Federal Express reportedly segments customers into millionsand thats just to get started. I just cant just- good,
Question:
Federal Express reportedly segments customers into millions—and that’s just to get started. I just can’t just-
“good,” “bad,” and “ugly” categories.* It gives good cus- ify that level of spending when our bottom line is so thin.
tomers, who spend much and demand little service or mar- Evaluate this and the following argument and develop criteketing, preferential treatment; charges bad customers, who ria to judge whether to begin a major customer profitability spend little but are expensive to serve, higher shipping analysis project. I challenge that expense-only thinking. The charges; and discourages ugly customers, who spend little nature of business is spending money to make money. How with poor prospects of increases, from using its services. else are we going to spend money that is more value added?
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto