Tell staff the cost of getting it wrong

Your staff should know that customers who never return can cost you a lot of money. Share this formula: if a customer spends $10 with you every month, that’s $120 a year; if they stayed with you for 10 years, they would spend $1200; but if they left after the first year,
you would lose out on revenue of $1080 (nine years at $120 p.a).

It gets worse
The customer will probably tell 13 other people about their bad experience. Canadian research found 50% of people surveyed said they had avoided doing business with a company simply because of a bad story they had heard.

And worse
If your unhappy customer tells 13 others and six of those people avoid doing business with you – and they too could have spent $1200 over 10 years – you would miss out on a further $7200.

How often could you afford to have this happen?

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