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Revenue at-risk from problems

Research shows that there is typically a 25% drop in loyalty amongst customers who experience problems.  Research also shows that as many as 35 - 50% of a company's customers may be experiencing problems - even though only as few as 5% may actually complain to an organisations complaints department.

This calculator can help you estimate the potential revenue at-risk from the problems that customers experience

  

How much of your annual revenue is at-risk?

The potential revenue at-risk can be calculated using the calculator below.  Use the data in the example, or replace it with your own company data and re-calculate the results.
 
Step 1: Enter your company data or use our example

Research
data

  
 
  Total number of customers    
  Average annual revenue per customer $ 

dollars

  
  % customers who experience problems annually    

%
  Drop in loyalty due to problem experience  

%
         
       

 
Step 2:

"click" to calculate

  

 
     

 

 
  Number of customers experiencing problems annually

customers

 
  Number of customers-at-risk due to problem experience

customers

 
  Annual revenue-at-risk from problems $ 

dollars

 
         
Research also shows that customers who experience a problem tell between 8 and 15 other people about the problems they experience.
         
  Number of other people told of bad experience    
  Number of potential customers who hear about the problems with your products or services  people

 
 

What you could gain

Reducing the revenue-at-risk from problems:

The following calculator considers the possible benefits from three key strategies that reduce a company's revenue at-risk from problems experienced by customers:

Strategy 1:

Make it easier for customers to give feedback:

Strategy 2:

Improve the effectiveness of customer response processes

Strategy 3:

Learn from customers and make changes to reduce problems
 

Revenue at risk

1. Increased feedback

2. Improve response

3. Problem reduction

  

From the calculations and assumptions above, your revenue at risk is currently:
$
dollars per year

 

If you could increase the percentage of customers with problems who contact you
to:  % ...


(Feedback about problems is typically as low as 5%)

...and, by taking effective action responding to their problems, you might turn
  % of these back into loyal customers.

This could reduce your revenue-at-risk by:

 By learning about the problems they experience through effective research and taking action to reduce problems by   %.


This could reduce your
revenue-at-risk by:

 

 

$   per year.

$ per year.
 

Step 3: Adjust the values in the yellow boxes to reflect your own projected improvements, and then...

  


 

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