Bottom Line Calculators
Plug in your numbers below to use the calculators and see how customer service affects your organization's bottom line.
|The Cost of Losing Customers: When customers leave, they take to competitors money that would have been yours. If you keep your customers, you keep the money.
The Cost of Bad Service: Highly effective companies spend about 10% of their operating budgets on reworking and fixing customer problems caused by poor service. Ineffective companies spend as much as 40% of their operating budgets on the same thing. Improved customer service can create significant savings in this area.
The Cost of Replacing Your Lost Customers: Before growing market share by one customer, a company that is losing customers must pay the price to make up lost accounts. Retaining existing customers saves part of this cost.
The Cost of Turnover: Losing customers is highly correlated with employee turnover. Improving customer loyalty requires improvements in employee retention, which results in added savings.
* Mathematical equations courtesy of TARP