Management Coach at TheyDo
1 个月Zack Hamilton ?? ?? These are some intriguing points! From my experience working closely with CX teams, I’ve noticed a significant challenge on the other end—about 60% of CX initiatives struggle to demonstrate clear business value. I really appreciate the relational metrics you’ve highlighted, like CLTV and churn rate. These are far more telling of CX-driven business impact compared to relying on NPS alone. I believe both the board and other stakeholders would be encouraged by the positive growth in such metrics. So, rather than questioning the pursuit of ROI, it seems the issue lies in chasing the wrong measure of 'R'.
Co-Founder @SigmaAI | Generative conversational AI for customer support
1 个月absolutely agree! focusing on emotional connections is vital for sustainable growth and long-term customer loyalty.
Customer Experience & Optimisation | AI Fan | Elevate your customer experience and insights
1 个月Totally agree Zack Hamilton ?? ?? ! Here is how I calculate the value of cx and loyalty programs!! #roi of #loyalty #cx https://www.dhirubhai.net/pulse/understanding-value-customers-tim-thijsse-37lxe?utm_source=share&utm_medium=member_android&utm_campaign=share_via