Return on Relevance (ROR) – The New Measurement of Customer Engagement

Return on Relevance (ROR) – The New Measurement of Customer Engagement
If organizations aspire to drive top and bottom lines through customer engagement, they need a new set of metrics to measure consumer relevancy and engagement.

We are hearing a lot about how leading brands such as Amazon are clearly winning in today’s digital economy by providing memorable customer experiences. To win the hearts and minds of today’s consumer, brands have to deliver during any given moment of truth. That is, they have to be able to provide highly personalized and relevant experiences – when and where customers engage with them. And they have to do it in a way that keeps customers happy.

In my many interactions with business leaders, I consistently hear about their aspirations to provide a more relevant experience to their customers. But executives are struggling with how to quantify the impact of digital on their organization. The core issue is a majority of organizations are adopting traditional business measurements (ROI) for digital initiatives.

If organizations aspire to drive top and bottom lines through customer engagement, they need a new set of metrics to measure consumer relevancy and engagement. But first, managers need a firm contextual understanding of what is relevant to consumers. Today’s consumer is in charge, however, there are a number of drivers that affect whether or not any particular engagement will be more or less relevant. These include:

Your company’s success during moments of truth with customers determines whether you’ll have a loyal customer or a former customer. One starts to get a clear picture of how daunting a task it is to embark on any consumer engagement initiative when you throw in a measurement challenge for digital returns, the fact that many organizations do not have adequate visibility into consumer brand preferences, sentiment, and preferred modes of engagement and demand triggers.

Enter Return on Relevancy (ROR)

Return on Relevancy (ROR) focuses on specific metrics that measure a customer’s experience, level of engagement, responsiveness, sentiment, usage and the impact on revenues, marketing campaign offers, churn, total cost of acquisition and net promotor score (NPS). Based on multiple digital initiatives with a number of companies, I’ve found the following ROR metrics to be successful.

Is your organization prepared to successfully provide relevant experiences in a measureable way utilizing digital investments?

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  • The proliferation of brands that can make it harder to choose
  • The excess of information that leads to consumer overload
  • The existence of multiple points of engagement a consumer can leverage at any given point in time
  • Higher expectations of good customer experience
  • Limited attention spans in today’s digital world








    1. Levels of Consumer Engagement (LCE): Have a new loyalty promotions application for mobile you’re piloting? Focusing on what exact components consumers are using the most and what behaviors they are exhibiting will tell you the exact level of engagement.

      How to track LCE: API traffic log analysis will provide key indicators as to what is resonating with consumers and what is not.

      How to improve LCE: Take an existing customer use case and apply it to current UI and offers displayed. Track consumer level of engagement. Based on LCE you can identify behavioral patterns that improve upon LCE in your solution via testing and refinement.

      Number of Repeat Visitors (NRV): This is the actual number of repeat visitors to your offer. Determine the level of relevancy based on how many NRVs are long-term loyalists and revenue growth prospects via collection, tracking & analysis of NRVs utilizing marketing analytics & reporting.

    2. Velocity of Users (VOU): This is the daily number of new users and can be consumers as well as applications connecting to other devices or mobile applications. The primary value of VOU is in the initial pilot phase or test to determine if your new product, promotional offer or service is relevant enough for consumers to “opt in” and sign up with their credentials.
    3. Overall Data Volume (ODV): Organizations need to capture and recognize the overall data pertaining to consumer engagement including likes, product views, primary functionality consumers engage in, number of opt-ins, numbers of offers, offers accepted, and then combine this with traditional customer transactional data to find correlations. To ensure successful measurement of ODV to your ROR, a consumer engagement solution should be developed with the ability to collect, track and measure the ODV utilizing predictive analytics and reporting.
    4. Offers Accepted (OA)/ Offers Declined (OD): For any consumer engagement solution focused on either rewarding existing customers for loyalty or selling a new product, service or promotional offer, Offers Accepted (OA) & Offers Declined (OD) are critical to measuring your ROR for direct impact on revenues. This is a very straightforward set of metrics and can be determined by collecting the number of consumer opt-ins, views and opt-outs in API data records from content marketing, digital and mobile marketing offers.
    5. New Customer Activations (NCA) NPS: New customer activations is nothing novel in the world of KPIs, but measuring the number of actual new customers that complete a Net Promoter Score (NPS) with a positive rating based on your company’s metric can have a significant impact on ROR for not only net new revenues but long term customer loyalty and the probability of increased customer acquisition from new customer referrals.