Killing Customer Relationships in the Name of Profit

Amen and amen

CRAIN'S COMMENTS

Let’s be clear. There are some customers that no business wants. They are needy, time consuming, demanding and sometimes indecisive. Put simply, they require too much time and attention or too much in the way of discounts to be worth having a customers. To survive with some level of sanity, the business owner needs them to go elsewhere.

However, we also have businesses driving good customer away by an excessive focus on cost-cutting. Further, the cost savings they seek may not be real.

Cost-savings as a goal represents a paradox. After all, the perfect company in terms of low cost makes nothing, sells nothing and has no employees. The cost of operations is zero, but so are revenue and value. How many companies really want to be that firm?

Apparently, a slick consultant can talk a management team into almost anything, including mergers that produce massive losses and automation that…

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