Customer Service Retention Calculator
Find Out How Much Revenue YOUR Business is Losing
Due to Poor Customer Service!
All businesses rely on customer retention to keep their companies flourishing and growing - after all, the backbone of your success isn't the one time customer but the repeat customer. Repeat customers keep coming back and become the foundation you can rely on. That's why customer retention is so important - if none of your customers return, you will never grow.
Even worse, if you begin losing customers because of poor customer service, your business might fail. That's why customer service training is so important - to be truly successful, you have to establish strong customer loyalty that can translate to repeat business and great referrals. Most people don't realize how much revenue they are losing every year because of poor customer service. Do you?
How Much Revenue are You Losing?
You'll be Surprised! Take this Simple Reality Check:
Calculate the Cost of Poor Customer Service
The cost of poor customer retention is enormous. When customers leave your business they are taking their money to competitors. You've not only lost revenue for your business, you've increased the profitability of your competition! It's a "double whammy" that can irreparably damage your business. Take a look at these eye-opening figures and think about how much your company could lose each year because of poor customer retention.
- Customer Service Formula #1 below will show you just how much you have to lose:
Example:
$20,000 average revenue per customer X 5 lost customers = $100,000 in Lost Revenue - Customer Service Formula #2 will demonstrate how much revenue can be lost based on your operating budget:
Highly effective companies spend approximately 10% of their operating budgets on reworking and fixing customer problems caused by poor service. Ineffective companies spend as much as 40% of their operating budgets on the same thing! Improved customer service can create significant savings in this area! - Customer Service Formula #3 illustrates the cost of employee turnover.
Losing customers is closely correlated with employee turnover. Improving customer loyalty requires improvements in employee retention which results in added savings.
Let's face it, if you are losing customers, you'll soon be losing employees. If you provide customer service training and other tools for your employees so that they can improve customer loyalty, they will feel more confident in their own success and the success of the company. You will have more loyal customers and more loyal employees!
Did You Know that Most Businesses Actually Lose Money on the First Sale to a New Customer?
There is substantial cost attached to acquiring each new customer. All of the dollars spent on advertising promotion, publicity, signage and so on to bring the new customer in the door or persuade the new customer to call the first time. In many, many businesses companies really lose money on the first sales to a new customer.
That's Why It's So Important to Be Successful at Customer Retention and Great Customer Service!
The real profits that keep a business running and growing are in the second, third, and fourth sales to the same customer. Without this repeat business, most businesses fail - and repeat business hinges more on Exceptional Customer Service than with anything else - including the products or services themselves.
Remember . . .
- It costs you five times as much to win a new customer than to keep a current one.
- Your customers are an investment - you need to maximize your investment to maximize your return.
- In a competitive marketplace, the quality of your customer service will make or break your financial success.
- The future of your business depends on your customers and if you're not making them happy someone else will.
Customer service training will improve customer service. Learn how to establish a consistent, branded customer experience!
Disclaimer: The estimates generated by the Customer Service Return on Investment Calculator are for customer evaluation purposes only and not a guarantee of actual results, benefits, or other value.
