Large Firms Tend to Make Up the Majority of the Most

question 21

Essay

Large firms tend to make up the majority of the most profitable customers AND of the least profitable customers. What are some of the characteristics that define both high-cost-to-serve and low-cost-to-serve customers? What can business marketers do to manage high and low cost-to-serve customers?

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Definitions:

Patrick Lencioni

An author known for his books on business management, particularly in the realms of leadership and organizational health.

Productivity

Productivity measures the efficiency of production of goods or services expressed as the output per unit of input, such as labor, materials, and time.

Groupthink

A phenomenon in which people share too similar a mindset, which inhibits their ability to spot gaps or errors.

Consensus

A general agreement or collective harmony in opinion among members of a group, often reached through discussion and compromise.