I have a theory. If companies spent some time on firing their bad customers rather than only focusing on acquiring more customers, they would be a lot more successful. I know we’ve always been told that the customer is always right, but the truth is some customers are just more trouble than they’re worth. And if you don’t know when it’s time to let a customer go, you could end up wasting a lot of time, energy, and money dealing with the constant hassle they create.
It’s actually one of the lessons I learned early on when starting my own business. Like most people who start their own company, I was concerned with generating as much business as I could. I got too caught up in the quantity of my customers rather than the quality of my customers. Big mistake.
I quickly found that not all customers are the same. The low quality customers always wanted something for nothing. They always made unreasonable demands, and they ended up eating up a lot of my time and patience. And whenever I did cave to their demands, it would usually end up costing me money. It was all because I was afraid to let a customer go.
Now, I’m not saying you need to let go of any customer who causes you even the slightest inconvenience. That’s not smart business. But you do need to be willing to take a step back and truly examine the profitability of your customers. You need to look at them and ask yourself if continuing to take their business is worth the hassle they put you through. In other words, is that juice worth the squeeze?
How do you know if it’s time to let a customer go?
It’s unfortunate, but not all situations with customers have a cure. Sometimes, you have to fire a client.
Have you ever had to make the decision to let a customer go? What led to your decision?
This article is written by Mickie Kennedy, founder of eReleases (http://www.ereleases.com), the online leader in affordable press release distribution. Grab your free 160-page copy of the Big Press Release Book – Press Releases for Every Occasion and Industry here: http://www.ereleases.com/insider/bigbook.html