Friday, September 23, 2011

How to Ruin a Business and Alienate Customers in Five Easy Steps

Netflix Video Streaming for iPhoneImage by Photo Giddy via Flickr1. Fail to build a strategy that includes the addition of new revenue streams.

2. Give away new stuff to address an emerging market to your core clients for pennies.

3. Decide that you want to make money on the new stuff and start charging your core clients double.

4. When you realize that your clients are angry, send them a letter explaining that you failed to recognize the market was changing. Tell them you made a mistake, but don’t actually do anything to fix the problem.

6. Fail to recognize that there’s value in being the only vendor who can provide both products. Announce that you are splitting the new business from the core business. Choose a funky name for the old business and use the established name for the new business. Make it really easy for clients to switch vendors.

Need I say more?

7 comments:

Joanne said...

It's all about the client, isn't it? Alienate the client, and it seems big trouble looms.

Stina Lindenblatt said...

I've got one. Fail to recognize you've got competition and your customers can easily walk away. And better yet, they can use the power of social networking to pull more customers away with them.

Steve in POK said...

Too much pot that day in the NF board room....

Colette said...

Stina, yes -- add that to the list!
Steve, is it the NF boardroom or the QS boardroom?

Liz Fichera said...

I'm guessing...Netflix?? :)

Colette said...

Liz, yes -- that would be the example here.

Dave E said...

"Fail to recognize you've got competition and your customers can easily walk away."

Unless you are talking about banks. Seems they are all as bad as each other really but what's the alternative? Cash maybe!