It’s time to do an assessment…because all customers are not created equal.
In fact, if you’re like most businesses, you have some clients that are dragging your business down. I’ve decided to highlight this topic so you don’t hold on to these clients forever.
Interacting with “high maintenance” clients will waste your time, your energy, and there’s a good chance it will have a negative impact on your bottom line. These are the people that you’ll never please, and who will most likely never be highly profitable clients. This type of client will help you to lose opportunities, not gain them.
- You’ll miss out on selling to ideal clients
- You’ll not be able to effectively serve your existing clients who are serious about their business
- Your patience will be pushed to the limit
Watch for and learn to identify these “characters”. If it comes to the point where you need to let them go, just do it.
The penny pincher.
These are your low-profit clients. These are the people who only buy discounted or low-margin items, and are constantly looking for specials. They want 30% off “this” or 50% off “that”, or sone other price that’s inconsistent with the value or service you are providing. You need to be making money from your customers, or there’s no point to keeping them as clients.
The complainer.
These people drain your energy, and suck up your time with long winded stories intended to generate pity. They complain about the quality or performance of your products, with an ever present suggestion that what you offer isn’t quite good enough. People who constantly complain, demand and rage will drain your sales staff, and compromise the service you provide your A-list customers. You’re never going to please these people, so it’s time to move on.
The time-waster.
If you’re spending time with clients who waste your time because they’re never ready or aren’t willing to listen to your advice, run now. These will be the ones that will constantly consume more of your time without providing anything in return and then will wonder why they’re paying you. You can’t help those who don’t help themselves.
The “more for nothing” clients.
These clients always want something extra, at no cost. They want more, and feel they are entitled to it. They’ll never value what you offer, and you will consistently have to justify your prices to them. They’ll try to sneak more in at the last minute, when they’ve worn you down. Even when you do bend to their demands, they’re never grateful for it, and will continue to expect it. They consistently threaten to walk away from the sale. Remember that if they don’t value your product/service now, they probably never will, so you might want to suggest that they shop elsewhere.
Empower yourself and your staff, and say goodbye to unprofitable clients so you can focus your energy where it counts.
Remember that getting out of a relationship you have with a client doesn’t have to be a nasty encounter. There are many polite, professional ways to end a business relationship, and doing so doesn’t make you a bad person! You’re looking out for the best interests of your business, and the people who rely on its profitability.
Each time you let an unprofitable client go, you gain more time to maximize the profitability of your existing clients, and grow your business.
As always, have a great week!
Henry