I’ve written about good customer service in the past, highlighting my excellent experience with L.L. Bean. I’ve postulated that quality customer service is actually free, because the incremental sales more than make up for “excessive” talk time and refunds/credits granted by your customer service representatives.
Here’s a trivially-observed example of what lousy customer service will cost you. In this example, from Verizon, it’s a minimum of $100.
As I was reading it, I started to think about applying LTV to the methodology. When you think about making decisions based on LTV, the story becomes even more clear. All will be revealed (with a graph!) after the break.