How much could you save by automating customer support? This guide walks you through the calculations with real benchmarks, so you can build your own business case for AI customer service.
Quick ROI Summary
Before diving into details, here is what typical businesses see:
| Business Size | Monthly Support Volume | Estimated Annual Savings |
|---|---|---|
| Small (1-10 employees) | 500-2,000 tickets | $15,000 - $60,000 |
| Medium (10-50 employees) | 2,000-10,000 tickets | $60,000 - $250,000 |
| Large (50-200 employees) | 10,000-50,000 tickets | $250,000 - $1,000,000+ |
These savings come from three main areas:
- Labor cost reduction (50-60% of savings)
- Increased agent productivity (25-30% of savings)
- Reduced customer churn (15-20% of savings)
Step 1: Calculate Your Current Support Costs
Labor Costs
Formula:
Annual Labor Cost = (Number of Agents × Average Salary) + Benefits + Management Overhead
Input your numbers:
| Component | Calculation | Your Numbers |
|---|---|---|
| Agent salaries | [X agents] × [$ salary] | ________ |
| Benefits (typically 25-35% of salary) | [Salary total] × 0.30 | ________ |
| Management (typically 15-20% of agent costs) | [Agent costs] × 0.15 | ________ |
| Total Labor Cost | Sum of above | ________ |
Example:
- 5 agents × $45,000 = $225,000
- Benefits: $225,000 × 0.30 = $67,500
- Management overhead: $225,000 × 0.15 = $33,750
- Total: $326,250/year
Tool and Technology Costs
Include:
- Help desk software (per-seat licensing)
- Phone system/VoIP
- Chat software (if separate)
- Knowledge base
- Quality assurance tools
Example:
- Help desk: $50/seat × 5 seats × 12 months = $3,000
- Phone system: $35/seat × 5 seats × 12 months = $2,100
- Other tools: $2,000/year
- Total Tools: $7,100/year
Training and Onboarding Costs
Include:
- Initial training time
- Ongoing training
- Training materials and resources
- Turnover and re-training
Formula:
Training Cost = (Hours per new hire × Hourly rate × Turnover rate × Number of agents)
Example (25% annual turnover):
- 40 hours training × $25/hour × 25% turnover × 5 agents = $1,250
- Ongoing training: 20 hours/year × 5 agents × $25/hour = $2,500
- Total Training: $3,750/year
Facility and Infrastructure
If applicable:
- Office space allocation
- Equipment (computers, headsets)
- Utilities (portion attributable to support)
Total Current Support Cost
Your calculation:
| Category | Amount |
|---|---|
| Labor | ________ |
| Tools | ________ |
| Training | ________ |
| Facilities | ________ |
| TOTAL CURRENT COST | ________ |
Step 2: Calculate Cost Per Ticket
Formula:
Cost per Ticket = Total Annual Support Cost ÷ Annual Ticket Volume
Industry benchmarks for cost per ticket:
| Channel | Low | Average | High |
|---|---|---|---|
| Phone | $6 | $10 | $15+ |
| $3 | $6 | $10+ | |
| Live Chat | $4 | $7 | $12+ |
| AI/Chatbot | $0.50 | $1.50 | $3 |
| Self-Service | $0.10 | $0.50 | $1 |
Your calculation:
Your cost per ticket = $________ ÷ ________ tickets = $________
If your cost per ticket is significantly higher than benchmarks, there is more room for improvement.
Step 3: Estimate Automation Potential
Not all tickets can be automated. Estimate your automation potential by ticket type.
Typical Automation Rates by Inquiry Type
| Inquiry Type | Automation Potential | Your Volume (%) |
|---|---|---|
| FAQ/General Questions | 80-95% | ___% |
| Order Status/Tracking | 85-95% | ___% |
| Account Information | 70-85% | ___% |
| Password Reset | 90-95% | ___% |
| Returns/Refunds (Simple) | 70-85% | ___% |
| Billing Questions | 60-75% | ___% |
| Technical Support (Basic) | 50-70% | ___% |
| Technical Support (Complex) | 20-40% | ___% |
| Complaints | 10-30% | ___% |
| Sales Inquiries | 40-60% | ___% |
Calculate Your Blended Automation Rate
Formula:
Blended Automation = Σ (Ticket Type % × Automation Rate)
Example calculation:
| Ticket Type | % of Volume | Automation Rate | Weighted |
|---|---|---|---|
| FAQ | 25% | 85% | 21.25% |
| Order Status | 20% | 90% | 18.00% |
| Account | 15% | 75% | 11.25% |
| Returns | 15% | 80% | 12.00% |
| Technical | 15% | 50% | 7.50% |
| Complaints | 10% | 20% | 2.00% |
| Blended Rate | 100% | -- | 72.00% |
Your blended automation rate: _______%
Step 4: Calculate Expected Savings
Direct Labor Savings
Formula:
Labor Savings = Current Labor Cost × Automation Rate × 0.85
(The 0.85 factor accounts for AI platform costs and remaining human oversight)
Example:
- Current labor cost: $326,250
- Automation rate: 72%
- Savings: $326,250 × 72% × 0.85 = $199,611/year
Your calculation:
$________ × ____% × 0.85 = $________
Productivity Improvements
Agents who remain become more productive because:
- AI handles simple queries, humans handle complex
- AI provides suggested responses
- AI surfaces relevant information automatically
Typical productivity improvement: 20-35%
Formula:
Productivity Value = (Remaining agent costs) × 0.25
Example:
- Remaining labor after automation: $326,250 - $199,611 = $126,639
- Productivity gain: $126,639 × 0.25 = $31,660/year
Response Time and Customer Retention
Faster response times improve customer retention:
- 67% of customers cite fast resolution as key to satisfaction
- AI responds instantly (under 5 seconds vs. minutes for humans)
- Each 1% improvement in retention can mean significant revenue
Formula (simplified):
Retention Value = Annual Revenue × Expected Retention Improvement × Profit Margin
Conservative estimate: 0.5-2% reduction in churn
Example ($2M revenue, 1% churn reduction, 30% margin):
- $2,000,000 × 1% × 30% = $6,000/year
Total Expected Savings
| Category | Your Calculation |
|---|---|
| Labor savings | $________ |
| Productivity improvement | $________ |
| Retention/revenue | $________ |
| TOTAL EXPECTED SAVINGS | $________ |
Step 5: Calculate AI Platform Costs
Typical AI Customer Service Pricing
| Platform Type | Monthly Cost | Best For |
|---|---|---|
| Basic chatbot | $50-200 | Low volume, simple FAQ |
| AI platform (per-seat) | $50-150/seat | Small teams |
| AI platform (volume-based) | $0.50-2/resolution | High volume |
| Enterprise AI | $500-5,000+ | Complex requirements |
Estimate Your AI Costs
For volume-based pricing:
Annual AI Cost = Monthly tickets × Automation rate × Cost per resolution × 12
Example (5,000 monthly tickets, 72% automated, $1/resolution):
- 5,000 × 72% × $1 × 12 = $43,200/year
For seat-based pricing:
Annual AI Cost = Seats needed × Monthly cost × 12
Seats needed is typically lower than current agent count due to productivity gains.
Your AI cost estimate: $________ /year
Step 6: Calculate Net ROI
Net Annual Savings
Formula:
Net Savings = Total Expected Savings - AI Platform Cost
Example:
- Total savings: $237,271 ($199,611 + $31,660 + $6,000)
- AI cost: $43,200
- Net savings: $194,071/year
ROI Percentage
Formula:
ROI % = (Net Savings ÷ AI Platform Cost) × 100
Example:
- $194,071 ÷ $43,200 × 100 = 449% ROI
Payback Period
Formula:
Payback Period = AI Platform Cost ÷ (Net Monthly Savings)
Example:
- $43,200 ÷ ($194,071 ÷ 12) = 2.7 months
Step 7: Your Complete ROI Summary
Fill in your calculations:
| Metric | Your Number |
|---|---|
| Current annual support cost | $________ |
| Expected automation rate | ____% |
| Estimated annual savings | $________ |
| AI platform annual cost | $________ |
| Net annual savings | $________ |
| ROI percentage | ___% |
| Payback period | ___ months |
Real-World ROI Examples
Example 1: E-commerce Company
- Size: 50,000 tickets/year, 4 support agents
- Current cost: $280,000/year ($5.60/ticket)
- Automation achieved: 68%
- AI platform cost: $24,000/year
- Net savings: $142,000/year
- ROI: 492%
Example 2: SaaS Startup
- Size: 8,000 tickets/year, 1.5 FTE
- Current cost: $95,000/year ($11.88/ticket)
- Automation achieved: 55%
- AI platform cost: $9,600/year
- Net savings: $32,000/year
- ROI: 233%
Example 3: Healthcare Provider
- Size: 25,000 tickets/year, 8 agents
- Current cost: $520,000/year ($20.80/ticket)
- Automation achieved: 45% (conservative due to compliance)
- AI platform cost: $36,000/year
- Net savings: $163,000/year
- ROI: 353%
Beyond Cost Savings: Strategic Benefits
Quantifiable Benefits Not in ROI Calculator
Extended hours coverage:
- Current: 9am-5pm support
- With AI: 24/7 coverage
- Value: Competitive differentiation, global customer support
Scalability:
- Current: Each 30% growth requires new hire
- With AI: Same platform handles 10x volume
- Value: Predictable costs during growth
Data and insights:
- Every AI conversation is automatically analyzed
- Identify product issues, customer trends, opportunities
- Value: Faster product improvement, better decisions
Qualitative Benefits
- Consistent quality (AI never has a bad day)
- Instant response (always under 5 seconds)
- Multilingual capability without additional hires
- Reduced agent burnout (handling more interesting problems)
- Better customer experience (faster, more accurate)
Common ROI Mistakes to Avoid
Mistake 1: Assuming 100% Automation
Reality: 60-80% is realistic for most businesses. Always plan for human handling of complex issues.
Mistake 2: Ignoring Implementation Costs
Include in your calculation:
- Setup and integration time
- Content creation for AI training
- Testing and refinement period
- Change management
Mistake 3: Not Accounting for Learning Curve
First 30-60 days typically show lower automation as AI learns. Full benefits realize after 90 days.
Mistake 4: Forgetting Ongoing Optimization
Budget 2-4 hours/month for:
- Reviewing AI performance
- Adding new content
- Handling edge cases
Mistake 5: Undervaluing Customer Experience
The calculator focuses on cost savings, but experience improvements often drive more long-term value through retention and referrals.
Next Steps
If ROI Looks Promising
- Trial period: Most platforms offer 14-30 day trials
- Pilot channel: Start with highest-volume, most automatable channel
- Measure baseline: Know your current metrics before starting
- Track actual vs. projected: Validate ROI assumptions with real data
If ROI Is Marginal
Consider:
- Volume may be too low for significant savings
- Ticket complexity may limit automation
- Current operations may already be efficient
- Revisit when volume increases
Calculate Your Savings with Oxaide
Ready to see real numbers for your business?
Oxaide provides:
- Transparent pricing (no surprises)
- 60%+ automation guaranteed
- 14-day free trial to measure actual results
- ROI tracking built into the dashboard
Or book a call to review your specific ROI potential: Schedule consultation