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When should unprofitable customers be dropped

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Discussion Question

I need answer this Discussion Question ,

IManagers are required to make many tough decisions over the course of a work day. One of the tough decisions a manager may be faced with is the decision to drop an existing customer from their portfolio.

Some companies refuse to drop customers (including non-profitable customers) in the hopes that these unprofitable customers will become profitable in the future.

Other companies do not want unprofitable customers impacting their bottom line year after year and choose to drop them.

In your opinion, when should unprofitable customers be dropped (if at all)? Provide personal examples or research to help support your arguments.

The Harvard Business Review released a case study, included in our readings this week, on "When to Drop an Unprofitable Customer." You may choose to discuss this case analysis as part of your response, however it is not required.

Article

Kaplan, R.S. (2012, January). Case study: When to drop an unprofitable customer. Harvard Business Review.

Reference no: EM131493204

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