The Right way to manage unprofitable customers

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Customer divestment, whereby a company stops providing a product or service to an existing customer, was once considered an anomaly. However, it is fast becoming a viable strategic option for many organizations. To better understand recent trends in customer divestment, we took a closer look at some companies that have rid themselves of customers, as well as some of the customers they let go. In 2005 and 2006, we interviewed 38 executives from 32 companies in a variety of industries, including IT, manufacturing, health care, finance, and professional services. Of the executives, 90% said they had given serious thought to divesting customers, and 85% said they had already undertaken divestment. Our research identified four common reasons why businesses terminate relationships with end users: the declining profitability of specific customers, the lower productivity of employees as they deal with unprofitable customers, changes in the capacity to service large volumes of customers, and shifts in a company's business strategy. Before making any moves to divest, businesses would do well to walk themselves and their B2B or B2C customers through a five-part framework we've developed from our research..Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Informasi Detail

Judul Seri

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No. Panggil

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Penerbit

: Harvard Business School.,

Deskripsi Fisik

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Bahasa

ISBN/ISSN

178012

Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

Customer relations
Market strategy
Divestiture

Info Detail Spesifik

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Pernyataan Tanggungjawab

pa

Versi lain/terkait

Lampiran Berkas

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