Comments on: Is there such a thing as ‘customer profitability’? http://www.salesprocessengineering.net/2008/07/07/is-there-such-a-thing-as-customer-profitability/ The application of process-engineering principles (particularly TOC) to the sales process Wed, 18 Jan 2012 22:26:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stan Heard http://www.salesprocessengineering.net/2008/07/07/is-there-such-a-thing-as-customer-profitability/comment-page-1/#comment-2588 Stan Heard Wed, 12 Jan 2011 11:53:33 +0000 http://www.salesprocessengineering.net/2008/07/07/is-there-such-a-thing-as-customer-profitability/#comment-2588 It makes sense to dispose of customers when they fail to be fully participating in the relationship. They fail to pay their bill after repeated attempts to collect. When that happens you should discard them and find new customers because you have invested hard dollars (totally variable costs) and you must now invest additional dollars for collections. When you can identify and attract replacements easily and find you have slow or no-pay accounts it is best to move on to new and better accounts. It makes sense to dispose of customers when they fail to be fully participating in the relationship. They fail to pay their bill after repeated attempts to collect. When that happens you should discard them and find new customers because you have invested hard dollars (totally variable costs) and you must now invest additional dollars for collections.

When you can identify and attract replacements easily and find you have slow or no-pay accounts it is best to move on to new and better accounts.

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