What is the real cost of losing one customer?

Let's take an example of a variety store. The clerk makes the patrons angry enough over a $25 purchase that they refuse to buy it and storm out, vowing never to return.

At first glance, you say, "Well, it's only twenty-five dollars. No big deal."

However, that customer usually bought $25 worth of merchandise every month. Do the math: it comes out to a $300 loss for that year.

Still no big deal? Statistically, only 7% to 11% of upset customers will say anything to you; however, most will tell up to twenty of their friends about the unpleasant experience at your store.

Suppose he or she convinced nine people to stop shopping with you. Calculate that: a $3000 loss for that year, and $30,000 lost over a ten-year period.

This is why each customer is important and why you should discuss this attitude with every employee in your company. Run the numbers by them. It costs five times as much to get a new customer as it does to keep your current ones. Save the time, money, and frustration by working harder to keep what you have.

I'd like to send you a FREE copy of "Ten Marketing Mistakes Your Business Can't Afford To Make." Call or email using the information below. I look forward to hearing from you, and best success to you in your company!

402-379-5948
michael@ogmarketing.com