- Revenue generated through activities that create value for the customer
- Revenue generated through activities that do not create value to the customer.
There are a lot of companies that make a lot of money by charging customers for activities that have no value for the customer. And when this happens, customers revolt, and customers defect. When customers defect, they need to be replaced, and replacing customers costs money in the form of advertising and promotions. While the "easy money" that a company can earn over the short term through miscellaneous fees and service charges can be very tempting, the cancerous cost of customer discontent and defection can hurt the company over the long haul.