Customer segmentation in action

You’re probably familiar with the idea that, for most companies, a relatively small percentage of customers generates a large percentage of revenue. This is particularly true for industries, like airlines, where pricing is highly variable. Looks like the same thing is true for mobile operators. Sprint Nextel has an innovative solution: find the customers who are costing you the most in support, then fire them. I wonder if this model will ever catch on in the software industry?

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