Cost of Lost Customers Calculator

A 2009 Convergys Corp. Study found that a single negative online review can cost the average business the loss of 30 customers.  A 2011 Cone Online Influence Report says that 80% of people interviewed said negative online information changed their mind about purchasing a product or service.  Calculate below the value of one customer and his/her referred business.  Then determine your total loss based on your negative reviews and the number of people that each chases away.

INPUT SECTION: VALUE OF A CUSTOMER
Enter your amounts in fields A, B, C, D, E, F and G (all are required).

A. Amount of Average Sale:

How much is spent on one sale?
B. Number of Sales per Year:

How many times does he/she buy per year?
C. Number of Years a Customer:

How may years will customer keep buying?
D. Additional Customer Referrals per Year:

How many additional clients will he/she refer per year?
E. % of Referrals Becoming Customers:

What percent of those become customers (enter 50% as 50)?
F. Number of Negative Online Reviews Annually:

How many negative reviews do you have from the Reputation Report?
G. Number of Lost Customers per Review:

How may customers lost per negative review? Convergys says 30 per. You can put in less per negative review.
 

OUTPUT SECTION: COST FOR LOSING CUSTOMERS
Fields H, I, J, K and L are dynamically calculated from the input section above.

H. Gross Sales per Year per Customer: $10,000
I. Total Lifetime Value of a Lost Customer: $420,000
J. Lost Revenue (Yearly Customer Value): $200,000
K. Lost Revenue (Monthly Customer Value): $16,667
L. Lost Revenue (Lifetime Customer Value): $8,400,000

  • 2009 Convergys Corp. Study: Single Negative Online Review can Cost the Average Business an Average Loss of 30 Customers
  • 2011 Cone Online Influence Report: 80% say NEGATIVE online information changed mind about purchasing a product or service