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SUCCESSFUL STRATEGISING THROUGH CUSTOMER EXCLUSION
Edward Kasabov, Alex Warlow
Building: Hilton Ocean Front Resort
Room: Promenade 8
Date: 03-26-2010 - 08:00 AM – 09:15 AM
Last modified: 01-19-2010
Abstract
Marketing tends to emphasise retaining existing customers and generating customer satisfaction and loyalty. However, observation of the current practices of businesses suggests that such an over-emphasis on customer satisfaction may be misplaced. Many successful companies have developed competitive advantage by practicing ‘Exclusion Marketing’. This discussion defines Exclusion Marketing, explores its main tenets and ingredients, and demonstrates how by implementing such tactics modern businesses can reduce the cost of their products and services while offering high levels of service to ‘good’ customers, while eliminating and ‘excluding’ troublesome or non profitable clients. This discussion contributes to debates on the relationship between companies and their customers, firstly, by inverting standard marketing arguments about the value and importance of retaining and pleasing customers. Secondly, we revisit the little that has been written on these issues which tends to be largely limited to the analysis of relations terminated by the customer, whereas we are intrigued by the growing phenomenon of successful companies practicing Exclusion Marketing by terminating relations.
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