What Is Customer Service ROI and How to Measure It?
Departments are usually divided into profit centers and cost centers in the business world. Where profit centers are bound to produce direct profit for the company, cost centers refer to the part which does not directly generate profit and costs money to the company to operate. Due to limited funding, businesses often distribute more money from their budget to areas that are profit centers. This often puts the customer service teams in a situation where they are left overworked and underpaid. Since they cannot cut short their assigned work, they can still have a stronger role to play in the budget meetings, if they can show a solid return on investment. Concluding, customer service ROI should be a standard measurement for every team. WHAT IS THE RETURN ON INVESTMENT (ROI)? The Return On Investment (ROI) is a measurement method that compares earnings to the expenditure of a company. ROI can be calculated using a simple formula [(Profit – Expenditure)/Expenditure] x 100. Let’