Great Customer Service & Trust to make a decision

Bit of an agrument developing around the posting by BusinessPundit on "Great Customer Service at Bed & Bath". He closes the post with:

"Update: Is this great customer service? Some people disagree."

Follow the link to CEO Blogger who argues that this is not great customer service. I can see why he has a problem.

"The problem with implementing a policy of not servicing your worst customers is that you can't really trust low level employees to make that distinction. And you don't want the word to get out to your customers. Therefore a company is best served by erring on the side of too much customer service, leaving decisions to cut off money-losing customers to management.
"

You, as CEO, should have created a work system such that your low level employees are fully capable and trusted to make that distinction.

Yes, 20% of your customers provide 80% of your profits. So how do you grow? You get customers to talk about the good service you provide so that more customers come and buy stuff.

Is your customer relationship system such that you can instantly identify the customer who is your profitable 20%'er? or your not so profitable 80%'er? If you can, great. If you can't, you need to treat them all the same.

By focusing on your employees, your most valuable assets, providing them with the systems, process, and training, and of course, hiring the right people in the first place, then you should be able to trust them to make the distinction. When you do that, they have a vested interest in the company, their goals and objectives are aligned to drive the bottom line, then you should have no problem. The people on your front lines will do very well for you (and the company, and themselves, and your customers).

Your choice.