measure customer service ROI

How To Measure The ROI Of Your Customer Service?

If you are a part of an established business, determining and maximizing the ROI is the guiding light towards making the right business decisions. The logic goes that a particular activity that generates the highest ROI should have the highest priority. In this sense, the sales and marketing departments are considered as the most valuable parts for most businesses.

Usually, customer service doesn’t figure in the primary ROI-generating activities. First of all, can you even comprehensively calculate the ROI of the customer service? There are a number of underlying problems associated with this challenge.

Let me explain!

Let’s first consider sales.

It’s the overall expense versus overall sales.

Now let’s take the case of marketing.

For an e-commerce venture, it’s the cost of goods sold versus the overall marketing expenditure.

In either of these cases, you can calculate the ROI by a simple mathematical formula.

Measuring the ROI of Customer Service

As you may have already guessed, you can’t find the ROI for customer service by a simple and straightforward graph or formula that will show the total return on your customer service. This is because customer service has a much wider impact on overall business operations. You can also run into trouble if calculating the total impact of customer service.

Rather, in order to calculate the ROI, you need to consider the different activities that are impacted by customer service. By strengthening these ingrained business activities, you can improve the overall efficiency of your business operations. In this blog, we will cover some of those activities that get practically infused into your business operations.

Increasing the customer retention

It’s a public secret that successful organizations don’t reach their revenue goals through closing new deals, but through retaining the existing customers. The most successful companies typically have high customer retention rates.

According to online data aggregation marketing profs, the marketing or advertising agencies look at these different aspects to manage their business.

measure customer service roi

Image Courtesy: Domus Client Needs Poll

Basically, the clients expect businesses to understand their objectives, consistently come-up with innovations and deliver new ideas.

The studies in other fields have shown very similar trends for customer expectations.

Identifying the daily inefficiencies for businesses

For a modern business, all the business operations should be closely co-related and interdependent. Most businesses suffer from having an inadequate process flow that fails to address the individual parts.

If you can improve an individual part of your business process, it will lead to overall process improvements.

By having a proficient customer service program, you can effectively evaluate the multiple aspects of your customer service.

This includes

  1. ROI of your marketing programs
  2. Discovering upsell & cross-sell opportunities
  3. Optimizing different operations
  4. Evaluating employees

Returns on customer Service

A customer service suite will successfully recognize the individual processes that improve your overall business.

Decide on your base for user research

User research is a powerful game changer. Well-Tweaked user research enables you to manage your business situations, gain customer attention, and evaluate market opportunities. In short, it helps you evaluate and manage the diverse way that lands a customer purchase.

Customer experience is the way to manage and divert these business opportunities.

The customer service could be your natural strategy for user research.

The Kapture CRM software facilitates storing different customer information on a centralized database.

This makes user research into a normal part of your daily business process. It helps you collect insights and manage your business process.

Collectively, it helps you understand your customers and give a better direction to your marketing and sales operations. The platform adds different customer types into a common database.

This helps you aggregate and filter the customers based on the right parameter.

Customer experience with service

If there is some feature or service that your customers repeatedly request, incorporating that particular package will lead to more sales. Consequently, this will generate a higher ROI.

They help you to be attuned to the reality of the marketplace and organize the different needs of the market.

Minimizing bad customer Experiences

In recent studies and surveys, customer experience has trumped the alternate operations as the chief revenue generators.

If you can deliver great customer experiences, it will generate higher sales. By 2020, it’s even expected to overtake product and price as the key differentiator.

measuring customer Service


The key to providing a great customer experience is to humanize your business interactions. In the modern era, it can be possible only through great customer service.


It’s usual to see the customer service taking the backseat to the more direct ROI-impactful activities such as sales, marketing, advertising etc. Even if you decide to be careful about counting and account for customer service ROI, you are most likely to only get a limited picture.

The key to selling customer service to oneself or to the management depends on understanding these diverse impacts.

A service CRM platform helps you understand and manage the different aspects of your customer service interactions. The comprehensive 350+ reports cover the diverse correlations within your business process. In this, the service platform helps you measure the true impact of customer service.

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