There’s a rule in business that you should ‘fire’ 10% of your customers every year. It will free your resources to serve other, more profitable, clients. Working with some clients costs you money, decreases your staff’s morale and affects your relationships with other clients. Not to mention that it can cost you your peace of mind. For most businesses, around 80% of the income comes from 20% of the clients. Eliminating the 10% worst clients allows you to focus more energy on the top 20% that deserves it.
So how do you recognize a ‘bad’ customer?
Swaps Vendors in Your Industry and Boasts About It
A customer who openly admits to having changed vendors in the industry on regular basis, and because of details or small price differences, is very unlikely material for a loyal client. Some clients constantly look for a better deal and will leave you the minute they find one.
Your Staff Complains About Them
Your employees are the first ones feeling the pressure from bad customers. They are also the first to show signs of problems. Learn to listen and trust them. If you hear them constantly complain about a particular person, you should take a closer look to see whether you’re dealing with a bad customer.