{"id":77,"date":"2015-04-25T20:54:22","date_gmt":"2015-04-25T20:54:22","guid":{"rendered":"http:\/\/www.customerservicemanager.com\/csm210469\/?p=77"},"modified":"2022-10-05T19:35:30","modified_gmt":"2022-10-05T19:35:30","slug":"whats-a-customer-worth","status":"publish","type":"post","link":"https:\/\/www.customerservicemanager.com\/whats-a-customer-worth\/","title":{"rendered":"What’s a Customer Worth?"},"content":{"rendered":"

One of the most serious and costly mistakes companies make is failing to recognize the difference between the value of a customer today and the long-term value of that customer.<\/strong><\/p>\n\"Customer\n

Many organizations, when faced with a difficult customer situation may succumb to the tendency to “just let this one go,” allowing the customer to leave rather than make an exception to a rigid policy to accommodate the particular situation.<\/p>\n

But this kind of short-sighted approach can have long-term implications on the sustainable viability of the company. For example, a single bad experience with an airline, compounded by their unwillingness to correct the situation, could very easily convince me to avoid travelling with that airline in the future.<\/p>\n

Of course, this would be a bad move on the airline’s part, since I am a frequent flyer. A very frequent flyer. At the time of this writing, I am about 15,000 miles shy of two million total miles in the American Airlines’ Advantage program.<\/p>\n

Do the math with me based on the following very conservative assumptions:<\/p>\n