Negative Review Calculator
To calculate the cost of a negative review to your business, you will need to collect some values to enter into the calculator below.
Click on an item to learn about each value. Then, enter those values in the calculator to find out how much a negative review really does cost you.
The number of customers lost per month due to a negative review.
You can assume 10% to 20% of potential customers will be lost due to reading a negative review about your business.
The number of referral customers lost per month due to a negative review.
These will be customers that you would have received from Lost Customers.
Studies show this number can range between 0.9 and 2.7, but your number may vary.
Multiply this number by your LC to arrive at your RC.
This important marketing metric is a prediction of the monthly value you will obtain from your entire relationship with a customer, not just a single transaction.
For a simplified way to calculate your CV, divide your Monthly Revenue (MR) by the number of Paying Customers (PC) you have per month.
We will calculate this number for you based on your MR and PC entries.
The Monthly Revenue of your business.
The total number of Paying Customers your business has per month.
(LC + RC) x CV x 12 = Annual Cost of a Negative Review
Enter your values below and click Calculate
Formula provided by Brodie Tyler @ RevenueJump
