Calculating the NEW cost of a lost customer

 

A few years ago we published a White Paper on the Cost of a Lost Customer, and why it is so important to resolve customer conflict. I had also written several articles about it. But, although the math is still sound (and somewhat scary), it is quickly becoming outdated.

We’ve created an exciting new calculator that you can use to identify both the real and potential cost of each customer you lose.

It begins, of course, by understanding your average CLV, or Customer Lifetime Value. This is a calculation of how much money your average customer is likely to spend with you over a lifetime.

As of this moment, 1 out of every 6 men, women and children are on Facebook (these are North American numbers – in some other markets these numbers are even higher), and each have an average of 130 friends. The average Twitter user has 128 followers and the average LinkedIn profile holder has 60 contacts. Now add to this all the blogs, Myspace users, YouTube watchers, etc, and you can start to see the enormity of our influence. “Word of mouth” has become “World of Mouth.”

The potential impact on a business when you start spreading the word about poor experiences is now huge, and that’s what this new calculator shows us. When you see the numbers, you may feel they are somewhat extreme. Okay, fine. If you don’t believe them, cut them in half. They are STILL big numbers. Even if you think I’m 90% full of baloney, they are STILL big numbers.

Or, on the other hand, you might be one of the over 10 million people who viewed United Breaks Guitars, and think that we’ve actually understated the cost of a lost customer….

Calculating the NEW cost of a lost customer
Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on LinkedIn
Share on whatsapp
Share on WhatsApp
Share on pocket
Share on Pocket

Comments? We'd love to hear them!

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You might also be interested in:
Posts by category
Outstanding
Customer Service Training
The best customer service training programs

Contact us today to learn how The Belding Group can help you stand out with outstanding customer service.

Do you have your copy of The Journey yet?

Winning at Work Newsletter

The Workplace Success Newsletter

read in over 100 countries

Awesome tips to help you succeed
Free – once a week in your inbox!
(And 100% spam-free!)

(Want to see the kind of tips you’ll be getting before signing up? You can find them here.)

Winning at Work Newsletter

The Workplace Success Newsletter

read in over 100 countries

Awesome tips to help you succeed
Free – once a week in your inbox!
(And 100% spam-free!)

(Want to see the kind of tips you’ll be getting before signing up? You can find them here.)