What’s Your Hurry? Here’s Your Hat!

by Scott Loftesness on March 8, 2009

in Credit Card Issuers, Credit Cards, Credit Crisis, Scott Loftesness

In his New Yorker column this week titled “House of Cards“, James Surowiecki writes about how some US credit card issuers are trying to shed some of their existing customers.

In effect, they’re trying to follow the advice given by Larry Selden and Geoffrey Colvin in a book called “Angel Customers and Demon Customers.” Not all customers are equal, it turns out: some are tremendously profitable, while others, like the guy who calls customer service six times a day to check his account balance, cost more than they’re worth. To boost profits, you must cultivate the angels and protect yourself against the demons.

Read the full article – Surowiecki lays out the issues of how credit card issuers have become addicted to revolvers – and how those same revolvers are responsible for the risks they’re most worried about now – and how the issuers are suddenly trying to exit those relationships ASAP.

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