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The Cost of a Negative Review

Do they really matter?

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.

Value of a Customer  Cost of Losing Customers AnnualMonthly
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 AnnualMonthly
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 AnnualMonthly
ATotal Sales/Revenue $0
BNumber of Sales/Transaction (A / C) 00
C$ Avg Transaction Per Customer $0
D* Estimated Number of Avg Transactions Per Customer
Approx number of times Avg Customer returns
 0.0
ENumber of Unique Customers (B / D) 00
F* Estimated % of Repeat Customers
Approx number of Avg Customers who are Repeats
 0%
GNumber New Customers (E - (E x F)) 00
HTotal Customer Value (C x D) $0$0
ICurrent Total Marketing Budget
Ads, Promotion, Technology, Services, etc
 $0
JCurrent Cost to Acquire One New Customer (I / G)$0  
KCurrent Net After 1st Transaction from New Customer (C - J)$0  
LCurrent Annual/Monthly Net Per Customer Value (H - J) $0$0
     
 Additional New Marketing Effort   
MAnticipated Number of New Customers 0
N$ Avg Transaction Per Customer $0
OTotal New Customer Revenue (M x N) $0$0
PCost of New Marketing Services $0
QAdditional 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%

This video explains how to use this calculator: