How to Manage Bad Customers...or, Profits Are from Heaven, Customers Are from Hell

11th Dec 2000

This paper describes how technology and data sources now make it possible for companies of all sizes (not just large) and government organisations to differentiate much more accurately between "good" and "bad" individuals and groups, where "good" and "bad" are defined according to the organisations objectives.

The paper discusses how to identify and predict good and bad customers, and stresses the importance of an organisation defining "good" or "bad" accurately, and keeping this definition under review according to the performance of individuals The balance between risk and value is analysed and the portfolio approach is discussed. The paper also considers some social, political and ethical issues, before looking at risk and value indicators and different ways of managing risk. By Merlin Stone

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