Research of the T.A.R.P. report found the following……
One unhappy customer who is disappointed represents 6 others.
These 6 others don’t complain, they just tell other people.
1 + 6 = 7
The average disappointed customer tells at least 9 others.
7 x 9 = 63
We now know there is an assumed level of influence of 25% .
Only a ¼ will be affected, to the point of acting on what they hear.
16 people are likely not to do business with a company that can’t deliver satisfactorily, or who somehow communicates an attitude of rudeness of indifference.
Multiply this by the average revenue for your product or service.
Lets assume an average yearly account for a customer is £2000.
16 x £2000 = £32,000.
What’s the lifetime value of your customer?
2 Years? |
5 Years? |
10 Years? |
Say 5 Years
5 x £32,000 = £160,000
This is your long-term value of poor customer service.
Fill in your own statistics... Using 16 as the influenced number.
If you want to know more about how you or your work team can raise their customer service standards, please contact Glenn Harrison for an informal chat.
Motivational Training: tel +44 (0)1777 710999
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Glenn Harrison
Author/Coach/Trainer/Motivational Speaker
Certified Acredited Behavioural Analyst |