The fast road to bankruptsy is to charge customers to talk to you.Â See why bad profits are a bad idea.
* Bad Profits. It’s a term coined by Fred Reichheld, author of The Ultimate Question: Driving Good Profits and True Growth. Here’s what he says about bad profits:
Bad profits often boost short-term earnings; in the long run, they burn out employees and alienate customers. They also undermine growth by creating legions of detractorsâ€”customers who sully the firm’s reputation and switch to competitors at the earliest opportunity. Bad profits choke off a company’s best opportunities for true growth, the kind of growth that is both profitable and sustainable.
Charging customers a fee to talk to your customer service, or to use your service or to make changes to their account, is at the top for ways to generate bad profits and burn out employees and alienate customers. Like I said, if it was working why aren’t companies who do it thriving?