What do you think about the idea of ranking your customers as A, B, C, and D based on profitability and then firing the ones who are not an A or B? (assuming A are very profitable and B are profitable)

Forum : Customer Profitability

Read the article on Customer Profitability.  The article talks about several US banks and what they have done to ensure that they are only dealing with the most profitable customers.

1.) What do you think about the idea of ranking your customers as A, B, C, and D based on profitability and then firing the ones who are not an A or B? (assuming A are very profitable and B are profitable)

2.) What could you do with C and D customers besides fire them?

3.) Do you think you should fire customers who are highly profitable but who are difficult to service?

4.) can you find some examples of how companies (other than banks) have tried to make unprofitable customers more profitable or to get rid of those who are unprofitable?  Share at least one example.

5.) Read and comment on your classmates posts.

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