How to Calculate ‘Return on Experience’ for your Business
Customers expect white glove service when it comes to having merchandise delivered to their homes. These experiences with a last-mile delivery provider often leave a lasting impression, whether good or bad. However, one in three consumers would walk away from a brand they love after just one bad experience. This statistic should be of concern for companies that sell furniture or other big and bulky items, which usually require in-home deliveries and assembly or installation services.
And considering that an in-home delivery might be the only time an e-commerce customer interacts with a person representing your brand, a positive experience during the delivery can be even more critical.
It’s worth noting that positive experiences and interactions with delivery services will still influence whether they are a return customer. Creating a deeper, lasting value with customers and making them the top priority will help them choose your brand over someone else’s, especially in an already difficult economy.
So how can we track how this impacts your bottom line?
What is Return on Experience?
Return on Experience (ROX) allows a business to examine interactions with their brand, the costs associated with acquiring customers, and how that impacts their bottom line. To measure this kind of behavior requires companies to deliberately assess the ways in which customers interact with their brand, such as through delivery experiences overall, and how those different interactions generate revenue and impact their user experience.
Cutting costs in a last-mile program can leave your customers with a negative impression. But investing in a quality delivery provider not only benefits your revenue and ROX, but also increases your brand recognition. With J.B. Hunt, this front-end spend can lead to lower overall costs and improve the quality of your business, while retaining customers and maintaining safety – and nothing is more important than keeping your customers safe. In other words, by investing up front, you never give them a reason to abandon your brand.
Each business’s ROX will be different, as each one is unique to a business and whatever it creates or provides. But no matter the ROX result, it always provides a company with information about what to invest in and what to change or improve upon.
Why is ROX Important for Last-Mile Delivery?
We all want to maintain and grow our customer base. Keeping your customers happy and engaged means they’ll keep coming back and recommending new people to your brand. But if you aren’t using quantitative measurements to find out how you rate with your customers, you may not have the full picture in front of you. Because if you know just how happy or engaged your customers are, you can find ways to further increase that value to increase your revenue.
Companies in today’s economy are cutting costs where they can. But a negative experience during a delivery might end your relationship with a customer. Cutting costs on your last-mile offering could be the difference between a return customer and one who scares their friends away from your business, and acquiring a new customer is anywhere from five to 25 times more expensive than retaining existing ones.
J.B. Hunt’s Final Mile Services® team can give you peace of mind and positive return on experience with our last-mile delivery service. Safety is a top priority for J.B. Hunt, with extensive background checks already in place, as well as training to ensure that team members leave a positive impression on your delivery customers. We put extra effort in making sure that our drivers have your brand image in mind for every delivery and that they include that image in every aspect of the customer experience.
You can use Return on Experience insights as a building block for investing in future customers and improving existing relationships. Understanding the impact your home delivery program has on your customer is important – and we want to help make your brand the best it can be. Our goal is to disrupt the industry by leading this area so we can continue striving to create the most efficient transportation network in North America.
Want to learn more about how improving your ROX can help your business? Contact us today!