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A new ROI to go with the new ROE

by Nancy Arsenault on June 13, 2016

For decades the ROI – return on investment – what the priority focus and it remains an essential element of a sustainable business.  It’s a simple formula: ROI = (Gain from investment – Cost of investment)/Cost of investment. How much of a return is needed to sustain and grow a business varies what what one does with the profit (aka surplus for government) varies.

ROI-ROE.001Then came along the ROE – return on emotion – as we began to better understand the power of an emotional connection to a product, service, brand, company. But there’s more. Some folks have shared with me that they thought the ROE should be return on engagement (ROEn), which kept me reflecting and thinking as we look at our our business. Personally I always thought engagement was a ‘how’, a method to evoke an emotion.

Today Brian Solis published a blogpost on Marketing to Generation Z introducing the idea of a return on interaction (ROIn).  In essence another ‘how to’ in contributing to the foundation return on investment!

Fascinating when you stop to think about it.  I created this visual to capture the interaction – all leading to the end state – a strong, loyal customer base that feeds the overall sustainability of the company. Food for thought and I’d love to know what you think.

 

 

 

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