Doing the Math on Disappointed Customers

Jay Goltz published Doing the Math on Disappointed Customers on the You’re the Boss blog. The article talks about the cost of not taking the time, effort, and money to fix a customer’s problem.

And that was O.K. Of course, the next time someone asks me which company coated my floor, I will be giving a different answer. Here is the simple math. The touch-up kit can’t cost more than $10, including shipping. The cost of coating a garage floor is now, I’m sure, around $4,000. I almost certainly would have had occasion to recommend this company to a couple of other people in the coming years. Which means this will probably cost him $8,000 in lost business. And then there are all of the referrals from the referrals. Maybe $20,000? $50,000? Nice letters and warranties might get a sale, but standing behind your product or service will get the repeat business and referrals that make the business.