According to Fred Reichheld, the Loyalty Economics guru, this is what a “bad profit” can do to your business:

Consider those resentful overage and usage fees from your cell phone supplier, or those plans that manipulate you into buying more minutes than you need. These practices generate bad profits. Whenever a customer feels deceived, coerced, or disrespected, then earnings from that customer are bad – they come at the customer’s expense. Bad profits convert customers into detractors who blacken a firm’s reputation and choke off a company’s best opportunity for true growth, the kind of growth that is both profitable and sustainable. The pursuit of bad profits alienates customers and demoralizes employees. Good profits come from satisfied customers who not only provide repeat business but bring new customers to the company.

And this just in…..

WASHINGTON – NCUA and banking regulators today will propose new rules barring certain unfair credit card practices and setting new requirements on overdraft protection programs, including allowing members to opt out of such programs, also known as bounce protection.

The proposal would prohibit a federal credit union from imposing an overdraft protection fee unless the member has specifically agreed to participate, or “opt-in” to the program.

Enough said….

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