The Cost of Bad Customers
Posted 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 Global Keynote Speaker | Social Media Marketing Strategist at Customer Insight Group
Sallie Burnett is the founder and CEO of Customer Insight Group. This strategic marketing firm leads the way in the evolution of how companies engage their customers and earn their long-term loyalty.
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Filed under: Best Customer Management