3 Strategies for Managing Your Profit-Drain Customers

The potential profit increase from turning around profit-drain customers — that is, high-revenue, low-profit/loss customers — is huge. Engaging and managing these large, low-profit customers requires a very different process than you use for your profit-peak and profit-desert customers. The authors present three ways managers can turn their profit-drain customers into profit peaks. The essential first step is to identify them. Once you’ve done that, the next step is to engage and manage them with specialized, multi-capability teams focused solely on building ongoing relationships in order to lower the cost to serve them — and often lowering the customers’ costs in the process. Finally, take a look at the three cost items that offer many of the best opportunities for improvement.