The Cost of a Negative Review

What are negative reviews actually costing you?

Many businesses we have talked to are not aware that they even have any negative reviews written about them. Most businesses are aware of negative reviews but don’t have any idea how to deal with them, and many of them deny that they actually cost them any customers. This is a serious mistake.

Over 80% of people are adversely affected by negative reviews and have actually changed their minds regarding an important purchase decision.

This calculator explains exactly what every negative review is costing you in dollars and cents. It’s very simple but the video below the calculator will help explain exactly how to fill in each of the cells. We are certain you will shocked at the cost, no matter what business you are in.

Cost to Lose Just 1 Customer
Reputation Marketing Gain
Cost to Acquire

Value of a Customer		Cost of Losing Customers	Annual	Monthly
Amount of Average Sale		No. of Negative Online Reviews
No. of Sales per Year		No of Lost Customers Per Review
No. of Years a Customer
Additional Customers Referrals/Year		Lost Revenue (Yearly Cust Value)	$0	$0
% of referrals who become customers
Gross Sales per Year per Customer	$0	Lost Revenue (Lifetime Cust Value)	$0
Total Lifetime Value of a Loyal Customer	$0

* 2009 Convergys Corp. Study: Single Negative Online Review can
Cost the Average Business an Average Loss of 30 Customers

2011 Cone Online Influence Report: 80% say NEGATIVE online information
changed mind about purchasing a product or service

Revenues	Annual	Monthly
Current Sales Revenues	$0
How Many Additional Stars? (1, 1.5, etc)
Increased Revenue % (5-9%) *	$0	$0

Cost of Reputation Marketing
Net Revenue Increase	$0	$0

Reputation Marketing ROI		0%

* 2011 Harvard Business School study shows EACH additional Star on Yelp increases Revenue by 5-9%

	Current Marketing Efforts		Annual	Monthly
A	Total Sales/Revenue			$0
B	Number of Sales/Transaction (A / C)		0	0
C	$ Avg Transaction Per Customer			$0
D	* Estimated Number of Avg Transactions Per Customer Approx number of times Avg Customer returns			0.0
E	Number of Unique Customers (B / D)		0	0
F	* Estimated % of Repeat Customers Approx number of Avg Customers who are Repeats			0%
G	Number New Customers (E - (E x F))		0	0
H	Total Customer Value (C x D)		$0	$0
I	Current Total Marketing Budget Ads, Promotion, Technology, Services, etc			$0
J	Current Cost to Acquire One New Customer (I / G)	$0
K	Current Net After 1st Transaction from New Customer (C - J)	$0
L	Current Annual/Monthly Net Per Customer Value (H - J)		$0	$0

	Additional New Marketing Effort
M	Anticipated Number of New Customers		0
N	$ Avg Transaction Per Customer		$0
O	Total New Customer Revenue (M x N)		$0	$0
P	Cost of New Marketing Services		$0
Q	Additional Cost of New Marketing Svc Per New Customer (P / M)		$0	$0


	Net $ Per New Customer From New Service (M - Q)			$0
	New Cust ROI After New Mktg Service			0.0%

5 Star Reputation Management, Customer Satisfaction

Do they really matter?

What are negative reviews actually costing you?

This video explains how to use this calculator: