Are some customers more trouble than they’re worth?

Interesting RetailWire discussion about whether retailers and marketers need to actively “de-market” some of their customers. Most panelists felt that it’s not the role of the retailer to “fire the customer,” but I don’t totally agree:

One of the principles of effective Customer Relationship Management (CRM) is identifying your “platinum” or “gold” customers…the ones who shop your store or site most often, and whose average transaction drives a lot of your profit. Maximizing revenue from your best customers does require the self-discipline to identify the other side of the equation.

Every business has customers who are more trouble than they are worth…cherry-picking the least profitable items in your assortment, not demonstrating any recency or frequency of shopping behavior, and otherwise draining your operating margins. It’s tough to deliberately “walk business” in a slowdown, but it’s worthwhile making sure your marketing and customer service expenses are focused on the most profitable consumer.


0 Responses to “Are some customers more trouble than they’re worth?”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: