Angel Customers & Demon Customers: Discover Which is Which, and Turbo-Charge Your Stock
Denver Co Library
About this book
One of the oldest myths in business is that every customer is a valuable customer. Even in the age of high-tech data collection, many businesses don't realize that some of their customers are deeply unprofitable, and that simply doing business with them is costing them money. In many places, it's typical that the top 20 percent of customers are generating almost all the profit while the bottom 20 percent are actually destroying value. Managers are missing tremendous opportunities if they are not aware which of their customers are truly profitable and which are not. According to Larry Selden and Geoff Colvin, there is a way to fix this problem: manage your business not as a collection of products and services but as a customer portfolio. Selden and Colvin show readers how to analyze customer data to understand how you can get the most out of your most critical customer segments. The authors reveal how some companies (such as Best Buy and Fidelity Investments) have already moved in this direction, and what customer-centric strategies are likely to become widespread in the coming years.For corporate leaders, middle managers, or small business owners, this book offers a breakthrough plan to delight their best customers and drive shareowner value.
Argues that not all customers are equally profitable to a company and suggests that companies should therefore treat customers differently, improving service to the best customers and getting more of their business while finding ways to either make unprofitable customers profitable or let them go. Like many good ideas, this one seems obvious until you realize that most companies do not act as if they understand it. The book gets bogged down in the details from time to time, but the central idea is rich with implications for most companies.
A must read for anyone in the business of serving customers AND shareholder interests. In business to make money and grow earnings while serving customers-need to know who contributes to profits in order to drive premium P/E.
I had to read this book three times to understand it. If you have the time and the patience...go ahead