Bad Customers

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The Bad Customer – How Do You Recognize The Customer Who is Harming Your Business?

Why on earth would you want to fire a customer? Well if they cost you more money and effort than the profit you make from them – then it is time for you to remove them from your mailing lists and your marketing activities. Here’s 7 ways to recognize the bad customer.

The always quibble over prices – ensuring that your profit is minimal.
They are really slow to pay, costing your extra money in financing your cash flow.
They never seem happy with the service you provide and are keen to tell not only your staff but other customers. Not only is this moral sapping for your staff, but damaging to your business.
They never refer any new business to you, never speak well of your company.
Their order has remained small and spasmodic.
They display no loyalty to your company and often go off to other companies for their orders.
They are very difficult to establish a working relationship with you.

If you have customers that are displaying more than two of the above characteristics then you need to examine very carefully what profit and advantages keeping this customer is providing your company.

Is there a way that you can change these bad customers into better customers?

Ensure that they understand exactly what level of service, cost structure and payment terms their account operates under.
Try and address your customers complaints on a once only attempt.
Provide incentives to your customers to refer other business to you.

So how do you get rid of the bad customers?

Increase the pricing structure and decrease the payment terms. Similarly increase the delivery time.
Remove them from your marketing strategies and mailing lists.
If all else fails then write to them and politely remove them from your customer base, citing change of policies or similar.

Always be polite and remember – that a customer’s complaints and late payment might be because you of how you have interacted with them! Maybe if you have too many bad customers you should be looking at that as well!

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Lee Lister writes as The Biz Guru, for a number of web sites including her www.clikks.com where she sells her informational products. With over 20 year’s management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses.

If you would like more help and assistance in setting up your new business then visit www.startmynewbusiness.com for advice and assistance.

This article may be freely distributed if this resource box stays attached.

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