Monday, January 19, 2009
Low Margin Milk
There is simply too much emphasis on preserving high gross margin accounts to the detriment of identifying low margin sites with high potential. High GMS customers are locked into our services, their switching costs are much higher than that for a younger company with lower revenues. For some sites it would not take much effort to nurse into higher levels of revenue. Plus smaller sites are often more engaged with social media. More resources on nursing the lower end would yield greater returns, decrease churn, improve brand reputation.
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