CAN FIRING YOUR WORST CUSTOMERS BE A BAD IDEA?
The interesting part of this Wharton article is not the article itself, but the comments below it. In short, the article says firing low-value, nonprofitable customers can be counterproductive because companies that do so leave themselves open to poaching by competitors: "(Competitors) are likely to intensify their efforts to take your remaining customers … because they now know that most, are of the high-value variety."

Skip down to the comments, and you will get to the heart of the issue. Read through and decide yourself: Can firing a customer be a bad move? Consider this – one commenter rightly asks the reader to look at the reason why a "low-value" customer was lured to the company in the first place: "At the time, was the company primarily interested in increasing market share only? Was the sales force compensated based on volume and not profit? Was the incumbent supplier at the time anxious to unleash this customer and did not try to defend the business? The sales force need to be trained in how to spot a demanding customer who will require too many resources in the future and bow out when there are multiple telltale signs of high maintenance." More...

DOES THE MATH ADD UP FOR GREEN PRODUCTS?
Whether you move into marketing green products in 2008 "depends," says Bruce Merrifield. He suggests considering whether the products will sell regardless of whether they are economically effective for the environment; and what happens to your total economics when you stock secondary green products that may cannibalize your first line of products. Merrifield says "the math for green-in-the-consumer-channels" is not the same for commercial or impersonal products. "If you are selling a one-stop-shop array of items to a tight target of customers, than you can do some quick survey work to find out just how important the green sub-category is to that niche," he says. More...

PHILIPS' BRIGHT IDEA: PUSHING INTO THE GREEN LIGHTING MARKET
Speaking of green, here is Philips' rationale for moving strong into light-emitting diodes (LEDs), which burn cooler and produce the same amount of light using 40% less electricity. More...

YOU HAVE TO 'BUILD LOYALTY, NOT BUY IT'
Employees need to feel that they are active stakeholders and contributors, according to this article from Newsday. How can you motivate your employees and keep them happy? Ask for their suggestions. After all, they are on the front line everyday, dealing with customers. Give praise where praise is due, and be specific about what made a particular action noteworthy. If employees aren't doing well, they should be told why. Honesty builds loyalty.

Lighten things up a bit. One marketing agency hosts seasonal happy hours; another company hosts monthly round-tables where an employee from each department is invited to lunch with the HR director, CEO and president. An eyewear and sun-wear distributor holds four events a year for employees and their family. It also has its own charity programs in which it matches employees' donations. More...

FINDING SUCCESS AS AN INDEPENDENT WHOLESALER
Genoa Wholesale Foods, a distributor in Pennsylvania, competes with larger distributors and franchises that benefit from economies of scale. The family-owned business says it compensates for its size by relying on quality service and products, and competitive pricing, according to this article from the local paper. “We’re basically selling confidence to our customers,” said Jay Nardone Jr., the 37-year-old grandson of the company founder told the paper.

"Without the independently owned restaurants in our area that find the mutual benefit in supporting a local supplier like us, none of this would have been possible.” More...

REPORT: CUSTOMER DISPLACES COMPETITORS AS FOCAL POINT IN DEVELOPING STRATEGY
A new report featured in BusinessWeek found that the Internet has emerged as an important distribution channel in nearly every industry. As a result, the customer has replaced the direct competitor as a central point in developing strategy. Why? Because competition is coming from new sources, customers are more sophisticated and demanding than ever before, and the proliferation of systems allows for information-driven business models that give a user more control. More...