There is no question who the annoying customers are. They make themselves well-known to management and staff. Some employees will go as far as leaving descriptive notes in client profiles so others are aware of the potential for a combustible interaction. It does not matter if your group does an amazing job for these clients. They are not satisfied, and they will make it known. Some will even go as far as changing your work and claiming they have corrected it. These customers are a major thorn in the side of your MSP business. It is time to pluck and toss them. Here’s why:
Consider How a Bad Customer Damages the Business
The average MSP business can only support so many customers. An annoying customer will chew up organizational resources. If there are numerous problem customers pilfering your team’s time and energy, the clients who are truly engaged won’t be tended to in a timely manner. So, don’t try to serve those difficult customers exactly as they demand. In many instances, they are not worth the time. The bottom line is the opportunity cost of appeasing problem customers is massive. Your team could have spent that time and effort engaging customers and prospects who add to your bottom line.
Wasting resources on problem customers only hinders your team’s ability to serve all the company’s customers. Do not discount the fact that demanding and annoying customers put team members in a bad mood. Resulting feelings of depression, sadness, pain, and frustration have the potential to prove contagious as employees interact. Do not let this happen to your team! Kick those annoying customers to the curb today and your group won’t mind going to work.
Accommodating Problematic Customers is Not the Right Thing to Do
Too many business owners, managers, and customer service representatives give in to client demands or interact with them for extended periods of time simply because they believe it is the right way to treat customers. Yet continuing to engage these problem customers has the potential to cause more damage than would occur if they were cut off. The right thing to do is eliminate the time-consuming, resource-draining customers to make life better for everyone else.
Pinpointing The “Bad” Customers
Take a close look at your business’s financials. Find out what percentage of clients is responsible for the most business. There is a good chance you will find a fairly small number of customers account for a large portion of sales. You will also find few customers are responsible for lengthy interactions with employees concerning various conflicts and complaints.
Take the time to identify the small number of customers to blame for the majority of these customer service headaches, phone call escalations and other time-consuming issues. Aside from chewing up your resources, these bad apples typically order few items and are highly sensitive to price fluctuations. They rarely refer other customers. The worst part is they regularly interact with staff members regarding complaints that usually have little, if any, merit. Analyze just how much these few customers have negatively impacted your business and you will understand why firing them is a prudent business decision.
The Issue of Scarcity
If there is no issue in terms of prospect scarcity, go ahead and let those bad clients go without hesitation. There are other fish in the sea. It won’t take long to replace the problem clients with those who do not overwhelm resources and spend little. So, do not hesitate to pull the trigger if scarcity is of no concern.
The Customer Is Not Always Right!
The moral of the story is some customers really do deserve to be fired. If you are not struggling to find new customers or retain your current ones, be brave and halt MPS business services to those who cause problems. The benefits of cutting these bad apples loose will likely outweigh the revenue lost by eliminating them. Follow through with a customer termination and there is an excellent chance it really will prove more profitable than keeping and appeasing them across the long haul.