Return On Customer

26 January 2010

A good article in this month's Data Strategy magazine, highlighting the benefits of employing a Return on Customer (ROC) metric to complement Return On Investment (ROI) to measure marketing outcomes.

The cover story advocates ROC as it accounts for the Customer Experience when measuring marketing efficiency. ROC recognises that profit is impacted by the customer experience and supports the service - satisfaction - profit chain.

Fascinatingly, the article goes on to answer the million dollar question: "What should our service level be?" Retail Eye captured Net Promoter Score (NPS) results from 31,000 aggregated retail visits and discovered that retailers will fail to get a positive NPS until they are delivering 70% service.