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  • Atricle Dump - Customer Discrimination - We Do It All the Time

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    til I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Com

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    A Financial Times editor in London asked my opinion about systems that automatically route customers to higher or lower levels of service based on the loyalty and profitability of the customer.

    This happens every day with gold and platinum customers enjoying faster telephone service and shorter lines while everyone else waits and waits.

    ‘Isn’t this a case of customer discrimination?’ he asked, hoping for a hot topic and response.

    My answer was decidedly cool: ‘Of course this is customer discrimination. And it is totally appropriate. After all, customers do this with companies all the time.’

    The editor was confused until I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Comp

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    This happens every day with gold and platinum customers enjoying faster telephone service and shorter lines while everyone else waits and waits.

    ‘Isn’t this a case of customer discrimination?’ he asked, hoping for a hot topic and response.

    My answer was decidedly cool: ‘Of course this is customer discrimination. And it is totally appropriate. After all, customers do this with companies all the time.’

    The editor was confused until I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Com

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    lse waits and waits.

    ‘Isn’t this a case of customer discrimination?’ he asked, hoping for a hot topic and response.

    My answer was decidedly cool: ‘Of course this is customer discrimination. And it is totally appropriate. After all, customers do this with companies all the time.’

    The editor was confused until I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Com

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    course this is customer discrimination. And it is totally appropriate. After all, customers do this with companies all the time.’

    The editor was confused until I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Com

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    til I explained further.

    Customers are constantly choosing which companies to patronize, how frequently and with what amount of their available budgets. Companies must do the same: choose which customers to serve, how quickly and with what amount of their available budget.

    In both directions, the intention is the same. Customers spend more where they perceive they are getting better service and value. Companies invest more where they see they can obtain better value and long-term ‘service’ (loyalty) from their customers.

    When the matching is done right, it’s a win-win situation for both parties. Customers are given an incentive to consolidate their spending, patronage and loyalty behavior with those companies that ‘treat them right’. And companies have an incentive to increase their

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