1. Why Service Stinks

2. Methods used by companies to sort their customers
Coding – how profitable is the account?
Routing – different routing by call center to different queues based on code
Targeting – special treatment (waving of fees or hidden discounts) based on value
Sharing – companies may sell transaction history to other companies.

3. Is this Fair?
Increased labor costs require “selective” service, or reduced overall service.
May also be accompanied by a reduction in cost
Customers may be responsible for this phenomenon - many customers prefer price, choice, and convenience over high quality service.

4. Issues on Privacy
Redlining – identifying and avoiding unprofitable neighborhoods or types of people
Programs may be invisible – customers may not realize they are missing out on services or deals.

5. Drawbacks to Tiering
Most programs are unable to measure the potential value of customers
Depend on past transactions not predictors of future behavior
Low activity may be a result of dissatisfaction with company’s current or past practices and offerings.
Should make trade off between price and service clear to customers so that they may make a decision as to which tier they desire.