ROS

Return on Service

A concept used in business to measure the financial impact of customer service initiatives. While there isn’t a universally accepted formula for ROS, we can define a basic version of it as follows:

This formula calculates the net financial gain (or loss) from service improvements relative to the cost of implementing those improvements. A positive ROS indicates that the service improvements have generated more revenue than they cost to implement, while a negative ROS suggests that the costs outweighed the financial benefits.

It’s important to note that ROS can be challenging to calculate precisely, as it can be difficult to isolate the revenue increases directly attributable to service improvements. Additionally, some benefits of improved service, such as enhanced brand reputation or increased customer loyalty, may not be immediately reflected in revenue figures but can have long-term positive effects on the business.

• Abbreviation: ROS