How firing a client could make your business recession-resistant

Posted on March 12, 2010

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When a customer does not fit the clarity of your business they are outside your”sweet spot” and you may have fire them. Here are more reasons why you need to reviewyour customer list and tell some of them that you have to let them go.

  1. You don’t have the time or resources to create Ultimate Customer Experiencesfor everybody devote your attention to those who bring you the most business.
  2. Bad customers complain more and take up more time than great onesstop giving your time and emotion to these customers and center efforts on thosewho are already fans to help them grow to another level.
  3. Customers whocreate bad impressions or cast a negative light on your business are badcustomers who cause stress that you don’t need and at levels that are difficult to manage.

Customers to Fire Customers to Keep
  • Eliminate the bottom. Cut loose those who take time from your effortsbut aren’t delivering in terms of sales.
  • Eliminate the unprofitable.Some “good customers” are unprofitable to serve if they take too much staff time,ask for unreasonable concessions, demand expensive expedited delivery, and more.Remember, the goal for your business isn’t volume, it’s profit.
  • Eliminatethe obsolete. If you have only limited resources, don’t spend inordinatetime and money on customers from declining industries.
  • Support the advancing. Customers in growth industries may not bedelivering high returns now, but will enhance your business as they expand.
  • Support the elite. Find a way to spend more time and resourceswith your most-profitable customers. In many cases, they could expand their currentlevel of business with you if you give them a great reason, such as more attention!
  • Support the “cool.” Sometimes your gut tells you that you needto be attached to a customer because that customer has great potential. Don’t ignorethat feeling!

Only “highly” or “extremely” satisfied customers become advocates for you. By reducingthe number of current customers and focusing on creating compelling experiencesfor the ones who remain, you can create an army of evangelists bringing you moreterrific clients like themselves.

Reference article: Why You Should Fire (Some of) Your Customers

Posted via email from K3 Center Codex

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