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Customer Experience ROI Calculator

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What is customer experience ROI?

Customer Experience (CX) ROI measures the return on investment from improving your customer interactions and their overall satisfaction. By understanding this metric, you can evaluate whether your investments in customer experience lead to increased revenue, customer loyalty, and operational savings.

Relevant channels: Salesforce, HubSpot, Zendesk, Freshdesk, Intercom

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How to use this customer experience ROI calculator

To calculate your customer experience ROI, enter the following inputs:

  • Revenue Increase

  • Operational Cost Savings

  • Increase in Retention Rate

  • Customer Lifetime Value (CLV)

  • Technology Costs

  • Training Costs

  • Operational Costs

The tool will instantly calculate your ROI, helping you determine the financial return of your customer experience efforts.

Customer experience ROI formula

An image showing customer experience ROI formula

Customer Experience ROI = [(Net Gain from CX − Total CX Investment Cost) / Total CX Investment Cost] × 100

Here, the net gain from CX is calculated as follows:

Net Gain from CX Improvements = Revenue Increase + Customer Retention Gains + Operational Cost Savings

Customer Retention Gains = Increase in Retention Rate × Customer Lifetime Value (CLV)

The customer experience costs are calculated as follows:

CX Investment Costs = Technology Costs + Training Costs + Operational Costs

Understanding the customer experience ROI result

The ideal customer experience ROI depends on your industry, customer base, product type, etc. In general:

  • A high customer experience ROI indicates that your CX investments are paying off through increased revenue or cost savings.

  • A low customer experience ROI suggests your customer experience initiatives are not yet delivering expected returns and may require adjustments in approach or focus areas. The investment might need serious improvements or reconsideration if the ROI is negative.

When to calculate Customer Experience ROI

  • After implementing a major CX strategy or initiative to evaluate its effectiveness

  • During quarterly business reviews to track customer satisfaction and retention efforts

  • Before deciding on additional CX investments, such as new tools or training

  • After customer satisfaction surveys to align financial impact with satisfaction scores

How to calculate Customer Experience ROI (with example)

Let’s say your company improves its customer experience and records the following data:

  • Revenue increase: $50,000
  • Increase in Retention Rate: 5%
  • Customer Lifetime Value (CLV): $2,000
  • Operational Cost Savings: $15,000
  • CX Technology Costs: $15,000
  • Training Costs: $7,000
  • Operational Costs: $3,000

Here’s how you can calculate your customer experience ROI:

Customer Experience ROI = [(Net Gain from CX − Total CX Investment Cost) / Total CX Investment Cost] × 100

Customer Retention Gains = (5/100) × 2,000 = $100

Net Gains from CX = 50,000 + 100 + 15,000 = $65,100

CX Investment Costs = 15,000 + 7,000 + 3,000 = $25,000

Customer Experience ROI = ((65,100 - 25,000)/ 25,000) x 100 = 160 %

Here, your customer experience ROI will be 160%.

How to improve your Customer Experience ROI

  • Enhance customer support with AI or automation tools for faster responses

  • Conduct customer surveys regularly to identify pain points and act on feedback

  • Personalize customer interactions based on behavioral data

  • Invest in employee training to improve customer-facing communication skills

  • Optimize customer onboarding to boost retention and reduce churn rate

  • Continuously monitor and refine CX strategies based on real-time data

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