by Mike Biwer, Cavallo CEO
In 1905, a Boston Globe profile of department store magnate Marshall Field described his business philosophy with a simple phrase: “The customer is always right.” This was, as far as we know, the first time that phrase appeared in print, and it has haunted businesses ever since.
By now, most leaders understand that this idea shouldn’t be taken literally. But stopping there misses the point. The deeper issue is that not all customer relationships create value in the same way. Some customers contribute meaningfully to growth and stability, whereas others cost more to serve than they ultimately return.
The uncomfortable truth is that not all revenue is good revenue. It’s easy to point at the graph with the arrow going up and say that things are going well, but that doesn’t tell the whole story. While businesses celebrate visible gains…
Read the full Forbes article here.
