A helpful approach in estimating this financial impact is to consider the “cost of inaction”.
The cost of inaction considers:
- The rate at which the problem may continue to occur if no action is taken
- The cost of handling customers’ complaints about it
- The impact the problem may have on the loyalty of customers who experience the problem but don’t complain about it
- The impact negative word-of-mouth may have on potential future customers and their choices
The tool below includes each of these elements and is pre-populated with sample company and research data from our archives.
When using the tool, feel free to replace the default data in Step 1 with values that relate more closely to your own business.
If you don’t have your own values for the research data shown in the model, feel free to use the generic data we have supplied, but please consider having us conduct a customer experience baseline study for you in the near future so you will be able to do more accurate modeling.