Saturday, August 05, 2006

Are you a profitable customer?

More and more companies are beginning to use LifeTimeValue metrics to reward their best customers and to exorcise their devil customers. How soon before the non-profitable customers get warranty denials and poor customer service, just like the practice of denying claims in the insurance industry? (According to the 1999 Kaiser Family Foundation study, 42 percent of physicians said that their most recent treatment denial was ultimately resolved in the patient's favor. Source: Kaiser Family Foundation and Harvard University School of Public Health. Survey of Physicians and Nurses. Menlo Park, Calif: Henry J. Kaiser Family Foundation; July 1999.)

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