Unlock Growth: Transform Your Customer Service from a Cost Center to a Value Engine

No company can serve everyone equally. The path forward begins with defining your customer base and identifying target segments based on lifetime value and product and channel fit.

Start by understanding customer-level economics. Which segments offer a balanced exchange of value over time, and which don’t? The answer lies in lifetime value, not simple metrics like acquisition cost. Leaders should make deliberate choices. You want to invest in segments that drive growth and loyalty and thoughtfully transition away from those that don’t through education, partner handoffs, or divestment.

This marks a meaningful shift in mindset. It requires the discipline to say “no” to low-value or misaligned customers and the curiosity to continually test who the business can best serve. This focus helps safeguard scarce investment, strengthen margins, and avoid over-serving unprofitable demand—all while maintaining essential service standards. By directing service toward the right customers, companies can turn it from a cost center into a targeted growth engine.

When needed, divestment shouldn’t mean cutting ties but rather creating better-fit pathways for both customers and the organization. That might include offering a basic service tier, expanding digital self-service, or transitioning customers to partner channels better suited to their needs. These choices are often unavoidable. Continuing to serve misaligned customers drains resources from those who create real enterprise value.

Still, transitions should be managed carefully. Poorly executed divestments can frustrate customers, create friction, and weaken investments in priority segments. A disciplined plan is essential—one that defines when customers should be shifted, how to communicate the change, and what minimum standards of service should be upheld.

To support consistency, companies need a structured framework grounded in metrics such as lifetime value, cost-to-serve, and growth alignment. Each pathway should be explicit: continued investment and delight, migration to a basic service tier, acceleration of automated or “agentic” models, or a thoughtful handoff to partners. The goal is clarity, not constraint—a practical guide that helps leaders allocate resources with confidence while enabling customers to receive fair, predictable service aligned to their value.

All this is unfolding as buying power shifts. Baby boomers, long the base of profitability, are spending less, while Gen Z—though cautious—is showing striking resilience. Over the past three years, they’ve narrowed the spending gap with Gen X, proving they can hold their ground even in tighter conditions. Their influence will only grow: By 2030, Gen Z’s global spending power is projected to reach $12 trillion, according to NielsenIQ and GfK in collaboration with World Data Lab. Understanding this shift will be essential for leaders seeking to build profitable, lasting relationships.