Companies

knowjust
how good
a customer
you are-and
unless you're a
high roller,

WHY they would

rather
lose you than

SERVICE take the time

tofixyour
problem
 hen Tom Unger of New Haven started
banking at First Union Corp. several Cover Story
years ago, he knew he wasn't top of
the heap. But Unger didn't reahze just BY DIANE BRADY
how dispensable he was until mysteri- ILLUSTRATIONS BY JOHN UELAND
ous service charges started showing up
on his account. He called the bank's toll-free number, only to reach a bored service repre-
sentative who brushed him off. Then he wrote two letters, neither of which received a re-
sponse. A First Union spokeswoman, Mary Eshet, says the bank doesn't discuss indi-
vidual accounts but notes that customer service has been steadily improving. Not for
Unger. He left. "They wouldn't even give me the courtesy of listening to my com-
plaint," he says.
And Unger ought to know bad service when he sees it. He works as
a customer-service representative at an electric utility where the top
350 business clients are served by six people. The next tier of 700
are handled by six more, and 30,000 others get Unger and one
other rep to serve their needs. Meanwhile, the 300,000 resi-
dential customers at the lowest end are left with an 800
number. As Unger explains: "We don't ignore anyone.

FLYING
Canceledflight?No problem. With
top status, you're whisked past the
queue, handed a ticketfor the next
flight, and driven to theflrst-
class lounge. The rest can
cross theirflngers and
come back tomorrow
but our biggest customers certainly get more attention
[than the rest."
As time goes on, that service gap is only growing
wider. Studies by groups ranging from the Coun- Big spenders can expect special
cil of Better Business Bureaus Inc. to the discounts, promotional offers,
University of Michigan vividly detail what
consumers already know: Good service is and other goodies when they
increasingly rare (charts). From passen- / open their bills
gers languishing in airport queues to
bank clients caught in voice-mail hell,
most consumers feel they're getting
squeezed by Corporate America's push
for profits and productivity. The re-
sult is more efficiencies for compa-
nies—and more frustration for their
less valuable customers. "Time saved
for them is not time saved for us," says
Claes Fomell, a University of Michigan
professor who created the school's consumer
satisfaction index, which shows broad declines
across an array of industries. Fomell points to
slight improvements in areas like autos and computers
Andrew Chan's experience with Ikea is typical. The Man-
hattan artist recently hauled a table home from an Ikea
store in New Jersey only to discover that all the screws and
brackets were missing. When he called to complain, the gi-
ant furniture retailer refused to send out the missing items
and insisted he come
back to pick them up
Cover Story himself, even though
he doesn't own a car.
Maybe he just reached the vsTong guy, says Tom Cox, cus-
tomer-service manager for Ikea North America, noting that
the usual procedure is to mail small items out within a
couple of days.
NO ELEPHANT? Life isn't so tough for everyone, though. Roy
Sharda, a Chicago Intemet executive and road warrior is a
"platinum" customer of Starwood Hotels & Resorts World-
wide. When he wanted to propose to his girlfriend. Star-
wood's Sheraton Agra in India arranged entry to the Taj Ma-
hal after hours so he could pop the question in private.
Starwood also threw in a horse-drawn carriage, flowers, a per-
sonalized meal, upgrades to the presidential suite, and a
cheering reception line led by the general manager. It's no gy boom, where marketers can amass a mountain of data that
wonder Sharda feels he was "treated like tme royalty." gives them an almost Orwellian view of each buyer. Con-
Welcome to the new consumer apartheid. Those long lines sumers have become commodities to pamper, squeeze, or
and frnstrating telephone trees aren't always the result of toss away, according to Leonard L. Berry, marketing profes-
companies simply not caring about pleasing the customer sor at Texas A&M University. He sees "a decline in the level
anymore. Increasingly, companies have made a deliberate of respect given to customers and their experiences."
decision to give some people skimpy service because that's all More important, technology is creating a radical new busi-
their business is worth. Call it the dark side of the technolo- ness model that alters the whole dynamic of customer service.

AIRLINES BANKS STORES HOTELS PERSONAL

COMPUTERS
SATISFACTION
TAKES A
NOSEDIVE...

I BASED ON ANNUAL POIL

OF MORE THAN 50,000
CUSTOMERS, MEASURING
OVERALL SATISFACTION WITH
PRODUCTS AND SERVICES.
" ' 9 4 '95 '96 '97 '98 '99 '00 ' ' 9 4 '95 '96 '97 '98 '99 '00 '94 '95 '96 '97 '98 '99 '00 '94 '95 '96 '97 '98 '99 '00
SCALE: 1-100 '94 '95 '96 '97 '98 '99 '00
DATA: UNIVERSITY OF MICHIGAN BUSINESS SCHOOL'S AMERICAN CUSTOMER SATISFACTION INDEX

I N G
The rest might get higherfees,
stripped-down service, and a
machine to answer their
questions
For the first time, companies can truly measure exactly what
such service costs on an individual level and assess the return
on each dollar. They can know exactly how much business
someone generates, what he is likely to buy, and how much it
costs to answer the phone. That allows them to deliver a lev-
el of service based on each person's potential to produce a
profit—and not a single phone call more.
The result could be a whole new stratification of consumer
society. The top tier may enjoy an unprecedented level of per-j
sonal attention. But those who fall below a certain level o:
profitability for too long may find themselves^
bounced from the customer rolls altogether or
facing fees that all but usher them out the
door. A few years ago, GE Capital decided to '
charge $25 a year to GE Rewards Master-
Card holders who didn't rack up at least
that much in annual interest charges. The
message was clear: Those who pay their
bñls in full each month don't boost the
bottom line, GE has since sold its cred-
it-card business to First usA. Others
are charging extra for things like de-
liveries and repairs or reducing service
staff in stores and call centers.
Instead of providing premium service
across the board, companies may offer to
move people to the front of the line for a fee.
"There has been a fundamental shift in how
companies assess customer value and apply their re-
sources," says Cincinnati marketing consultant Richai-d G.
Barlow. He argues that managers increasingly treat top
clients with kid gloves and cast the masses "into a labyrinth
of low-cost customer service where, if they complain, you
just live with it."
Companies have always known that some people don't
pay their way. Ravi Dhar, an associate professor at Yale
University, cites the old rule that 80% of profits come from
20% of customers. "The rest nag you, call you, and don't add
much revenue," he says. But technology changed everything.
To start, it has become much easier to track and measure in-
dividual transactions across businesses. Second, the Web has
also opened up options. People can now serve themselves at
their convenience at a negligible cost, but they have to accept
little or no human contact in return. Such huge savings in ser-
vice costs have proven irresistible to marketers, who are
doing everything possible to push their customers—especial-
ly low-margin ones—toward self-service.
FRONT-LOADING ELITE. That's a far cry from the days when
the customer was king. In the data-rich new millennium,
sales staff no longer let you return goods without question
while rushing to shake your hand. And they don't particularly
want to hear from you again unless you're worth the effort.
How they define that top tier can vary a lot by industry. Air-
lines and hotels love those who buy premier offerings again
and again. Financial institutions, on the other hand, salivate
over day traders and the plastic-addicted who pay heavy
interest charges because they cover only the minimum on
their monthly credit-card bills.
Almost everyone is doing it. Charles Schwab Corp.'s top-

PHONE* CONSUMER HOW COMPLAINTS ABOUT PHONE

COMPLAINTS SERVICE BREAK DOWN
...AS CUSTOMERS
BEEF ABOUT A
WIBE RANGE
OF OFFENSES
MINORITY
BIAS
BLIND UNRESPONSIVE
TRANSFER
TEIEMARKETERS
NOT TRAINED RUDENESS
'34 J 5 '96 '97 '98 '99 '00 '95 '96 '97 '98 '99 WEU
•LOCAL AND LONG-DISTANCE DATA: COUNCIL OF BEnER BUSINESS BUREAUS DATA: FEDERAL COMMUNICATIONS COMMISSION
rated Signature cUents—who start with at least $100,000 in Lyons, chief marketing officer at Charles Schwab, points out
assets or trade 12 times a year—never wait longer than 15 that the commission charged on Schwab stock trades has
seconds to get a call answered, while other customers can dropped by two-thirds over the past five years. Costs to
wait 10 minutes or more. At Sears, Roebuck & Co., big Schwab, meanwhile, vary from a few cents for Web deals to
spenders on the company's credit card get to choose a pre- several dollars per live interaction. And companies note that
ferred two-hour time they're delivering a much wider range of products and services
slot for repair calls than ever before—^as well as more ways to handle transactions.
Cover Story whue regular patrons Thanks to the Internet, for example, consumers have far bet-
are given a four-hour ter tools to conveniently serve themselves.
slot. Maytag Corp. provides premium service to people who Look at a company like Fidelity Investments, which not
buy pricey products such as its front-loading Neptune wash- only has a mind-boggling menu of fund options but now lets
ing machines, which sell for about $1,000, twice the cost of a people do research and manipulate their accounts without an
top-loading washer. This group gets a dedicated staff of intermediary. Ten years ago, the company got 97,000 calls a
"product experts," an exclusive toll-free number, and speedy day, of which half were automated. It now gets about 550,000
service on repairs. When people are paying this much, "they Web site visits a day and more than 700,000 daily calls,
not only want more service; they deserve it," says Dale about three-quarters of which go to automated systems that
Reeder, Maytag's general manager of customer service. cost the company less than a buck each, including develop-
ment and research
Of course, while costs. The rest are
some companies gloat handled by human be-
about the growing at- ings, which costs about
tention to their top $13 per call. No won-
tier, most hate to ad- der Fidelity last year
mit that the bottom contacted 25,000 high-
rungs are getting less. cost "serial" callers
GE Capital would not and told them they
talk. Sprint Corp. and must use the Web or
WorldCom Inc. de- automated calls for
clined repeated re- simple account and
quests to speak about price information. Each
service divisions. Off name was flagged and
the record, one compa- routed to a special
ny official explains that representative who
customers don't like to would direct callers
know they're being back to automated ser-
treated differently. vices—and tell them
Obviously, taking how to use it. "If all
service away from the our customers chose to
low spenders doesn't go through live reps,
generate much positive it would be cost-pro-
press for companies.
Look at AT&T, which B A N K I N G hibitive," says a Fi-
delity spokeswoman.
recently agreed to re- There's nothing like a big bank account to get ENTITLED? Segmenting
move its minimum us- is one way to manage
age charges on the 28 those complaints answered and service charges those costs efficiently.
ndllion residential cus-
tomers in its lowest- waived every time. Get pegged as a money-loser, Bass Hotels & Re-
sorts, owners of such
level basic plan, many and your negotiating clout vanishes brands as Holiday Inn
of whom don't make and Inter-Continental
enough calls to turn a Hotels, know so much about individual response rates to its
profit. "To a lot of people, it's not important that a company promotions that it no longer bothers sending deals to those
make money," says AT&T Senior Vice-President Howard E. who did not bite in the past. The result: 50% slashed off
McNally, who argues that AT&T is still treated by regula- mailing costs but a 20% jump in response rates. "As infor-
tors and the public as a carrier of last resort. Now, it's trying mation becomes more sophisticated, the whole area of cus-
to push up profits by giving top callers everything from bet- tomer service is becoming much more complex," says Chief
ter rates to free premium cable channels. Marketing Officer Ravi Saligram.
SERIAL CALLERS. Is this service divide fair? That depends
on your perspective. In an era when labor costs are rising Consumers themselves have cast a vote against high-qual-
while prices have come under pressure, U. S. companies insist ity service by increasingly choosing price, choice, and conve-
they simply can't afford to spend big bucks giving every nience over all else. Not that convenience always takes the
customer the hands-on service of yesteryear. Adrian J. Sly- sting out of rotten service—witness priceline.com Inc., the ul-
wotzky, a partner with Mercer Management Consulting Inc., timate self-service site that lets customers name their own
estimates that gross margins in many industries have shrunk price for plane tickets, hotels, and other goods. Many con-
an average of 5 to 10 percentage points over the past decade sumers didn't fully understand the trade-offs, such as being
because of competition. "Customers used to be more profitable forced to stop over on flights, take whatever brand was hand-
10 years ago, and they're becoming more different than sim- ed to them, and forgo the right to any refund. And when
ilar" in how they want to be served, he says. things went wrong, critics say, no one was around to help. The
The new ability to segment customers into ever finer cate- result: a slew of complaints that has prompted at least one
gories doesn't have to be bad news for consumers. In many state investigation. Priceline.com responds that it's revamping
cases, the trade-off in service means lower prices. Susanne D. the Web site and intensifying efforts to improve customer ser-
vice. While many consumers refuse to pay more for service, focus on data is leading to service that's better than ever. To
they're clearly dismayed when service is taken away. "People start with, it's more customized. And while executives admit
have higher expectations now than two or three years ago be- to pushing self-help instead of staff, they contend that such
cause we have all this information at our fingertips," says service is often preferable. After all, many banking cus-
Jupiter Communications Inc. analyst David Daniels. tomers prefer using automated teller machines to standing in
Indeed, marketers Une at their local branch. American Airlines Inc., the pioneer
point to what they of customer segmentation with its two-decade-old loyalty
Cover Story call a growing culture program, says it's not ignoring those in the cheap seats,
of entitlement, where pointing to the airline's recent move to add more legroom in
consumers are much more demanding about getting what economy class. Says Elizabeth S. Crandall, managing dii-ector
they want. One reason is the explosion of choices, with of personalized marketing: "We're just putting more of our en-
everything from hundreds of cable channels to new players ergies into rewarding our best customers."
emerging from deregulated industries like airlines and tele- MARKED MAN. This segmentation of sales, marketing, and
com companies. Meanwhile, years of rewards programs such service, based on a wealth of personal information, raises
as frequent-fiier miles some troubling ques-
have contributed to tions about privacy. It
the new mind-set. threatens to become
Those who know their an intensely personal
worth expect special form of "redlining"—
privileges that reflect the controversial prac-
it. Says Bonnie S. Re- tice of identifying and
itz, senior vice-presi- avoiding unprofitable
dent for marketing, neighborhoods or
sales, and distribution types of people. Un-
at Continental Airlines like traditional loyalty
Inc.: "We've got a programs, the new
hugely educated, in- tiers are not only
formed, and more ex- highly individualized
perienced consumer but they are often in-
out there now." visible. You don't
know when you're be-
For top-dollar ing directed to a
clients, all this tech- different telephone
nology allows corpora- queue or sales promo-
tions to feign an tion. You don't hear
almost small-town in- about the benefits
timacy. Marketers can you're missing. You
know your name, your L O D G I N G don't realize your
spending habits, and power to negotiate
even details of your Another day, another upgrade for frequent guests. with everyone from
personal life. Centura gate agents to bank
Banks Inc. of Raleigh, Sip champagne before the chefprepares your employees is prede-
N. C, now rates its 2
million customers on meal. First-time guest? So sorry Your room is up that pops byup the termined code
next to
a profitability scale
from 1 to 5. The real
threeflightsand to the left your name on a com-
puter screen.
moneymakers get calls
from service reps several times a year for what Controller When the curtain is pulled back on such sophisticated
Terry Earley calls "a friendly chat" and even an annual tiering, it can reveal some uses of customer information that
call from the CEO to wish them happy holidays. No wonder are downright disturbing. Steve Reed, a West Coast sales ex-
attrition in this group is down by 50% since 1996, while the ecutive, was shocked when a United Airlines Inc. ticketing
percentage of unprofitable customers has slipped to 21% agent told him: "Wow, somebody_ doesn't like you." Not only
from 27%. did she have access to his Premier Executive account infor-
Even for the lower tier, companies insist that this intense mation but there was a nasty note about an argument he had

CODING ROUTING TARGETING SHARING

Companies have
Some companies Based on the Choice Companies sell
become data about your
'WE'RE SORRY, grade customers customer's code, customers have
sophisticated fees waived and transaction
based on how call centers route
ALL OF OUR aboutfiguring
profitable their customers to get other hidden history to
AGENTS ARE out if you're
business is. They different queues. discounts based outsiders. You
worth on the value of can be slotted
BUSY WITH give each Big spenders are
their business. before you even
pampering—or account a code whisked to high-
MORE VALUABLE whether to just with instructions level problem Less valuable walk in the door,
CUSTOMERS' let the phone to service staff solvers. Others customers may since your
keep ringing. on how to may never speak never even know buying potential
handle each to a live person the promotions has already been
Here are some of
category. at all. exist. measured.
their techniques:
lad with a gate agent in San Francisco several months ear- service agent for a phone conversation. The rest never see it.
lier. In retrospect, he feels that explained why staff seemed First Union, meanwhile, codes its credit-card customers with
less accommodating following the incident. Now, Reed refus- tiny colored squares that flash when service reps call up an
es to give more than his name for fear "of being coded and account on their computer screens. Green means the person is
marked for repercussions." United spokesman Joe Hopkins a profitable customer and should be granted waivers or oth-
says such notes give erwise given white-glove treatment. Reds are the money
agents a more com- losers who have almost no negotiating power, and yellow is a
Cover Story plete picture of pas- more discretionary category in between. "The information
sengers. "It's not al- helps our people make decisions on fees and rates," explains
ways negative information," says Hopkins, adding that the First Union spokeswoman Mary Eshet.
practice is common throughout the industry. Banks are especially motivated to take such steps because
Those who don't make the top tier have no idea how good they have one of the widest gaps in profitability. Market Line
things can be for the free-spending few. American Express Co. Associates, an Atlanta financial consultancy, estimates that
has a new Centurion concierge service that promises to get the top 20% of customers at a typical commercial bank gen-
members almost anything from anywhere in the world. The erate up to six times as much revenue as they cost, whue the
program, with an annual fee of $1,000, is open by invitation bottom fifth cost three to foiu- times more than they make for
only. "We're seeing a lot of people who value service more than the company. Gartner Group Inc. recently found that, among
price," says Alfred F. banks with deposits of
Kelly Jr., AmEx group more than $4 billion,
president for consumer 68% are segmenting
and small-business ser- customers into prof-
vices. Dean Burri, a itability tranches while
Rock Hill (S. C.) insur- many more have plans
ance executive, foimd to do so.
out how the other half Tiering, however,
lives when he joined poses some drawbacks
their ranks. Once he f'or marketers. For one
became a platinum thing, most programs
customer of Star- fan to measure the po-
wood Hotels, it tential value of a cus-
seemed there was tomer. Most companies
nothing the hotel can still measure only
operator wouldn't do past transactions—and
for him. When the some find it tough to
Four Points Hotel in combine information
Lubbock, Tex., was from different business
completely booked for Tinits. The problem, of
Texas Tech freshman course, is that what
orientation in August, someone spends today
it bumped a lower-sta- is not always a good
tus guest to get Burri RETAILING predictor of what
a last-minute room. they'll spend tomor-
Starwood says that's Welcome to an after-hours preview for key row. Life situations
part of the platinum customers where great sales abound and staff and spending habits
policy, noting that can change. In some
ejected customers are await your every need. Out in the aisles, cases, low activity may
put elsewhere and com- be a direct result of
pensated for inconve- it's back to self-service the consumer's dissat-
nience. With the right isfaction with current
status, says Burri, "you get completely different treatment." offerings. "We have to be careful not to make judgments
The distinctions in customer status are getting sliced ever based on a person's interaction with us," cautions Steven P.
finer. Continental Airlines Inc. has started rolling out a Cus- Young, vice-president for worldwide customer care at Compaq
tomer Information System where every one of its 43,000 Computer Corp.'s consumer-products group. "It may not re-
gate, reservation, and service agents will immediately know flect their intentions or future behavior."
the history and value of each customer. A so-called intelligent PAY NOT TO WAIT? Already, innovative players are striving to
engine not only mines data on status but also suggests reme- use their treasure trove of Information to move customers up
dies and perks, from automatic coupons for service delays to the value chain instead of letting them walk out the door.
priority for upgrades, giving the carrier more consistency Capital One Financial Corp. of Falls ChTirch, Va., is an ac-
in staff behavior and service delivery. The technology will knowledged master of tiering, offering more than 6,000 cred-
even allow Continental staff to note details about the pref- it cards and up to 20,000 permutations of other products, from
erences of top customers so the airline can offer them extra phone cards to insTirance. That range lets the company match
services. As Vice-President Reitz puts it: "We even know if clients with someone who has appropriate expertise. "We
they put their eyeshades on and go to sleep." Such tiering look at every single customer contact as an opportunity to
pays off. Thanks to its heavy emphasis on top-tier clients, make an unprofltable customer profitable or make a prof-
about 47% of Continental's customers now pay higher-cost, un- itable customer more profitable," says Marge Connelly, senior
restricted fares, up from 38% in 1995. vice-president for domestic card operations.
Elsewhere, the selectivity is more subtle. At All First In the future, therefore, the service divide may become
Bank in Baltimore, only those slotted as top customers get much more transparent. The trade-off between price and ser-
the option to click on a Web icon that directs them to a live vice could be explicit, and customers wül be able to choose
ivhere they want to fall on that continuum. In essence, cus-
tomer service will become just another product for sale. Walk-
fer Digital, the research lab run by priceline.com founder Jay S.
Walker, has patented a "value-based queuing" of phone calls
that allows companies
to prioritize calls ac-
Cover Story cording to what each
person vñll pay. As
Valker Digital CEO Vikas Kapoor argues, customers can say: "I
don't want to wait in line—I'll pay to reduce my wait time."
For consumers, though, the reality is that service as we've
known it has changed forever. As Roger S. Siboni, chief ex-
ecutive of customer-service software provider E.piphany Inc.,
points out, not all customers are the same. "Some you want to
absolutely retain and throw rose petals at their feet," Siboni
says. "Others will never be profitable." Armed with detailed
data on who's who, companies are learning that it makes fi-
nancial sense to serve people based on what they're worth.
The rest can serve themselves or simply go away.
With bureau reports
BusinessWeek online
How are companies treating you? Tell us what you think
about customer service by joining an online forum at
www.forums.businessweek.com/bw-magazine/start/

HOW TO IMPROVE YOUR PROFILE i

ven if you're not a big spender, look, the better you'll be treated. have slightly different records based

E there are ways to improve your

standing with companies in or-
der to command better service. The
key is to recognize that your spend-
Still, it's tough to keep personal
information to yourself, especially
when companies are compiling data
on who reports to them,
Multiple credit cards can be a
mistake, especially if they're the no-
on the business they do vwth you. A frills variety that are frequently of-
ing habits, payment history, and any critical concern for all consumers is fered to less desirable candidates,
information you volunteer can be their actual payment record. Donna ,, Not only can they
used for or against you. What's more, Fluss, a vice-president at the tech- ^ * ^ * , Jji,, '^^^^P- ^^^ credit you
if you do think you're being pegged nology consultants Gartner Group ^ H I E ^ ^ Ä L ™^Sht need for
at a low tier, there are ways to get Inc., advises pulling your credit ^^Jf ^ » a . H k °ther activiti|^
the recognition you feel __ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ MB^fe^ '^^^Hj^Bl^ ^^*'. ^^^^'^^
The first step in fight- I^^HHiiii^HHi^H ^^^^^^^\^^^BF ^^^ ^°" ^^^° ^
be stingy with the mfor- W^^EEkJ^f' Usmg a spouses
mation you give out How to get better service ^^^^MHHMPV^ card or account is
especially if it's unlikely CONSOLIDATE YOUR ACTIVITIES Few things ele-" cause\°t robr°ou^of a^"
Dnn't fill nut «siirvpvs! vate status anu trim COSTS iiKe spenaing ig chance to build your own
i^oii uu uut OUI vcjB, place. Be on the lookout for packages or programs that P^PHÎI- >ii>5t-nrv Tf a mis
applications if you're not ^.^^.^^.^1°X^L^.^!^.^1\°1-. - take is made on your ac-
comfortable with how PROTECT YOUR PRIVACY Avoid surveys and be frugal count, fight it.
the information might with releasing credit-card or Social Security information. P™^ disagree on tac-
be used. Be wary when The less companies know, the less they can slot you. tics for bypassing the
a company asks if it can " service maze. One cus-
alert you to other prod- JUMP THE PHONE QUEUE If you want to reach a live tomer representative ar-
ucts and services. A yes human, don't admit to having a touch-tone phone at gues that when calling a
may permit them to sell the prompt. Or listen for options that are less likely to service center it's better
data that you don't want be handled automatically. to punch in no account
FIGHT BACK If you feel badly treated, complain. Make
Ihe Con- ^^^^ management knows just how much business you
pom s ou represent and that you're willing to take it elsewhere. identification, he says, a
fill out surveys with live person has to get on
warranty cards. Just send in a proof history at least once a year to check the line. "Pretend you're calling
of purchase with your name and ad- if there are any liens or mistakes. from a rotary phone," he advises,
dress. "Protecting your privacy is a "You may discover that you're listed But another tactic may be to punch
significant tool to prevent yourself as having missed a payment that zero or choose an option that's likely
from being pigeonholed as undesir- you thought you made on time," she to get immediate attention,
able," says Gene Kimmelman, says. The three main reporting bu- In the end, resistance may be fu-
Washington co-director for the cu. reaus—Experian, Trans Union, and tile, and the best strategy for beat-
It's equally important to recognize Equifax—charge a small fee for a ing the system may be to join it.
what kind of information companies copy of your credit history. If, how- Shop around for the best company,
are looking for. If you don't live in ever you have recently been denied and try to consolidate your business
an upmarket Zip Code, consider credit, employaient, or insurance, there. These days, the best way to
using your work address for such a report is free from all three ensure good service is to make your-
correspondence. Be optimistic companies. The largest bureau is self look like a high-value, free-
when estimating your income or Equifax, which has data on 190 mil- spending customer. .^^
spending: The better the numbers lion Americans, but all three may By Diane Brady in New York • •
Copyright of BusinessWeek is the property of Bloomberg, L.P. and its content may not be
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