Cutting off the customer

The Wall Street Journal has an article that looks at how some companies are cutting off the customer that's costing the company more money than profit. Last year, many companies would work with their customers, offer them discounts or work with them on payment options. This year, however, many smaller companies are finding that by cutting off customers who don't pay actually increases their profit, as they have more time to spend with those customers who are making their payments.

Do you agree with this? Have you had to break relations with some of your needy customers in order to create a better supplier for your revenue-generating customers? How do you feel about this approach to business from a customer service perspective?

Best and Worst Small Business Customer Service Rankings

Angie's List recently compiled a listing of the best and worst customer service small businesses. As reported in WSJ.com, based on a survey of its more than 750,000 members by Angie's List these members attached grades to companies in more than 425 service categories, judging the companies based on overall experience, price, quality, responsiveness and punctuality. The best small business with customer service is the piano and the worst are bridal shops. Interesting finds. Check out the entire list here and let us know your thoughts.

In N Out -- Fast Food Service Champions

Recently at the Wall Street Journal, they looked at the recent survey released by Sandelman and Associates which polled 94,000 as to their preferences in fast food. The survey looked at things including quality of food and service, cleanliness and value for the money. The winner of the 2008 Quick-Track Awards of Excellence was burger chain In N Out.

Do you see any chains that weren't recognized for their great customer service?

Here's the complete list of fast food that made the survey for quality experiences:

1. In-N-Out Burger, Irvine, Calif., 60%
2. Raising Cane’s, Baton Rouge, La., 59%
3. Giordano’s Pizza, Chicago, 56%
4. Chick-fil-A, Atlanta, 55%
5. Panera Bread, St. Louis, 54%
6. Chipotle, Denver, 52%
7. Pei Wei, Scottsdale, Ariz., 51%
8. Firehouse Subs, Jacksonville, Fla., 51%
9. Taco Tote, El Paso, Texas, 50%
10. Qdoba, Wheat Ridge, Colo., 49%

(Photo: Seattle Weekly)

Abercrombie not following the market

We've written a lot recently on this blog about keeping your customers by giving them great customer service, and avoiding slashing your prices. One company has decided to do this. According to Customers Think, Abercrombie and Fitch will not lower their prices. They want to take the lower sales volume for a higher profit, and maintain the reputation of upscale clothing. Read more about this story at the Wall Street Journal.