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If you've done customer profitability analysis, you've probably identified who are your best customers - as well as who are your worst. Those customers who place only small or infrequent orders, are tough to deal with, or fail to pay on time - should you cut them loose? If so, how do you do it? Before you decide to end a client relationship, consider how expensive or time consuming it will be to make up the lost revenue. Because it is costly to acquire a new customer, first look for ways to boost the profitability of the relationship.
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