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If banks cannot recoup that money, he added, they may be forced to jettison unprofitable customers.
We postulate that AOL wants to limit sales to unprofitable customers such as IT-savvy expert users.
The company divested itself of its unprofitable customers and of the employees who supported them.
Drug firms lag behind other industries in the way they use information technology to discriminate between profitable and unprofitable customers.
V. Mittal, M. Sarkees and F. Murshed, "The Right Way to Manage Unprofitable Customers," Harvard Business Review 86, no. 4 (April 2008): 94-102.
Very profitable customers could be given rooms for free, while unprofitable customers could be charged the highest rate.
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The changes produced immediate benefits of $150,000 per year, transforming this unprofitable customer into a profitable one.
"There's a good chance that G.E. has already encouraged them to write off obsolete assets, take restructuring charges and end unprofitable customer relationships," said Mr. Ghriskey of Dreyfus.
That the financial reporting by Internet companies had aspects of a Ponzi scheme with large sums spent to gain new but unprofitable customer accounts–is nothing new at this point.
It may decide to walk away from an unprofitable customer segment, or to begin the shift out of a segment that does not represent its future.
Aetna said it had raised premiums 14percentto16percentcent for unprofitable Prudential customers and that they had been leaving faster than Aetna had expected.
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worthwhile customers
negative customers
loss making customers
unprofitable units
unprofitable plants
unprofitable businesses
unprofitable shadows
unprofitable markets
unprofitable acquisitions
unprofitable writers
unprofitable operations
unprofitable documentaries
unprofitable factories
unprofitable routes
unprofitable consumers
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com