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Understanding the ROI of Customer Experience
Investing in a Customer Experience (CX) program can significantly elevate business performance by fostering greater customer satisfaction, enhancing loyalty, and strengthening brand advocacy. The return on investment (ROI) from a well-implemented CX program varies widely across industries. Several factors shape this variation, such as the nature of the business, the effectiveness of the CX initiatives, and the organisation’s commitment and investment in these efforts at every level.
Our client experience, along with other studies, suggests that businesses with robust CX programs can expect an ROI ranging from This significant return underscores the importance of prioritising CX within your strategic framework. At Insync, we believe that understanding the nuances of CX ROI is crucial for businesses looking to grow and thrive in a competitive marketplace.
Key metrics to measure CX ROI
To accurately gauge the ROI of a CX program, businesses must track a variety of key metrics. These include measures of customer satisfaction or happiness (CSAT), advocacy (NPS), value for money (VFM) and perceived effort (CES). Additionally, financial metrics such as customer lifetime value (CLV), churn rate, and revenue growth attributable to CX improvements are essential.
Success stories: High ROI from CX Initiatives
One notable success story comes from one of our clients, Defence Bank, which achieved remarkable results through its CX-driven, customer-focused strategies in 2024:
- Maintaining an impressive Net Promoter Score (NPS) of +65, reflecting high customer satisfaction, advocacy and loyalty
- 10.1% growth in its loan portfolio, with November and December being two of its highest home loan funding months on record
- Deposits increased by 8.7%, showcasing strong customer trust and engagement
- Winner of 14 awards at the WeMoney Banking Awards, including Defence Services Bank of the Year for the third consecutive year
- Overall return on equity reached 6.3%
These achievements highlight the tangible financial and reputational benefits of investing in a strategic CX program.
Numerous other businesses have witnessed remarkable returns from their CX investments. For instance, a leading retail chain reported a 400% increase in customer retention and a 20% rise in annual revenue after implementing an advanced CX program. Another success story comes from a telecommunications company that saw a 50% reduction in customer churn and a significant boost in customer satisfaction within just six months of launching its CX initiative.
These examples, when combined with the success of our partnership with Defence Bank’, exemplify the ROI potential of CX initiatives and the direct link between exceptional customer experiences and business success.
Challenges in measuring CX ROI
Measuring the ROI of CX programs can be challenging due to customer experience’s intangible nature and the myriad of factors that influence it. One common challenge is isolating the impact of CX initiatives from other variables that affect business performance. Additionally, the time lag between implementing CX improvements and observing tangible financial results can complicate measurement efforts.
Despite these challenges, leveraging advanced analytics and customer feedback tools can provide more precise insights. At Insync, we equip our clients with the necessary tools and methodologies to effectively measure and optimise their CX ROI.
Enhancing ROI through expert CX partnership with Insync
Partnering with CX experts can significantly improve your ROI by ensuring that your initiatives are strategic, data-driven, and customer-focused. At Insync, we wrap dedicated project teams around our clients to provide comprehensive support, from initial assessment to implementation and continuous improvement.
Our innovative approaches and proven frameworks help businesses drive high performance by unlocking the full potential of their CX investments. By collaborating closely with our clients, we ensure that every CX initiative is aligned with their unique goals and delivers measurable results.
We are passionate about empowering organisations to excel in CX and leveraging our expertise to drive meaningful performance outcomes. Contact us today to learn how we can help your business realise the full potential of its customer experience.
Tony Salvage
Managing Director
Tony has an outstanding record as a business leader within dynamic organisations, having worked closely with some of the APAC region’s premier brands (VISA, CBA, Westpac, Qantas, QBE, Lion and Bauer Media). He has previously held senior managerial positions with ORC International, BDRC Jones Donald and AMR Interactive.
As the leader of Insync’s Commercial Practice, he is responsible for transforming customer and employee experience to underpin business performance. He has extensive commercial experience in the financial services, retail and travel sectors. Tony has a particular interest in strategic thinking and problem solving, and is passionate about working collaboratively with clients to drive organisational success.
Tony regularly talks at industry events including Mumbrella, ADMA, ESOMAR Asia and AMSRS, most recently presenting ‘Customer Centricity in the Millennial Age’ at the Customer Experience Management (CEM) conference in Sydney.
