firing bad customers…how? why? when? (36 posts)

  • With the economy such a challenge, one would think any and every customer is wanted. However, once in a while a bad, undesirable, sucking-all-your-energy-out-and-not-being-a-good-ROI.one comes along.

    How do you “fire” that customer?

    Why? (that’s kind of obvious but you might have more to say about it)

    When do you know it is the right time?

    Do you have your ideal client so defined that you never have the bad ones?

    What’s your story?

  • My assistant used to have a saying for clients that I needed to fire…PITA….pain in the a#$.  Once I realized the drain, and realized it was not worth the $$$ it was much easier to say goodbye!

    I raised my fees, and gave myself more value which eliminated the ‘Kmart’ shoppers….

  • good call, I raised the prices, too PITA! Yeah. @charlynshelton-socialmediainterpreter

  • @deairby @charlynshelton-socialmediainterpreter I agree raising  your fees/pricing is a solution for some however, for others it is perhaps not viable. For some service providers the demand for their services is weak forcing to slash pricing to stay competitive. Which opens the doors to bad customers/clients.

    It is a catch 22 situation however, by providing your prospects with client worksheets. These information sheets are designed to capture as much information as possible, determine their level of expertise, client participation. 

    From this you can judge whether you want to take them on or to pass them off to someone else who might thank you for the referral. 

  • thanks, Paul, good words @ptwylie

  • I am about to fire a client today – she pays me the least and causes me the most headaches.  Because time are tight I thought I needed them for the regular income; but a good conversation with my coaching group and the influx of people interested in my services convinced me that I needed the 4 hours a week for more viable clients. Thanks  to everyone for all the good advice.

  • @deairby “firing” sub-opitmal customers or walking away from one before you start is emotionally difficult, especially for a small business. We are conditioned to view success in monetary terms to gross revenue, and not in the aggregate of the overall costs which inlcude acquisition costs and the human toll.

    By human toll I mean the energy sapping that exhausts you, and sucks the joy from someting you love. It also includes the job dissatisfaction for your valued employees. Who wants to get pounded on a daily basis? 

    I think the best time is to recognize a bad fit ahead of time and move on, but often that is not easy. But with an existing client, when you realize you’re bleeding money, time and energy it’s time to extricate yourself.

    “How” is tricky and depends on the type of business. In cases where it’s appropriate, such as professional services, a meeting with the client to honestly discuss mutual dissatisfaction can help preserve your reputation (not always).

    So we are back to an “ideal” client and understanding their profitability.

    What I found interesting is that some larger companies don’t understand this, either despite their seemingly larger resouces to analyze data, while a lot of small businesses also rely heavily on anecdotal information. This article in INC. magazine discusses understanding customer value, particularly in the longer term, and how you need to weed out those to not chase.  http://www.inc.com/karl-and-bill/dont-grow-your-business-with-bad-customers.html?utm_source=twitter&utm_medium=socialmedia&utm_campaign=button

  • Great input, thanks Barbara and Joan-exceptionally wise, as usual! @barbaralemairephd @joanmuschampfagnani

  • @deairby

    There are few BETTER feelings than firing PITA clients. It immediately makes you feel better and boosts employee morale, letting them know that abusive customers are not welcome.

    I recently fired a client who had brought a number of clients to us, but she would literally belittle our staff and myself on a regular basis.

    Drained the joy right out of the work.

    Life’s too short for bad customers.

    That being said, remember there are two sides to every story. I have often asked a client about their perspective and discovered that they are at least partially right in a dispute/disagreement.

    While we should never let customers walk all over us, we should also strive to understand where they’re coming from. However, if they’re just abusive, or don’t value the work we do, then kick them to the curb.

  • A big part of the how, for most service providers, is to have a clear fee agreement that spells out what will happen if you need to fire a client — and what will happen if a client wants to fire you.

    I agree life’s too short for bad clients/customers.

    The clearer we are on who our ideal client is the more of those we’ll be working with. Raising rates is also viable — or having rates that are competitive. Rates that are really low seem to attract the “K Mart shoppers.”

    @rich-brooks @deairby @joanmuschampfagnani @barbaralemairephd @ptwylie @charlynshelton-socialmediainterpreter

  • As @stefaniefrank mentioned, getting a SIGNED agreement for services (including the statement that a client is paying for my expertise as well as a portion of my time) can be huge in discouraging bad prospects and defending yourself against overly demanding clients.

  • Hi all so I gave my notice to the client and offered to train my replacement.I live in a city that acts like a small town so you just don’t burn bridges. Every one was satisfied at the end of the meeting and I will soon be free of a huge drain on my time.

    @stefaniefrank @debbielynnava I am adding that to my contract.

  • Barbara that’s fabulous — so glad it went well — and good for you for doing it!

    @barbaralemairephd

  • Congratulations @barbaralemairephd

    @stefaniefrank is right, a clear fee agreement that establishes the terms of the relationship is a must. Expectations and deliverables should also be clearly defined to minimize ambiguity and reasons for friction.

    I’ve been in contract with agencies where the “not so great” client was rough and higher costs were not an issue so the client remained on-board for too long.  @rich-brooks morale was in fact at an all time low leading to the loss of a great employee as a result.

    @joanmuschampfagnani great advise on “how” to deal with these types of clients. It is a delicate situation but all effort to handle it as graceful as possible can make a huge difference on a company’s reputation. 

    IMO, how to fire? Meet to discuss perspectives, expectations (might need to step back to regroup, especially if you find out that both parties have not been in alignment); otherwise, discuss reality, its effects and possibly the need for higher fees as consequences…

    Why? If there isn’t a win-win, it is in everybody’s best interest to move on.

    When? When you have tried everything within reason to build a successful relationship and it doesn’t make sense to continue on. 

    Ideal client defined? I think this would require clients to always see things your way; ideal but not realistic.

    My story?…PITA charges are definitely in place and applied when they need to be. 

  • @deairby i would rather develop relationship with my competitors, get closer with them and then gradually ask them to get my PITA customer. On my side, i’d say to PITA customer that i am sorry, i can’t serve you due to whatsoever reasons, but i have one good friend (actually competitor!) who can serve you! This way i can transfer this PITA customer to competitor-cum-friend!! However i have never come across such situation, this is just my imagination. 

  • @barbaralemairephd Isn’t it true that the ones who pay you the least cause the most problems? 

    I recently was struggling with a client that wanted the world for a very small amount of money. I had agreed to give her a low price when we first contracted because she promised to send me referrals from the business owners she came into contact with each day. 

    Several months later, I hadn’t seen one referral and she had been late on every payment. Not only that, but she felt that I was “on-call” for all her social media needs on holidays, weekends and I received phone calls and emails from her almost daily. 

    Finally, I told her that I couldn’t continue working with her for that price and that if she needed that much support, she would have to pay me 3x her current payment. I didn’t want to end the relationship on a sour note, so I made sure to give her an “out” and let her know that I understand if she can’t afford it and wants to manage the tasks on her own. 

    Finally, I was able to get rid of the work and it was such a relief!

  • My worst clients are agencies. I stopped working for them last year. They were demanding in quality and time — lots of after hours work — collecting the fees and paying their vendors when and if they felt like it. Since they had the direct access to the client, they were always ready to pass the blame for any failing on to their vendors. When they started telling me what they should pay, that was the end. I rarely have trouble with clients I work with directly. But good riddance to agencies!

  • i dont  do service  and  im out here in the face to face world….but    i have  bad ones too.. but if they  really  can afford me and  want my stuff  i can usually  solve it  by   having  strict rules about what i will do and  not  being pushed around….  i can say no in a nice way and  get them to accept my   llimits…. i dont  blame them  for  wanting  way more than i  want to give.special orders, delivery,lay away,   little  changes etc etc…….but its my  way  or the highway, with a smile i hope …

    some  of the worst ones are  ones with  loud  grabby kids  who  dont  respect my stuff…hate that!!! one i had to  really   gripe at and they still spent over  1k  that  day..

    so i  try hard  to save  the hard ones,,, ..but i dont have a limit  to how many  customers i  can sell to in a  given time…. like  most of you  do…

  • @deairby - If you keep customers that consistently know how to give you hell each time you interact with them, you should slap yourself for still doing business with them. No customer is worth the headache to make a miserable customer happy. They never will be happy. 

    People will take advantage of you and if you allow them to get away with bad behavior the first time, it will only get worse each time after. You have to set boundaries that shouldn’t be crossed in the beginning and if the customer continually makes doing business with them hell, it’s time to cut the baby bottle and move on.

  • In these kinds of situations I try to consider whether what the client wants is simply inconvenient for me or entirely unreasonable of them.  If it’s the latter we follow the approach so aptly described by @rich-brooks – cut ‘em loose as quickly as possible.  Don’t get me wrong – we really like clients who challenge our creativity.  That may be inconvenient at times but it usually winds up being fun and they generally aren’t the PITAs.

  • What an awesome discussion here, thanks all.

  • It is imperative to know where the breaking point is. Some clients have unreal expectations and think that because they hire you, you are an employee and not an independent contractor. It is our job to provide the best results for the client, it is ultimately up to you (the contractor) to make sure that they and your other clients are provided the best solution. If you feel that dealing with one individual is getting to the point that your sacrificing results for other clients it is time to cut ties. A simple explanation of expectations versus reality and then provide a solution. Either increase in pay or moving towards the exit door. I think it is important that if the exit door is taken it is taken in a tactful way of course where no one is left with a poor experience. 

  • thanks for your comments, Ry @ryrussell

  • @debbielynnava @stefaniefrank Ladies – I am a consultant who is interested in the wording you use in your agreements with your clients. I am based in Australia and not in the social media business myself. I am a consultant psychologist who works with organisations to assist them with recruiting, assessment and also training and coaching. I would love to look at a copy of what you put in your agreement with clients. My own agreements are usually pretty casual and I think this is an area I need to tighten up.  If you like, you can send it to my email address:ibby@allyoucanbepsychology.com.

    Of course, if it is something you would prefer not to share then I completely understand. 

    Thanks Oh and sorry @deairby as this is a bit off topic!

  • @libbythompson Is it really ibby@allyoucanbepsychology.com or should I preface that with an L?

  • Sill me Debbie! @debbielynnava
    no it is actually libby@allyoucanbepsychology.com. Duh. Maybe I should put the L on my forehead!!

    I have been running critical incident debriefings following a tragic and horrific motorcycle accident last week and clearly I need some rest!

    Cheers and thanks for accepting the friend request. ;-)

  • @libbythompson I’m sorry you’re having to deal with the aftermath of a tragedy. I sent you an e-mail–I hope it helps.

  • I hate not being treated like a customer, if I let you know how I feel, in some what unpleaseant terms don’t worry about firing me, I quit! and, will take myself and my money to a business that would be happy to have me and knows how to give service with a smile. I hate not being treated like a customer, so many businesses have gotten away from customer service, which is why people like me should get the irreate customer of the year award.

  • @minnieturner  i  think there is a  big   customer  service problem out there too….  and  anyone  going into  business   who  can  do what they say and  maybe alittle more   will be  ahead  …imho…

    is it  buyer beware or   beware of  buyer..

  • Clients require a decent amount of maintenance regardless – so why put up with a cheapskate who fancies themselves as King/Queen vs. someone who pays you what you’re worth and gives you the proper respect? I look for those who are close to a partner as possible. And that IS possible.

  • @danonbranding I think paying you for what your worth is a big part of  having the respect factor between any client/supplier relationship. How can one expect to have the same customer service paying the least.

    From my experience it is always the ones that can ill-afford my services that cause the most problems. In @phil_lauterjung  [blog post] 5 Steps to Identify Your Ideal Customer  to help not having a bad customer experience you need to first identify who is your ideal client.

     Here is the 5 steps:

    1. Define Your Customers
    2. Locate Them
    3. Understand Their Buying Process
    4. Sketch a Buyer Profile
    5. Talk to Existing Customers
    Spend the time now before you have a bad experience. Or, at least you’ll have a safe guard in place to diminish the bad customers.

  • @deairby I think it’s essential and important to fire bad customers.
    Small businesses don’t have enough resources so spend on the excess workload generated by bad customers. Also bad customers are bringing bad atmosphere to the organization. What I did is just to be stringent on the demands from this customer and not to negotiate at all. All this while trying to be very polite. If I couldn’t be polite with this customer I would hand him over to another employee so we actually played the “bad” guy and “good” guy. 

    @richbrooks @deairby @joanmuschampfagnani@barbaralemairephd @ptwylie @charlynshelton-socialmediainterpreter

  • i think a lot of this problem is   not  being able to  define  your  limits and  rules  in a clear way  at the start  and  and then  to be in  control and  to   stick to them. ..

    sounds like  the problems  are the  customers  expecting a lot more than  what you  think you are agreeing   on…being   friendly and firm  right  from the start  might  help…

    im  facing this problem  too and  working on   saying no in a  stronger  way and  being  clearer  about what  we   will do  …and  still keeping   the  customer…we  dont  do  so much   that they  want…. but its our choice…here they know we have  carpenntry skills and want  all kinds of  custome w ork that   we  do not  have any interest in doing…

    i dont  think many businesses i  know  would  sign a  6 month    contract with an  unknown   business…there are  a lot of   unhappy   recievers of  web  work out there..and   tons of  competition….

  • Thanks Ann  @annfurnivall

  • Thanks so much for your support and advice @debbielynnava

    I really appreciate your help.

  • You’re welcome @libbythompson. May you and your clients always be a good fit for each other. 


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