New rule customer

New rule customer - New rule The customer is king Old rule...

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New rule: The customer is king. Old rule: Shareholders rule. By Betsy Morris , Fortune senior writer July 11 2006: 10:10 AM EDT NEW YORK (Fortune) -- Whenever you ask a CEO about the importance of customers, you hear the requisite platitudes. But in fact, customers have often lost out in the relentless push to maximize shareholder value (as represented by the stock price) and to maximize it immediately. One Bain & Co. study found a huge gap between the perceptions of executives - 80 percent of whom think they are doing an excellent job of serving customers - and the perceptions of customers themselves: Only 8 percent of them agree. Every four years, according to Bain, the average company loses more than half its customers. Aggressive pricing (on hotel phone bills, rental-car gas charges, and credit card fees, to name a few examples) has increased as the profit pressure on companies has mounted, says Bain's Fred Reichheld. Abusing customers this way, says Reichheld, "destroys the future of a business." He
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New rule customer - New rule The customer is king Old rule...

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