This is a great web tool on the Relationship Marketing Inc. website. This "Relationship Calculator" helps marketers calculate the ROI of that results when customers are retained over time. You can use it to show that just a slight increase in customer retention, over time, results in huge financial gain.
Use it on a sales call:
First, plug numbers into the calculator from Yahoo Finance or just from your own estimations. You don't have to be completely accurate. Initially, your goal is to get your client interested in evaluating this the ROI of customer retention, not delivering a completely accurate picture. Then hit the "click to calculate" button to see the results. Share them. If your client does not like your estimates tell them you will redo them to their specifications. This is a terrific tool for demonstrating that keeping just a few extra existing customers, over a few extra years or adding just a few new ones can make a big difference in the bottom line.
Now ask them, "If you could dramatically increase your advertising do you think you could win/retain 2% more customers? If so here is what the financial result would be for the next 10 years."