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  • Steven Woda

Netflix Redux: Is It Ever OK to Fire Your Customers? | AlwaysOn

Is it ever ok to fire your customers? Netflix increased price increased price by 60%. They are projected 1 million losses of customers beyond what they had expected: 200,000 from streaming and 800,000 from their traditional DVD mailing business. Is this suicide? Is it ever a good idea to “fire” your customers?

This is a great article about customer segmentation that you really should read.

Yes. It is okay to fire your customers! I just finished doing some of that in my business. It is great have folks willing to pay you, but you have to be able to grow and expand your business profitably, and if some customers are getting your way of that mission, you need to fire them so that you can find more profitable customers… or change your model to make your current customers more profitable.

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