Hello everyone, I just want to share my insight that I just learned when I was playing GoVenture Kiosk Business Simulation.
As I continue playing the GoVenture Business Simulation, one of the most valuable concept I’ve learned is Customer Loss Rate.
A question I kept asking myself was:
At what point should I actually intervene when I start losing customers?
In any real business, some customer loss is normal and unavoidable. But the real challenge isn’t eliminating loss completely, it’s knowing when the loss becomes a problem worth acting on.
Now this is easy to overlook when your business is small and serving only a few customers. But once you’re serving hundreds or even thousands, percentages matter far more than raw numbers.
About my Intervention Threshold
For my own decision-making, I set a rule:
- Below 10% customer loss -> normal operational friction
- 10% or higher -> intervention required
Why 10% as my intervention threshold?
Losing 10% of potential customers also means losing roughly 10% of possible profit, which becomes significant at big businesses with big numbers. Below that threshold, I feel like intervening too often can lead to over-optimization and unnecessary changes.
So once customer loss exceeds 10%, that’s when I investigate the cause:
- Is it slow service?
- Pricing?
- Product quality?
- Capacity limitations?
How I Calculate Customer Loss Rate
With the help of AI, I found a simple and clear formula:
Customer Loss Rate (%) =(Customer Lost ÷ (Customer Served + Customer Lost)) × 100
This shows the percentage of total demand that went unmet.
For example:
Let’s say in one day of operating the kiosk:
- Customers Served: 29
- Customers Lost: 13
Total customer demand =29 (served) + 13 (lost) = 42
Now apply the formula:
Customer Loss Rate (%) =(Customer Lost ÷ (Customer Served + Customer Lost)) × 100
= (13 ÷ 42) × 100= 30.95%
So about nearly 1 out of every 3 potential customers walked away.
Why I feel like this formula matters to me
Customer Loss Rate is important because:
- I don’t have to guess when to intervene
- I avoid overreacting to normal business noise
- It helps protect profit, not just revenue
- It acts as a capacity stress indicator, showing when demand is exceeding my ability to serve customers.
I only started playing this Kiosk Business Simulation on day 3 and I already learned such a valuable concept, I'm looking forward to learn more as I keep playing it, especially the full business game! 👏🏼