The Cost of Bad Customers
Posted on January 22, 2009 by Sallie Burnett
[CFO Magazine 1/1/2009]
In times like these, we need every customer we can get, right? Actually, at most companies, nearly one in three customers aren’t profitable. The bottom 20% — the discount shoppers and hard bargainers — can drain profits by 80% or more, says Larry Selden, a Columbia University professor emeritus. Segmenting the customer base is time-consuming and expensive, but the expense is more than worthwhile.
Customer Loyalty Consultant | Customer Retention | Global Keynote Speaker | Social Media Marketing Strategist at Customer Insight Group
Sallie Burnett is the founder and CEO of Customer Insight Group, a strategic marketing firm that leads the way in the evolution of how companies engage their customers and earn their long-term loyalty. Sallie has more than two decades of strategic consulting experience helping some of the world’s leading companies engage, keep, and grow more profitable customer relationships.
Filed under: Best Customer Management