Most entrepreneurs don’t think about the loss of a customer
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One customer is not the world. When you have several hundred customers in portfolio, is the loss of one of them is not so bad.
And what if you have to deal with several thousand customers, or as an organisation – such as the large telecom operators – some millions? Then you stand still quiet at the loss of a customer?
Most of us already not. That proved a lecture this weekend. I asked the attendees thought about how they look. The answer was unequivocal. You must focus on the large mass. There are enough potential customers.
Each customer is obviously important, but if there is a disgruntled customer, a complainant, a rotten apple, then you are losing him better than Empire. The cost for that one customer satisfied is often too high, and comes at the expense of other customers.
That was the analysis. So there we are reached; the customer as cost factor. When I asked how they thought the rest, she nodded our beamend. Our main financier, our source of structural earnings as cost factor.
Well, let’s invert the account once. What is the cost of losing a customer?
Lost revenue and margin
For the first time there is this lost revenue and margin.
When you have sufficient customers, this will be only a small percentage. But besides the turnover you lose also volume, which is thus less purchasing power. In addition, the overhead cost per sales grow, since you have to put him on a customer less depreciable.
We made the calculation on the basis of the average turnover of a customer at one of the attendees. An average customer buys for 3.216 € per year, and delivers a net gain of approximately € 350. That you’re lost. Every year again.
New customer acquisition costs
Because you lost a customer, you need a replacement search. If you do not, then you will realize a structurally deteriorate and has.
For a customer to make average four visits. This cost the Organization approximately € 200 per visit (travel time, wage, documentation, quote, petrol, car ….) brings the total to € 800.
In addition, you should double this cost. Were you the customer is not lost, then you had an additional customer had. Also the turnover and margin that you had lost, you need to double for the same reasons.
So far We have already have a cost of € 2,300
A customer who leaves also causes indirect losses.
He will be airing his heart to colleagues and friends. He will forego no chance what he sees as the absurdity of your organisation to show to others. This way you won’t have to create something more trouble to new customers. Let’s say that you are friendly, and therefore has to make four visits per year more (or the prospecting costs of a single customer). so 800 €.
Now We come to a cost of € 3,100. Else seen, this is the profit you make on 8,86 customers.
Conversely, you can ask yourself what it would mean if you leave you satisfied this complaining customer who could.
Not only had you saved this amount, you had there profit on can make.
A customer whose discontent is dissolved, and to whom he gives you the feeling that extra important, will also tell this to his friends and colleagues. Possible under the guise of ‘ see how well I can negotiate ‘, but that doesn’t.
This had you not just the cost savings as profit, you had an extra reference, and the positive endorsement of the customer. Suppose you should do on a year as four prospectiecalls less. Your profit: € 800. You retain the sales and margin on your customer. € 350 per year.
With all this in mind, how much are you now willing to invest in order to retain a customer?