Bottom-feeding for blockbuster businesses

Marketing experts tell companies to analyze their customer portfolios and weed out buyer segments that don't generate attractive returns. Loyalty experts stress the need to aim retention programs at "good" customers--profitable ones- and encourage the "bad" ones to buy from competitors. And customer-relationship-management software provides ever more sophisticated ways to identify and eliminate poorly performing customers. On the surface, the movement to banish unprofitable customers seems reasonable. But writing off a customer relationship simply because it is currently unprofitable is at best rash and at worst counterproductive. Executives shouldn't be asking themselves, How can we shun unprofitable customers? They need to ask, How can we make money off the customers that everyone else is shunning? When you look at apparently unattractive segments through this lens, you often see opportunities to serve those segments in ways that fundamentally change customer economics. Consider Paychex, a payroll-processing company that built a nearly billion-dollar business by serving small companies. Established players had ignored these customers on the assumption that small companies couldn't afford the service. When founder Tom Golisano couldn't convince his bosses at Electronic Accounting Systems that they were missing a major opportunity, he started a company that now serves 390,000 U.S. customers, each employing around 14 people. In this article, the authors look closely at bottom-feeders--companies that assessed the needs of supposedly unattractive customers and redesigned their business models to turn a profit by fulfilling those needs. And they offer lessons other executives can use to do the same.     

Skills shortages and training: a forgotten dimension in new technology

Skills shortages and training problems are forgotten by many companies when they adopt new technology. 52 engineering firms in a 'traditional' industry in a single local labour market were interviewed to examine their attitudes to new technology and the skills and training implications of technology adoption. Skills and training issues were often forgotten or misjudged during the new technology appraisal process. It was these same areas which created most problems for many companies after adoption. Misjudgements concerning the level of labour force flexibility and training requirements for staff often created problems after the adoption of new technology. Skills shortages for adopting firms are most acute at the skilled level, this predominantly concerns the 'local labour market'. Most firms adopted a short term response to skills shortages. Relatively low utilisation of policy initiatives and 'formal' avenues of assistance prior to new technology adoption were also identified.     

Automating Linguistics-Based Cues for Detecting Deception in Text-Based Asynchronous Computer-Mediated Communications

The detection of deception is a promising but challenging task. A systematic discussion of automated Linguistics Based Cues (LBC) to deception has rarely been touched before. The experiment studied the effectiveness of automated LBC in the context of text-based asynchronous computer mediated communication (TA-CMC). Twenty-seven cues either extracted from the prior research or created for this study were clustered into nine linguistics constructs: quantity, diversity, complexity, specificity, expressivity, informality, affect, uncertainty, and nonimmediacy. A test of the selected LBC in a simulated TA-CMC experiment showed that: (1) a systematic analysis of linguistic information could be useful in the detection of deception; (2) some existing LBC were effective as expected, while some others turned out in the opposite direction to the prediction of the prior research; and (3) some newly discovered linguistic constructs and their component LBC were helpful in differentiating deception from truth.