The diagram on the next page illustrates a retail store with $200 million in annual sales. Its average customer spends approximately $100 per year. In research, it found that 78 percent of its customers were having a positive experience, but 22 percent were not; however, only 2 percent of the people with bad experiences complained. Of that 2 percent, 38 percent of the issues were resolved and the business was retained. By contrast, of those that did not complain, 45 percent defected. Worse still, there was a much less visible loss — 55 percent of the customers reduced their business. Unfortunately, as there was no complaint from this group, none of the issues could be resolved. The lost business from the non-complainers with a poor experience alone accounted for $19.6 million in lost revenue per year:
