The Benefits of Superior Service

Lost Customer Revenue

A.Annual revenue $_________________

B.Total number of customers _________________

C.Percentage of dissatisfied customers x ____________%

D.Number of dissatisfied customers (C x B)= ________________

E.Number of dissatisfied customers apt to switch x __________.25%

F.Number of dissatisfied customers who will switch= ________________

G.Average revenue per customer ( A / B) $ ________________

H.Revenue lost through poor service (F x G) $ ________________

Additional Revenue From Word of Mouth

I. Number of people satisfied customers will tell (B x .87 x 2.5 people) = ________________

J. Number of prospects who buy due to positive word of mouth assuming 1 in 50 told (I x .02) buys = ________________

K.Potential new revenue resulting from positive "word of mouth" (J x G) $ ________________

Repeat Customer Business

L. Number of repeat customers, assuming only 1 in 10 (.10 x B) $ ________________

M. Revenue per customer (L x G) $ ________________

N. Replacement cost for lost customers (M x 5) $ ________________

Reduced Customer Replacement Cost

O. Reduced replacement costs (N / 5) $ ________________

Total Increase

P. Total annual increase (H + K + M + O) $ ________________

Q. Total Increase over customer's lifetime or 10 years (P x lifetime or 10 years) $________________

Website: www.marketmagic.com

Small Business Wiki: http://www.marketmagic.com/wiki/