Cost of Lost Customers Calculator

A 2009 Convergys Corp. Study found that a single negative online review can cost the average business the loss of 30 customers. A 2011 Cone Online Influence Report says that 80% of people interviewed said negative online information changed their mind about purchasing a product or service. Calculate below the value of one customer and his/her referred business. Then determine your total loss based on your negative reviews and the number of people that each chases away.

INPUT SECTION: VALUE OF A CUSTOMER
Enter your amounts in fields A, B, C, D, E, F and G (all are required).

A. Amount of Average Sale: How much is spent on one sale?	B. Number of Sales per Year: How many times does he/she buy per year?
C. Number of Years a Customer: How may years will customer keep buying?	D. Additional Customer Referrals per Year: How many additional clients will he/she refer per year?
E. % of Referrals Becoming Customers: What percent of those become customers (enter 50% as 50)?	F. Number of Negative Online Reviews Annually: How many negative reviews do you have from the Reputation Report?
G. Number of Lost Customers per Review: How may customers lost per negative review? Convergys says 30 per. You can put in less per negative review.

OUTPUT SECTION: COST FOR LOSING CUSTOMERS
Fields H, I, J, K and L are dynamically calculated from the input section above.

H. Gross Sales per Year per Customer:	$10,000
I. Total Lifetime Value of a Lost Customer:	$420,000
J. Lost Revenue (Yearly Customer Value):	$200,000
K. Lost Revenue (Monthly Customer Value):	$16,667
L. Lost Revenue (Lifetime Customer Value):	$8,400,000

2009 Convergys Corp. Study: Single Negative Online Review can Cost the Average Business an Average Loss of 30 Customers
2011 Cone Online Influence Report: 80% say NEGATIVE online information changed mind about purchasing a product or service