Glossary · Customer Satisfaction
Return on Investment
The financial return produced by an investment, relative to its cost. The language CX needs to speak in the boardroom.
ROI in Practice
Basic Formula
ROI = (Gain from investment - Cost of investment) / Cost of investment × 100%
ROI in CX Specifically
CX ROI cases usually combine:
- Retention uplift: Lower churn × CLV
- Expansion uplift: Higher NRR × account revenue
- Cost avoidance: Lower contact rate × CPC
- Acquisition effect: Higher NPS → more referrals → lower CAC
The most convincing ROI cases are narrow, conservative and evidenced. Overreaching ROI claims damage credibility faster than they win budget.
Frequently Asked Questions
Start with retained revenue: reduction in churn × average CLV. Add expansion uplift from better adoption. Subtract programme costs and tool licences. A credible CX ROI case combines direct (measured) and indirect (estimated) effects, with conservative assumptions on both.
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