Imagine you own a business, and you want to invest in customer experience (CX) to increase customer loyalty and boost sales. To help you decide how much to invest in CX, you use a customer experience ROI calculator.
The ROI calculator takes into account your current customer experience performance, the cost of implementing changes, and the expected return on investment based on the changes.
Using the Customer Experience ROI calculator, you determine that investing $10,000 in CX initiatives will generate an additional $30,000 in sales over the next year. This result helps you to make an informed decision about your CX budget and keep it on track.
In 2023, the 80% of businesses that do not prioritize exceptional customer experience (CX) as part of their brand identity will eventually demand proof of why investing in CX improvement is necessary. Some of these businesses will disband CX teams that cannot provide data.
This is bad news for the 54% of CX professionals whose teams cannot demonstrate the ROI of their projects.
Convincing executives that the investment will pay off is one of the main challenges change-makers encounter when moving their firms toward customer-centricity. Unfortunately, anecdotal evidence is sometimes less reliable than calculations that link customer-focused activities to practical and reliable results.
Moreover, spending money proactively to create pleasant experiences pays off enormously rather than spending money to recover from a negative experience. When CX leaders evaluate the potential ROI of CX and invest in a quality experience to develop customer relationships, they serve as the bridge to foster clear communication between departments.
9 Best Customer Experience ROI CalculatorsTo Manage Your CX Budget
20% of businesses that value excellent CX as a component of their brand identity will award CX teams for generating a profit in 2023. These teams' leaders will join one-fourth of their CX leader colleagues currently occupying C-suite positions.
So, you need to understand how much money a CX program will save or bring in for the business. Use these tools to demonstrate and communicate the worth of CX:
1. Net Promoter Score (NPS) and Customer Acquisition Cost (CAC) Calculators
Customers can be surveyed using an important CX metric, NPS, which asks them a straightforward question: "On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?" Promoter customers are given a score of 9 or 10, 7 or 8 are meant for passives, and detractors are scored from 6 to 0.
This Thematic resource covers all the information you require to translate insights into action when calculating the ROI of Customer Experience. It includes spreadsheets to figure out how NPS affects company income and CAC. It determines the return on investment for CX investments by relating its NPS to revenue and CAC.
The user needs to have a few details ready, such as the total number of customers, a breakdown of the percentage of customers that fall into each NPS category, and the average spend per customer aggregated for each NPS category.
On the other hand, to calculate CAC, you'd need the details mentioned above plus the data about the current CAC via marketing, the cost of CAC via referral, the percentage of customers acquired through marketing vs. referrals, and an estimate of how many customers promoters actually do refer.
The overall cost of sales and marketing efforts, as well as any property or equipment required to persuade a consumer to purchase a good or service, is known as the CAC and is a crucial business metric. Given that, if your customer experience improvement efforts are sufficient, your CAC is likely to be low.
2. Customer Care Impact Calculator
Customer service has a significant influence on how customers perceive their overall experience. Therefore, the likelihood that a customer will remain loyal can be increased by lowering the level of effort required by them.
The opposite is also true: failing to deliver a low-effort experience can quickly encourage disloyalty. Thus, your customer service team needs to be highly efficient.
The calculator from Qualtrics allows CX leaders to calculate the impact of their customer care services. This calculator will work best if some numbers are already known.
The number of calls users receive every day, the average cost per call, the average handling time (AHT), the total number of agents, staff attrition, first call resolution (FCR), and working days are all inputted by the users.
Next, the calculator asks you how much you want to improve your rates of call reduction, employee attrition reduction, FCR, and AHT reduction.
Once the user enters these details, the calculator instantly computes the impact of operational movements, staff training efficiency impact, and the total impact in dollars if you focus accordingly on experience for about 24 months.
3. Self-Service Authentication
Organizations typically have a customer authentication procedure to safeguard customer accounts from fraud and other security risks. However, your consumers and your representatives may find caller authentication time-consuming and annoying. The calculator from Talkdesk focuses on reducing fraud in the call center.
By rapidly and securely confirming the identity of callers using voice biometrics, it eliminates the irritation caused by time-consuming verification procedures. Therefore, this automated approach also frees up agents to concentrate on more complicated problems.
This self-service authentication can help you decrease your AHT per month and save in call costs per month and per year. Users can enter their industry, the typical number of incoming calls, the usual proportion of calls handled, and other information into the spreadsheet. CX leaders may download an Excel spreadsheet, fill out its blanks, and immediately see where savings can be realized in exchange for a modest quantity of personal data.
4. NPS, Cross-Selling, and Online Reviews ROI Calculator
As mentioned above, NPS is a crucial CX metric. Apart from that, cross-selling is about offering customers similar products at the same time they make a purchase.
Not only does it raise revenue, but it also improves customer experience and engagement, which all contribute to developing strong and enduring relationships with customers. Moreover, online reviews direct customer experience enhancements and can inspire significant organizational improvement.
The calculator from InputKit calculates the ROI from these three parameters: NPS, cross-selling, and online reviews.
The user simply needs to adjust the slider according to the company's annual revenues. Instantly, the calculator comes up with the impacts of cross-selling, increasing NPS, and an increase in online reviews in dollars.
The calculator bases its calculation primarily on three logics. Firstly, it considers that sales grow by 1% for every 7 NPS points added. In the first 12 months, its customers' NPS typically rises by 5 points. Therefore, it boosts sales by 0.71%.
Second, an increase of 1 rating on Google increases the revenue by about 7%. In the first 12 months, customers typically enhance their rating by 0.2 stars. As a result, sales are rising by 1.4%.
Third, 9.4% of customers check the box for additional service on average, and 10% of those customers make a purchase. Cross-selling boosts consumers' sales by 0.94% on average.
5. Customer Defection Calculator
The average business loses 10% to 25% of its customers annually. If these companies had known a customer was that dissatisfied before they defected, most of these cases could have been avoided.
Defections may occur for business-related or non-business-related reasons. The latter indicates that the customer will leave for factors other than low satisfaction, such as relocation, death, or switching to a substitute. But most of the time, a consumer will leave due to something the company controls, such as bad service, high prices, or lengthy queues.
The customer defection calculator from Opiniator calculates the effect of this customer defection through Excel spreadsheets. It calculates the loss in profits before displaying the ROI (return on investment) of feedback programs that can naturally help reduce online complaints and this desertion.
The user has to add the data for their own company. The calculator then calculates the anticipated financial impact of a customer leaving your business and the impact of unfavorable reviews on social media.
The next step is to assess the rise in revenue and reputation that results from reducing customer churn through real-time feedback.
6. Customer Center Service ROI Calculator
It is incredibly beneficial to have a competent customer center service workforce. So, CX executives can use the calculator from Agent Assist to estimate the effect of their customer support offerings. The results will be obtained from this calculator if some numbers are known.
You would have to include information about your present contact center staff, the volume of chats you receive each year, and the amount of time you believe your agents spend looking for solutions. Then, use the sliders or input the desired number for the percentage of actual chat time spent per day, the availability of live chat, and the average agent compensation.
Once you've entered the details, the calculator will compute the percentage of your team's time spent searching for answers, the new average chat length, and the number of chats your team can handle per year.
Moreover, the calculator comes up with figures about per chat labor reduction cost, total chat capacity extension, number of agents required, and the total cost after adding Agent Assist to your team.
7. Omnichannel Solutions ROI Calculator
Omnichannel customer experience is crucial for organizations to gain the necessary insights into customer interactions and behavior throughout a customer's life cycle. It is a cohesive process that streamlines all customer interactions across many touchpoints to create a consistent brand experience.
In just a few seconds, the ROI calculator from Zendesk will help you discover how omnichannel solutions can improve your support, whether by providing your customers and agents more time or raising your ROI.
The user needs to enter their industry, the number of agents, annual call volume, annual email volume, and annual chat volume. The calculator will then compute the rates of cost per contact, phone average handle time, chat average handle time, FCR, and the projected ROI, along with the total cost savings.
8. CX Cost and ROI Calculator
The secret to investing in the customer experience is picking the business metrics ideal for your particular business and market.
This Pointillist resource comprises the business measures that are most frequently used to calculate the ROI for customer experience. It outlines the procedures for calculating CX returns, costs, and ROI, as well as how to apply the results to create a fruitful CX program.
The Forrester Customer Experience Index serves as one of the bases for the calculator's judgment. According to an analysis of this index, the largest businesses in some industries can generate additional revenue of up to $100 million for each point that the Forrester Customer Experience Index rises.
Pointillist provides several equations and approaches to produce practical, usable numbers. It details measures like cross-sell/upsell, revenue, customer retention, satisfaction, and cost-to-serve while balancing the books and even includes computations that can be used as examples.
9. ROI of Customer Retention Calculator
The retention rate is a metric to determine how many of your customers stick with your product over time. Customers who have used your product previously and recognize its value are more likely than new customers to purchase additional items, keep using it, or continue paying for subscriptions.
Companies that create the best customer experiences can therefore see the results of their labor reflected in the retention rate.
The ROI calculator from Customer Thermometer compares the value of business retention attained through a successful CX program. This calculator focuses on the massive opportunity for customer retention.
The user needs to enter the average dollar amount each customer spends annually and the percentage of the customer base they lose annually. Then, moving the slider and clicking "Calculate ROI" would inform you about the ROI of the customers you could retain with efficient CX tools and strategies.
The return on investment from customer experience investments is substantial. The secret is using statistics to support the ROI of CX and tell a compelling tale. Focusing on the appropriate indicators and effectively evaluating data to make decisions are crucial to demonstrating ROI. Change-makers can use the calculators and tools described above to highlight the essential elements of CX and prove the ROI of CX.
Customer Experience ROI calculators are an invaluable tool for keeping your customer experience budget on track. By helping you to accurately calculate and track the return on investment for your customer experience initiatives, you can ensure that you are investing wisely and getting the most out of every dollar. By utilizing Customer Experience ROI Calculators, you can maximize your customer experience budget, ensuring that you are providing the best possible customer experience while still keeping your budget in check.