Customer value and customer loss

For example, a customer goes to the supermarket once a week, and the average shopping time is 100 yuan, which is 5000 yuan for 50 weeks a year. Suppose he has lived in this area for 10 years, which is 50000 yuan; Calculated by 10% profit, it is 5000 yuan profit. Therefore, a dissatisfied customer may mean that the store has lost 50,000 yuan in business and 5,000 yuan in profit. On the other hand, companies can understand customer value by calculating the cost of customer churn. For example, a company has 5,000 customers. Suppose 5% of customers, that is, 250 households, are lost this year because of poor service. If the average sales income of each customer is 8,000 yuan, the income will be 2 million yuan less, and the profit will be 10%, and the profit will be 200,000 yuan less. According to the data listed in AMA Customer Satisfaction Manual of American Marketing Association, every 100 satisfied customers will bring 25 new customers; Every time you receive a customer complaint, it means that 20 customers feel the same way; The cost of acquiring a new customer is five times that of maintaining a satisfied customer; Winning a new customer costs 6- 10 times more work than maintaining an old customer; Customer level increased by 20% and turnover increased by 40%.

However, market research shows that a company loses about 10%-30% customers every year on average. However, many companies often don't know which customers they lost, when they lost them, what is the reason for the loss, and what impact this will have on their sales revenue and profits. They are not worried about losing customers at all, but they still try their best to attract new customers according to traditional practices. It is of great significance for enterprises to study and analyze customer churn calmly to save the crisis and grow healthily.