A CX Manager’s guide to proving ROI–fast.
This is the second article in a series of Futurelab columns for consulting.de, focused on making the business case for Customer Experience (CX). In the first part (LINK) we talked about why CX Managers need to prove ROI at all(reminder: it is because ROI discussions are budgeting discussions).We also briefly talked about several approaches to the topic.In this article, we will tackle the first steps towards a pragmatic ROI modelling.
“So, you are telling me if we do this,we will sell more?”
The CFO asks:“How much more revenue will this generate?”
Before you answer, the COO jumps in:“Can it free up headcount in support?”
The sales add:“If we do it, will they buy more?”
If CX worked like a magic wand, everyone would already live in Schlaraffenland. But it doesn’t. It is a layered topic influenced by multiples takeholders. And it takes time.This is why we are trying to chart a course to the land of plenty–for people who care only about keeping their own lawn tidy.Understanding how to address each one of these“What’s in it for me”questions is key to a successful CX budget discussion.
How can you find out what is needed? Ask yourself these questions:
1.What are our company’s priorities right now?
Are we focused on growth, cost-cutting, retention, efficiency, or transformation? Your ROI case needs to align with strategic objectives, i.e.what leadership actually cares about today.
2. Who is asking for the ROI–and why?
Is it Finance, Operations, Marketing, the CEO? Different company functions see value in different ways. Speak their language.
3.Is this about getting buy-in–or getting budget?
Are you trying to inspire action, win a debate, or justify an investment? A simple story may be enough for one, a full model required for another.
4.What kind of proof will be most convincing?
Are they looking for hard financial metrics, benchmark comparisons, customerquotes, or quick wins? Match evidence to mindset, not just to method.
5.Do I have access to relevant data–and if not, what’s a credible proxy?
Can you pull service cost numbers, retention rates, or NPS trends? If you find it difficult to get even the basic numbers, this is your starting point.
6.What action do I want them to take after this conversation?
Approve a project? Prioritise a roadmap? Change how they work? Define your ROI case in such a way it clearly points to the next best action towards the decision you need.
One, two, ROI
Quick reminder:Return on Investment is a financial metric that helps companies decide whether or not the effort is worth the outcome.The simplistic formula of ROI for Customer Experience efforts looks like:
CX ROI = (Business gains from good Customer Experience−CX investment costs) / CXinvestment costs
Let us see how this calculation can be done in practice.
Case Study: Organic Brews café.
The Organic Brews café notices that those customers who understand that they are buying organic coffee sourced directly from the producer are becoming frequent, loyal customers. One manager believes that they need to train their employees better so that they explain to customers what the values are and the benefits of organic coffee farming. Another one thinks that a loyalty app that awards10th coffee for free would be better for money. How should they compare investments into these two CX initiatives? Should they create an emotional connection through staff engagement and storytelling,or behavioural reinforcement through incentives? Let’s look at ROI after one year:
Option 1: Employee Training (Emotional Connection)
Investment: €3,000 (staff training on storytelling and brand purpose).
Expected Impact:
150 customers feel a stronger emotional connection to the location.They visit 1.5 more times per month. The average customer ticket is €4, but in this case they and spend €2 extra per visit, opting for a higher quality brew.
Revenue Gain:
€3 extra per month × 12 months = €36 more per customer
150 customers × €36 per customer = €5,400
ROI:
(€5,400 − €3,000) / €3,000 = +80%
Option 2: Loyalty App (Habitual Behaviour)
Investment: €4,000 (app build + free coffee rewards)
Expected Impact:
150 customers use the app. Each one visits 2 more times per month, creating 24 extra visits a year). They spend the same €4 per visit as they used to, therefore resulting in €96 more per year per customer.
Cost of free coffee reward: €9 per customer/year, therefore our Net gain per customer = €87.
Revenue Gain:
150 customers who use the app × €87 = €13,050
ROI:
(€13,050 − €4,000) / €4,000 = +226%
At this moment, it looks like the app is generating a higher ROI than the training. But is that the whole story?
Customer Lifetime Value: The complete picture.
We started this article with a set of questions: what is the purpose of your ROI calculation? The CX Manager needs to understand how Customer Experience reflects the company objectives. And companies have more targets than just revenues and profits for the current quarter. This is why the CX Manager needs to understand the long-term strategy as much as the short-term financial gains and losses.
Let’s continue to look at ROI, now with along-term perspective in mind. In the case of Organic Brews, the café’s owner is not just running a coffee shop.Their long-term objective is to grow the business sustainably, by promoting ethically sourced, organic coffee and strengthening direct relationships with producers. That means they are not just looking at short-term sales spikes, but at building a loyal community of customers who share their values, advocate for the brand, and support the mission over time.
And they know that the real value of a customer is not just what they spend this month. It is how often they come back, how loyal they remain, and how many others they bring with them over time.Similarly, they know that employees who receive training stay with the business longer and are more fulfilled personally.This is where Customer Lifetime Value (CLV) comes in.
CLV shifts the focus from single transactions to sustained relationships. A loyal café customer who comes in twice a week for years and brings their friends is worth far more than just their spend. Let’s revisit the two groups of customers:
- The app-driven customer increases frequency–they come back more often to earn rewards. But if a competitor offers a better deal, they may easily switch.
- The storytelling-driven customer connects emotionally with the café’s mission–they believe in the values, feel recognised by staff, and stay loyal even if a cheaper option appears.
Over three years, this difference compounds. The emotionally connected customer not only returns, but becomes a brand advocate, contributing to:
- Higher CLV (through repeat visits and add-ons like merchandise or events)
- Lower acquisition costs (thanks to referrals)
- Reduced price sensitivity (they are not just here for the deal)
And the impact is not just on customers.When staff are trained to tell stories and connect with customers, their own job satisfaction rises. They are no longer just processing orders–they are ambassadors of something they believe in. This tends to lead to:
- Lower employee churn, i.e. fewer hiring and training costs
- Higher service consistency, i.e. fewer complaints and errors
- Stronger internal culture, i.e. better customer experience over time
Let’s not take into account other expenses such as app maintenance or new staff training into account yet and just look at the CLV comparison.
| Metric / Effect | Storytelling Customer | Loyalty App Customer |
| Average Customer Visits per Week | 2.0 | 2.5 |
| Average Spend per Visit (€) | 6.0 | 4.0 |
| Customer Lifetime (Years) | 4 | 4 |
| Referral Rate (New Customers per Customer) | 0.5 | 0.2 |
| Retention Rate (%) | 90% | 70% |
| Employee Churn Impact (€ saved) | €1.000 | – |
| Total Estimated CLV (€) | €1.872 | €1.040 |
So,what begins as a training programme,ends up influencing both top-line growth and bottom-line efficiency–not just this year, but for many to come.Storytelling customer of Organic Brew café have a higher lifetime value than Loyalty App customers. The café owner can now make a more informed decision.
In the next parts of our series, we will talk more about which metrics you can use for your ROI calculations, and the difference between calculations for different industries and business types (B2C vs. B2B).
