Wicked profits are tactics put in place to box in, trap, exploit unsuspecting or desperate customers for financial gain. I call it “legal fraud.” It is immoral and the long-term impact can be dire.
I recall one warm afternoon at The Royal Surrey County Hospital where I visited a friend who was on admission. While grabbing a cup of hot chocolate, I noticed a Chinese lady who was on the phone trying to cancel a contract. It was all too familiar and typical. The quick talking, back patting dodgy sales associate from a Telco company had struck again. Yet another new foreign Student caught in a needless long-term contract.
I have had my fair share as well. I remember a Cable TV company that started well but eventually became arrogant and added packages that just did not reflect the consumption of majority of busy football fans like me. We barely have time to watch TV but for weekends and weekdays in evenings. Today, their market share is fast plummeting and quite a number of people within my network and demography have moved on.
Of course, they did not notice early enough because they were swimming in profits. But 4 months after I left them, the phone calls started, and it was all about renewing my subscription.
What’s my point in all of this? Employing tactics that enable wicked profits is not sustainable. It damages your brand name and embarrasses your good employees. High customer switching costs, customer lethargy will not last forever. What are a few things you can do to avoid such disgraceful tactics?
A purpose centered on enriching customer lives so compelling it energizes all stakeholders including employees, the board and investors.
A switch from excessive focus on customer acquisition but equal and better focus on customer retention.
A culture that celebrates the golden rule. “Do unto others as you would have them do unto you.” A quote from Jesus Christ in the Bible. Wicked profits will disappear soon enough with this culture in place.
Finally, it all rises and falls on leadership. Paying lip service will fail to eradicate the vile tactics of wicked profits.