A groundbreaking formula developed by CX Director and doctoral researcher Sirpa Toljander at Dagmar is offering marketing leaders a new way to quantify the business value of customer experience – in euros.

Customer experience has long been recognized as a key driver of growth, but until now, its financial impact has been difficult to measure. Toljander’s formula changes that by translating customer behavior into concrete revenue potential.

“When we understand how customer experience influences buying behavior, advocacy, and customer lifetime value, we can lead it with data. CX mathematics makes the invisible visible – and strategically actionable,” says Sirpa Toljander.

How Much Is a Happy Customer Worth?

Toljander’s formula estimates how much a satisfied customer contributes to business results – directly and indirectly. The hypothesis is based on behavioral probabilities identified in Dagmar’s recent study on Finnish consumers. It focuses on three key ways customer experience drives revenue:

Repeat purchases

• 81% of Finnish consumers return to buy again after a positive experience. A one-time buyer becomes a returning customer.

Cross-selling and upselling

• 49% are likely to try other products or services from the same company. The size and value of the customer relationship grows.

Word-of-mouth recommendations

• 67% share their positive experience with friends, and 62% say a friend’s recommendation influences their own purchase decision. In contrast, only 18% are influenced by anonymous online reviews.

The Formula

Let’s assume the average purchase value is A euros, and a recommendation reaches k people.

Additional revenue per satisfied customer:

A × (0.81 + 0.49 + (0.67 × k × 0.62))

Example:

If A = €100 and k = 5, then:
100 × (0.81 + 0.49 + (0.67 × 5 × 0.62)) =
100 × (1.3 + 2.077) =
100 × 3.377 = €337.70

A single satisfied customer can generate more than three times their original purchase value.

While the formula assumes independence between behaviors, it offers a clear and illustrative way to estimate the business impact of customer experience.

In reality, these behaviors may be positively correlated – for example, a returning customer may also be more likely to recommend the brand.

“The formula effectively uses expected value to demonstrate how customer experience drives additional sales and advocacy. In reality, there is likely positive correlation between these behaviors – for instance, someone who tries another service may also be more likely to recommend the original one, compared to a randomly selected satisfied customer. This can increase variance between individual customers,” explains Data Analyst Tuukka Pallonen.

Want expert support in leading and developing customer experience?

Get in touch: sirpa.toljander@dagmar.fi

Source: Dagmar’s Customer Experience Survey, July–August 2025

Sirpa Toljander is CX Director at Dagmar and a doctoral researcher specializing in customer experience development through design methodologies. Her academic background combines consumer economics, marketing, and service design – disciplines she integrates into practical development work.