In today's dynamic business landscape, driving customer success goes beyond just delivering products or services. It's about ensuring our customers are getting a high financial return and we are creating lasting value that resonates with them, fostering loyalty, and ensuring sustainable growth.
Two critical metrics can guide us in this mission: Return on Value (ROV) and Return on Investment (ROI). Both need to be at the forefront of a customer success strategy, i.e., our customers should get a high measurable financial return and long-term value from our products and service.
ROI is a financial metric representing the profitability of an investment relative to its cost. It provides a snapshot of financial profitability from a particular initiative, product, or service.
ROI = (Net Profit / Cost of Investment) × 100.
When ROI is significantly larger than 100%, it expressed as a multiple. So 30x ROI is 3000% ROI.
Read how Pure Storage achieves a 30x ROI with cast.app Digital CSMs
ROI's Transactional Lens: ROI offers a transactional view, pinpointing the immediate financial returns from investments. It answers the question: Are our customers gaining financially with our product or service?
ROV is a holistic measure that considers an investment's financial and non-financial impacts. It encapsulates a range of factors, from customer experience and brand loyalty to innovation, overall customer satisfaction, and long-term sustainability.
ROV's Comprehensive View: Unlike ROI, ROV gives businesses a panoramic perspective. It delves into intangible assets, stakeholder relationships, and long-term implications, asking the question: Are we adding value for our customers?
Customer success fosters growth, loyalty, and long-term customer relationships. By leveraging ROI and ROV, customer success can create a comprehensive strategy that touches every facet of the customer journey.
ROV helps us quantify the 'soft' outcomes—those benefits that don't always translate directly into dollars but are vital for sustained business success.
Soft outcomes, often referred to as intangible benefits, are crucial aspects of business growth and stability that might not directly correlate with immediate monetary gains but play an integral role in the long-term success and health of a company. They include your brand perception to customers, customer satisfaction, retention, loyalty, strategic alignment, innovation and adaptability, stakeholder relationships, and risk management and preparedness.
Let's explore how these two metrics can enhance critical aspects of customer success:
When explaining ROV to customer executives, it's essential to highlight that while the tangible, immediate benefits (ROI) of an investment are crucial, the softer, long-term outcomes (ROV) ensure the sustainability, growth, and resilience of the business.
Cast.app ensures your customers are get a measurable return on investment and value. If you are interested in replicating Pure Storage’s 30x ROI, please set up a demo at https://cast.app/demo