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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.


Your Average
X # of Customers Who
Leave Your Organization ANNUALLY
= $/Year
in Lost Revenue

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.

Your Operating Budget $   X  The Percentage of Your Operating Budget
Spent on Fixing Customer Problems
= $ Your Organization Wasted in
Fixing Bad Customer Service
$   X  %    $  


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.

Your Average Cost of Marketing to Gain 1 Customer X # of Customers Who Leave
Your Organization ANNUALLY
= Your Cost to Replace Lost Customers
$    X        $  


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.

Your Average Cost to
1 Employee
X # of Employees Defecting from Your Organization ANNUALLY = $ Lost by Employee Turnover
  X    $  


* Mathematical equations courtesy of TARP