One key factor in defined “Customer Loyalty” is Word of Mouth Referrals (WOMR). Word of Mouth Referrals is very strong because it drives revenue. Unfortunately, the contrary is also true. Negative Word of Mouth costs organizations millions of dollars per year. To get this under control, there must be a method for tracking and improving these statistics. You can’t manage what you can’t measure, so let’s review what these numbers look like in summary and then dive into the details. If you increase satisfaction and reduce dissatisfaction, your revenues will increase dramatically.
Here is what it looks like in summary:

80% satisfaction rating = $960,000
20% dissatisfaction rating = $720,000

90% satisfaction rating = $1,080,000
10% dissatisfaction rating = $540,000

10% positive satisfaction swing = an additional $300,000

Let's take a closer look at the math. Assume the following:

• 70% satisfaction rating
• 30% dissatisfaction rating
• Satisfied customers tell 2 people
• Dissatisfied customer tell 6 people
• 10 Referrals +/- equals 1 Action (Lost customer or New customer)
• LTV is $300 per customer
• Assume 20,000 customers serviced per month

20,000 x 70% x 2 = 28,000 positive referrals

28,000 referrals x 1 Action = 2,800 new customers
10 referrals

2,800 new customers x $300 LTV = $840,000 in PWOM revenue

20,000 x 30% x 6 = 36,000 negative referrals

36,000 referrals x 1 Action = 3,600 lost customers
10 referrals

3,600 lost customers x $300 LTV = $1,080,000 in NWOM revenue LOST

The key factor in controlling word of mouth referrals is understanding "WHY" customers are satisfied as well as dissatisfied and work on the right end of the problem. The good news is that when satisfaction increases overall then dissatisfaction decreases thus yielding an exponential effect on revenue.