Thursday, January 31, 2008
Annoy Your Customers for Profit
DSL Reports discusses how the Industry tends to annoy its customers, but still make money. Read the short post here. The gist of the thought policy is that "...satisfying the right customers is the goal, but pissing off the wrong customers is equally important.....Chasing away undesirable customers with outrageous fees has been an important element of the banking business ever since." While many of you will argue. This is based on the Pareto Principle (the 80/20 Rule), where 20% of your profit comes from 80% of your customers. Focus you time and effort on retaining the top 20 or 30% of your clients even if it is detriment to the rest. Every phone call and issue has a real cost. The trick is to do this without making a bad name for yourself.