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Interview Patty

Say Goodbye to Your Worst Clients

Dealing with difficult customers

You may think that any paying customer is a customer worth having, but I’d argue that some customers are more trouble than they’re worth.

You’ll always get the customers you’re willing to accept, but there are some who actually cost you money every time you deal with them.

The 80:20 rule (also called the Pareto Principle) states that 20% of your business comes from 80% of your customers, which also means that 80% of your headaches will generally come from just 20% of your customers.

The first step in dealing with difficult customers, is actually to identify them. Make a list of the qualities you want in your ideal customers. This may include things like: “they pay on time”, “they don’t fight me on my quotes” or “they refer their friends to me”.

Now, go through your customers and categorise them into four “grades” – A, B, C or D.

An A-grade customer is your favourite kind of customer. This person probably pays your invoices on time, is pleasant to deal with, is happy to pay your quoted price, refers people to you, spends a reasonable amount with you and ticks the other boxes you listed for ideal customers. If you could clone a customer, this person would be the one you’d choose.

B-grade customers are still good customers, although they’re not quite perfect. They might be more price-conscious, but they still pay on time and don’t give you headaches.

C-grade customers give you minor headaches. They’re the type that haggle for a discount every time you deal with them or frequently return goods because they’ve changed their mind. They don’t take your advice, and tend to pay late and need to be nagged.

D-grade customers are those you wish you’d never encountered. They are the scene-causers, the ones who treat you and your staff like dirt, or even those you might suspect of shoplifting. They complain about anything and everything, and they do it loudly and rudely.

The easiest way to get rid of your “lower-grade” customers is to create some new rules to protect yourself, and stick to them. For example:

    We are phasing out our in-house account facility
    We are discontinuing our entry-level plan
    We will no longer offer discounts

Remember that every business is different. Someone you might regard as an A-grade customer may be considered C-grade by someone else and vice versa.

Don’t let guilt or a sense of duty hold you back from letting go of poor customers – consider that they may take their business to a company that suits them better, and leave you more room for additional A-grade customers of your own.

Read the full article at:  destinyconnect.com

Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.

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