Eliminate Bad Customers

[Robert]

Source: ClickZ

Identify and Get Rid of Your Worst Customers

http://www.clickz.com/experts/crm/an...le.php/3433521

Snippets:
An oft-overlooked area of customer retention programs is an upfront analysis of whom you do and don't want as a customer. Although it's generally good to keep all your customers happy, some may actually be costing you money and lowering profits.

For companies with the right data, it's possible to identify the types of customers who sap profits and even the specific individuals doing the damage.

[Pinguy]

I have fired four customers in the five years I've been in business. Two of them were in my top 5% of customers for revenue at the time I fired them. The other two were probably around the top 25 - 35%.

After each one I celebrated! It was such a good feeling to be able to make a decision based on the needs of my business, employees and long-term goals and not worry about the lost revenue.

I am in business to make a profit while running an ethical business based on strong customer-service. When one customer continually is a drain on the business, I wouldn't hesitate again to cut them loose.

Bob

[Valerie]

Bob,

Liked what you had to say about "firing" customers... but I had to respond to your post to let you know I was so intrigued by your user name and website that I had to go check it out.

What a great business you have! An interesting niche... I always envy the minds that come up with such great ideas!

Best wishes,
Valerie

[Pinguy]

The business is fun. I started as a pin collector in Lake Placid during the 1980 Olympics. This went on for fifteen years then I really got serious and started collecting hundreds and then thousands of the little pins.

Opened up a web store in 1999 (CheapPins.com - which is now just about all closed up) and viola! Here I am five years later. I feel very blessed and I'm thankful every day.

Take care,

Bob

[Robert]

Originally Posted by Pinguy

I am in business to make a profit while running an ethical business based on strong customer-service.

The bad customers know this and will take advantage of the fact that most small business people will bend over backwards for them.

This is exactly why it's a good idea to cut bait and allow your time to be spent providing service to the customers that aren't always trying to take advantage.

[Robert]

A thread over at Webmaster World covering the same topic is worth a look:

http://www.webmasterworld.com/forum22/3081.htm

(Free reg. required to view there)

[Robert]

Search Engine Lowdown has been reporting on the Webmaster World conference and the following caught my eye:

http://www.searchenginelowdown.com/2...erence_18.html

Snippets:
"Jessie Stricchiola spoke on three main issues in small business development... She then outlined how her company, Alchemist Media, practiced SEO customer retention management:

"Client Selection. Several times, she noted that having quality clients reaps many more rewards than a client who ends up taking up all of your time, or has incredibly unreasonable expectations..."

[Rug Rats]

This is my first post to this forum. The subject is also very interesting to a business owner. I belong to several business groups in our town. When we get together we always talk about our nightmare customers. Wouldn't it be great if there were an organization that rates customers?? As business people we could subscribe to this service (like the Better Business Bureau) and find out who is not a good customer/client. Of course it probably would be an invasion of privacy, but it sure is fun to think about!

There is another idea that sorta goes along with this, and is always brought up at our local meetings. Stupid Customer Tricks. We all have had a story of something funny that a customer did. I have often thought to start a blog or forum on my website for business people to add their Stupid Customer Stories!

Sandy

[amishcraftman]

Robert, you keep coming up with good articles and discussion areas. I like this one but fortunately have only needed to fire one customer in five years. I probably would lean toward too much customer service emphasis to resolve problems but genberally have not needed to yet . I've been lucky I guess.

[SallieS]

THANK YOU Rug Rats
I can't tell you how many times I have wished there was somewhere to post REALLY BAD customers to warn others.

It's amazing how many people think that they're ENTITLED to free services or merchandise just because they're a customer. Or that the phrase "The customer is always right" means that they can get away with anything, including stealing merchandise. Don't get me started I could go on for ever.

As for stories, we have all kinds of stories.