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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

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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 strategies that reduce a company's revenue at-risk from problems experienced by customers:
	Make it easier for customers to give feedback:	Improve the effectiveness of customer response processes	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 Step 3: You can change the values in the yellow boxes to reflect you own projections and then...	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.

Revenue at-risk from problems

How much of your annual revenue is at-risk?

What you could gain

Reducing the revenue-at-risk from problems:

Revenue at risk

1. Increased feedback

2. Improve response

3. Problem reduction

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