Case_In_Point_7th_Edition_Page001_183_2

– Yes. We gained 2 million new customers that quarter. ) eY f n liLe : $ l to L ToT T o e - are T losiny
so m an- Astom r ersN
– Why do you think?
: f orld A re an- T r er m oU t reasons3 fe ootoer Aom uanies m iy o f ave o a retter and m ore reliarle
netT orL n more eU UeA i.e f ad vertisiny n etter t u iAiny r n ooler A u ones or retter A rstom er ser.iAeF
– Assume all that is true, but it only makes up a small portion of our losses. Why else?
j id T e oave a satellite u rorlem
n arsiny A or r TetT orL fo yo doT
T or Ua w oileN
– No.
The student struggles to come up with other reasons, so the interviewer tosses her a bone.
– What if we wanted to lose those customers?
: $ m ot Tsr s re r T erstandF l
– One of our major concerns is bad debt. We spend a lot of time, effort and money on bill collection.
It’s a runaway cost. We spend so much time trying to get new accounts that we don’t do a proper
job vetting our customers’ credit. Here’s a chart for you to study. What does it say to you?