But understanding where your customers fall on the NPS, and separating each group into profitable & unprofitable customers, will also help. High-profit promoters love to do business with you. They should be your top long-term priority for strategic investment & innovation. However, they are oft en taken for granted. Inadvertently, companies end up milking profitable promoters to fund solutions for less profitable ones. In the 1980s, American Express took healthy profits from its core travel-card business to get into financial services. Margins from high-volume card customers subsidized new customer acquisitions in the new business. Predictably, the company’s growth and profits tailed off – till it revitalized compelling propositions for core customers.
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Source:- IIPM-B&E , Initiative:- Prof. Arindam Chaudhuri - 2006
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