Revenue at risk from problems

This calculator can help you estimate the potential revenue at-risk from the problems that customers experience

How much of your annual revenue is at risk?

The potential revenue at risk can be calculated using the calculator below.

You can use the data in the example provided, or replace it with your own company data and re-calculate the results.

The white fields contain company financial data and the yellow fields contain data derived from customer experience baseline research.

Step 1: Enter your data

 

Enter your company data, or use our example:		Financial data	Research data
	• Total number of customers		customers
	• Average annual revenue per customer	$	dollars
	• % customer who experience problems annually			%
	• Drop in loyalty due to problem experience			%

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Step 2: Calculate the risk

  

Click on the “calculate” button:
	• Number of customers experiencing problems annually		customers
	• Number of customers at risk due to problem experience		customers
	• Annual revenue at risk from problems		dollars

Research also shows that customers who experience a problem often tell between 8 and 15 other people about the problems they have experience.

	• Number of other people told of bad experience
	• Number of potential customers who hear about the problems		customers

What you could gain

Step 3: Reducing the revenue at risk from problems:

The following calculator considers the possible benefits from three key strategies that reduce a company's revenue at-risk from problems experienced by customers:

		Strategy 1: Make it easier for customers to give feedback:		Strategy 2: Improve the effectiveness of customer response processes		Strategy 3: Learn from customers and make changes to reduce problems
Revenue at risk		More feedback		Better response		Fewer problems
From the calculations and assumptions above, your revenue at risk is currently estimated as:		If you could increase the percentage of customers who have experienced problems, who make contact for help:		By taking effective action responding to the problems they raise, you might turn...		By learning about the problems they experience through effective research and taking action to reduce problems by:
		%		%		%
dollars per year		(Typically, feedback from customers  about problems can be as  low as 5%)		of these back into loyal customers.
Adjust the values in the yellow boxes to reflect your own projected improvements, and then...				This could reduce your revenue at risk by:		This could reduce your revenue at risk by:
				dollars per year.		dollars per year..

Step 4: Your next step

This is only an indication of what a company stands to gain by achieving the projected improvements in these areas.

To get the hard facts for your company, let us establish a customer experience baseline for your organisation to identify and quantify current sources of customer dissatisfaction, estimate potential returns on service investment and set customer-driven improvement priorities for action and change.