Monday, September 5, 2011

Fire Some of Your Customers

An interesting read from the HBR: It's Time to Fire Some of Your Customers

I worry that this is taken too literally by some people. It makes some sense, focus on those customers that provide good revenue, but this could easily be taken too far by the MBA crowd, and trying to be too efficient to limit yourself to certain customers.

Your customers will change over time, and you need a wide variety of them. The best customers are those you want to cater to, but offending or pushing away too many average customers might leave you without enough good customers over time. It’s also easy to make mistakes about who are the best customers if you don’t ask the right questions of your data. Make sure that you examine the “best” customers from many sides, many points of view, and analyze the data in multiple ways.

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