"Our Take" |
"Our Take" is a collection of daily
vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions,
epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
6/1/06 - A Reason for Unprofitable Customers
Today I want to do a bit of housekeeping by sharing a few reader comments from the last few days. First, some of you wrote that it is not always marketing's fault for scooping up unprofitable customers with their marketing campaigns. It was pointed out that sales reps often bring in unprofitable customers.
I certainly didn't mean to pick on marketing as the sole culprit bringing in unprofitable customers. Apologies to all my fellow marketers. One reader suggested there may be reasons to acquire unprofitable customers. For example:
"It's not good to have a large number of unprofitable customers, but maybe a few is OK. We have a few customers who cost us more than we charge for licenses, maintenance and services, yet we want to retain them. They are considered strategic customers, as they serve as great reference sites for new sales deals. In effect, their profitability to our company is indirect, in new product license sales." Good point - referral customers are worth their weight in gold.
Gary Lemke, Publisher
(Share your thoughts)