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From the Blogosphere

October 30, 2007 11:00 AM
From David Maister Blog: Passion, People and Principles

Hi David,

I had a question I wondered whether you or your blog readers had any opinions on.

Many companies have unprofitable customers. This situation may arise for many reaons including:

* Poor pricing controls - offering large and multiple discounts

* Historic overservicing and undercharging long-term customers

* Lack of understanding of the true cost to serve

Nonetheless, whatever the reason, when companies do find unprofitable customers they need to manage them. They can be made profitable or they can be "fired".

Do you have any ideas or strategies for actually firing customers? Does anyone have any examples of how their companies (or others) have done this and what the results were?

Regards. Daryn, Sydney, Australia

***

Well, gang, what say thee?

[ Read the entire post at David Maister Blog: Passion, People and Principles ] Open in this window Open in a new window

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