Tuesday, November 30, 2010

Research #2

The biggest area of strategic bias is the value-versus-profit dilemma. Some organizations focus on the customer, following the philosophy that profits will follow as a logical consequence of providing value. But this is not always true. Most customer profitability analyses show that a certain percentage of large and respected customers are often simply not profitable. Having large account teams, offering quantity discounts, and other measures to keep and grow large customers adds to the cost of sales, which is not always considered in the customer relationship.





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