Focus on credit generating the most profit growth
This means identifying customers with the greatest profit potential, rather than the ones who are most profitable now. Businesses often try to be all things to all people, disregarding the need to retain a focus on the most profitable parts of the market. Customer loyalty may be important, but if the cost of ensuring a customer’s loyalty outweighs the benefits
and revenue of that customer, why bother? Maintaining market share for its own sake is often an unwise approach. If a customer cannot be retained without losing money, then it is better to lose that customer and focus on those that will help improve profitability.
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