08 November, 2004

Angels and Devils

Analyzing Customers, Best Buy Decides Not All Are Welcome [ad before the story]

Mr. Selden had never applied his angel-devil theories to a retailer as large as Best Buy, whose executives were skeptical that 20% of customers could be unprofitable. In mid-2002, Mr. Selden outlined his theories during several weekend meetings in Mr. Anderson's Trump Tower apartment. Mr. Anderson was intrigued by Mr. Selden's insistence that a company should view itself as a portfolio of customers, not product lines.

Or, to summarize the whole article: "We're getting rid of the cheap stuff, and no more deep discounts. So that leaves us with, um, the expensive stuff. Hurry up and buy it, suckers!"

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