Important Unwanted Customers

Top 5 Reason Why The Customer Is Always Right Is Wrong got me thinking on how many times we have had customers who are nothing but a cost to the company.

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These customers generally form the Long Tail;

The phrase The Long Tail (as a proper noun with capitalized letters) was first coined by Chris Anderson in an October 2004 Wired magazine article [1] to describe the niche strategy of certain business such as Amazon.com or Netflix. The distribution and inventory costs of those business allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The group of persons that buy the hard-to-find or “non-hit” items is the customer demographic called the Long Tail….

Credit Card Issuers face such people all the time. If you were in a business of non standard products; how would you tackle this situation? Some software product companies circumvent this problem by trying to route support calls from rare customers and customers who only call never ask for paid support to the paid line.

What about a real tangible product like ours? The only thing they can do is to reduce the carrying cost of such customers to as minimal levels as possible. This helps them retain market share (credit cards are a highly competitive market) without being a burden on the bottom line.

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