Discover How Much You're Losing By Creating Unhappy Customers.
Understanding the implications of poor service on your business
The goal of this calculator is to become aware of the business implications of delivering poor service to customers every day when you are at work.
Imagine if every staff member in your organisation delivered disappointing service to just one customer each time they turned up for their shift…..the financial implications are HUGE!
References and Assumptions
During these calculations we refer to research statistics and made some conservative assumptions.
Here are the details:
- “A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people.” Reference: White House Office of Consumer Affairs. We have gone a little bit more conservative than this ratio, instead we stuck to the more widely know ratio of “One unhappy customer will usually tell 10 other people about their poor service experience” These ratios refer to word-of-mouth statistic, if you would like to know more, just “Google” it.
- “On average, one unhappy social customer will tell a staggering 53 others about a bad customer experience.” Reference: American Express Global Customer Service Barometer, 2012.
- Our calculation that one unhappy customer will tell on average a total of 63 other people about their poor experience – combines the two statistics above. That is, 10 people through word-of-mouth, plus 53 people through their online social channels.
- We made an assumption that one customer in that total number of customers you connect with in a day walks away from your business feeling unhappy and unsatisfied with the service they received. I think most people would agree that allowing for only one unhappy customer in the course of a day’s trading is a fairly conservative figure to base our calculations on, but at least if we use one as our starting point we can’t be accused of sensationalising the figures.
- The broader reach of social media – we have excluded the “friends of friends” or “connections of connections” on social media in these calculations. That is, when a person sends out a message on social media it is usually forwarded on by more friends to their friends and networks, and so on and so on. To keep our calculations conservative, we have excluded this broader reach because we can’t quantify it.
If you have any questions or comments about this activity we would love to hear from you.
Send us a message on our personal email address: [email protected]
You will need to know two pieces of information about your business to complete the calculations: