Carlos Arámbula

RSR Research: The ROI of Customer Passion

June 21, 2010

FROM RETAILWIRE:
At an executive summit on cross-channel recently, Nikki Baird asked a colleague if he believed that there is an ROI to be had around customer passion. What's the closest a retailer can get to measuring ROI around customer satisfaction? Is measurement necessary?      [more...]

Customer satisfaction and ROI are not the same thing but are definitively related.

Customer satisfaction is a qualitative and comprehensive response garnered with time, repeat purchases, multiple products, and corporate responsibility. It's a fluid and continuous process, while ROI is quantitative measurement with defined beginning and end.

A successful brand will have positive qualitative and quantitative measurements.

I feel the video, while entertaining, is rather superficial. Simply asking "why?" to all respondents would provide an honest answer and understanding of their concept of brand. As to the respondents who claim they don't love a brand, they are being dishonest. Everybody has brands that are an intricate part of their lives, and everyone fits into a pattern that can be communicated to and persuaded to purchase a product or service.

While an ROI can't be placed on customer satisfaction, the general health of a brand is defined by its role in the consumer's life. As fluid as that role can be, it is ultimately used in whether or not a marketer decides to continue the life (development, brand extensions, advertising) of a brand. Measurement is crucial.