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It may seem counterintuitive, but smart companies need to routinely rid themselves of less profitable customers, the same way an assetmanager or rebalances an investment portfolio or a Major League Baseball general manager trades a declining player. We call these people CostCenter Consumers, and they come in two flavors.
And on the resource constraint front, Jeremy Grantham , co-founder of the assetmanagement firm GMO ($100 billion invested), continued his relentless numbers-based assault on the fallacy of infinite resources. Announcements on waste may not be exciting, but they demonstrate how companies can turn a costcenter into a source of profit.
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