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One of the interesting metrics from my time working in global escalations for one of the worlds largest electronics manufacturers is that most customers don't c

One of the interesting metrics from my time working in global escalations for one of the worlds largest electronics manufacturers is that most customers don't call in for support, but on average we get 3.5 calls per user per account lifetime. The 80/20 rule in in full effect here. The 'needy' customers are extremely resource intensive.

ForHackernews 7y ago
Unless you're a business that differentiates itself with good customer support, you can just fire expensive customers.
- mandelbrotwurst 7y ago
  You could, but there would be a significant risk of serious reputational harm.
- mywittyname 7y ago
  This is probably what I would do. Keep around the high margin customers like the OP, but do something with the Complainy Pants Inc; either force-migrate them to a higher cost service tier, throttle them until they leave, or maybe just slow down their service. The key to remaining competitive in cut-throat industries is knowing where to spend your limited time and money.
  - busterarm 7y ago
    And now you've discovered the business model for Planet Fitness.
    - fishtacos 7y ago
      "either force-migrate them to a higher cost service tier, throttle them until they leave, or maybe just slow down their service. The key to remaining competitive in cut-throat industries is knowing where to spend your limited time and money." How does this apply to Planet Fitness in any way?
      - mywittyname 7y ago
        Lunk Alarms are exactly this: a mechanism for ridding your company of high cost / high maintenance users to focus on the more profitable ones.
steve_adams_86 7y ago
I've sat in on some really gross calls in which my CTO at the time berated DO support for issues that didn't _really_ exist in an attempt to get better rates, or practically yelled at them when minor hiccups occurred in our infrastructure. It was very painful to sit in on. They were remarkably patient and cool about it. I suspect there are many people like him out there sucking up their time and resources.

ForHackernews 7y ago

Unless you're a business that differentiates itself with good customer support, you can just fire expensive customers.

mandelbrotwurst 7y ago
You could, but there would be a significant risk of serious reputational harm.
mywittyname 7y ago
This is probably what I would do. Keep around the high margin customers like the OP, but do something with the Complainy Pants Inc; either force-migrate them to a higher cost service tier, throttle them until they leave, or maybe just slow down their service. The key to remaining competitive in cut-throat industries is knowing where to spend your limited time and money.
- busterarm 7y ago
  And now you've discovered the business model for Planet Fitness.
  - fishtacos 7y ago
    "either force-migrate them to a higher cost service tier, throttle them until they leave, or maybe just slow down their service. The key to remaining competitive in cut-throat industries is knowing where to spend your limited time and money." How does this apply to Planet Fitness in any way?
    - mywittyname 7y ago
      Lunk Alarms are exactly this: a mechanism for ridding your company of high cost / high maintenance users to focus on the more profitable ones.

steve_adams_86 7y ago

I've sat in on some really gross calls in which my CTO at the time berated DO support for issues that didn't _really_ exist in an attempt to get better rates, or practically yelled at them when minor hiccups occurred in our infrastructure. It was very painful to sit in on. They were remarkably patient and cool about it. I suspect there are many people like him out there sucking up their time and resources.