For this discussion-based assignment, you are going to search the
web to attempt to identify an actual below zero customer for a business of your choice. A below zero customer is defined as "a customer that costs a business more than they are worth".
There are many "expert" opinions on this subject, but here are some additional resources on this topic of below zero customers:
https://www.linkedin.com/pulse/20121030131640-17102372-five-types-of-customers-by-their-value/ (Links to an external site.)
https://www.quora.com/What-are-below-zero-customers-Why-are-they-categorized-as-below-zero-customers (Links to an external site.)
The goal here is to try your best to recognize a pattern of negative emotional loyalty characterized by social media posts or negative reviews by a particular customer and isolate that to identify them as a "below zero customer". Now in reality, this is what expensive algorithms do with unstructured data that they continuously mine..
The organization's algorithms search exabytes (that's thousands of terabytes) of data instantly to identify an IP address with potentially negative impact to the organization while simultaneously looking at customer lifetime value, recency, frequency, etc. in purchases, calculate the CLV/CAC Ratio and other critical metrics, and determine whether that customer is doing more harm than good, or vice versa.
For this assignment, we obviously don't have access to the customer's purchasing information to make an exact calculation on value, but we can look at the potential negative impact and make a personal determination. This type of activity is what social media managers, and to some degree CCO's (Chief Customer Officers), spend their time focused on. For us, this is an exercise in judgement (art), not perfection (science). Here are the deliverables:
1) Once you have identified a potential below zero customer, (without revealing their personal information, please) describe their negative behavior in general terms and the harm that they could be causing the organization. Are they posting on social media? Are they clearly lying/fabricating negative reviews, etc.? Explain.
2) Using your best judgement, do you think their negative behavior/harm is worth the risk for the organization? Why or why not?
3) What do you recommend the organization should do to offset the potential negative affect of the behavior or mitigate the circumstances?
4) Why is data mining critical for this to be an effective process of correctly valuing customers within an organization?
303,122 students got unstuck by Course
Hero in the last week
Our Expert Tutors provide step by step solutions to help you excel in your courses