A Collection of Web Pages About Unprofitable Customers
Your Unprofitable Customers Are Killing You
How many of your clients are unprofitable? My guess is you have no idea.
If your business overall is profitable, you’re not worrying too much about the unprofitable ones.
And you should. We have a client that is a family business with 1,100 total customers. This client was shocked to find out that 350 of their customers were unprofitable…More at http://forbes.com
Getting rid of unprofitable customers? Not a bad idea
Michael Haenlein was showing a letter sent by a UK-based company to one of its clients.
This letter respectfully asked the addressee to look for another provider because he/she could not be served satisfactorily (read between the lines… he/she was consuming too much of the company’s precious time…More at http://intotheminds.com
Why Firing Your Worst Customers Isn’t Such a Great Idea – Knowledge@Wharton
Why not jettison them and focus your customer-relationship efforts on more profitable individuals?
Or, as an alternative, why not at least try to increase the worth of the low-value customers to your firm?
If a firm has only valuable customers, the thinking goes, its profitability and shareholder value should increase…More at http://knowledge.wharton.upenn.edu
The Customer Profitability Conundrum: When to Love ‘Em or Leave ‘Em
The customer may always be right, according to the old adage.
But here is a not-so-old adage that is just as true: The customer may not always be profitable.
That’s why more companies are starting to take a harder look to determine which customers are worth serving and which should take their business elsewhere…More at http://strategy-business.com
How To Ditch Your “Problem Customers”
I’ve learned an important lesson over the years. There are times to sharpen your pencil to get customers.
And there are also times to kill off your existing customers–with a blunt pencil.
In other words, price them out the door. Raise your fees to the point where they’re compelled to take their business elsewhere….More at http://fastcompany.com
How to Fire Bad Customers: 4 Steps | Inc.com
I just don’t want to do business with you is bound to lead to a lengthy and unpleasant conversation (I’ve learned that the hard way).
I’ve decided to pursue other opportunities is better, but may still result in uncomfortable questions and hurt feelings.
Through trial and error I’ve learned that there’s one simple and foolproof way to get rid of a bad customer without taking on emotional baggage:
Raise your price to more than the customer will pay. Here’s how to do it gracefully…More at http://inc.com
3 Painless Scripts to Free Yourself of Problem Clients
Letting go of your first “problem client” can be an emotionally charged experience, but honestly it’s one of the most important milestones in your businesses.
It’s important because with each problem client, you’re able to get clearer on what your “deal breakers” are and which customers are your ideal customers…More at http://nicholasreese.com
How To Manage Get Unprofitable Customers
The Right Way to Manage Unprofitable Customers
Don’t just dump customers that cost you money. Use this framework to decide how best to fix or end the relationships.
Problem customers can cost your business lots of money, but quickly ejecting them may not be the best way to relieve the burden…More at http://hbr.org
How to manage unprofitable customers in 3 steps
The best way to avoid unprofitable customers is to actually not take them onboard. That’s where a good market research study helps.
As part of your market research you will have to identify the different market segments (in other words categorize customers according for instance to their needs) and assess the profitability to serve each of them…More at http://intotheminds.com
What’s the best way to manage unprofitable customers?
Learn tips for turning unprofitable customers into profitable customers in this tip. Find out who in the organization should manage unprofitable customers.
For example, if we were to measure the value of our customers only based on what they’re spending with us this quarter, then that will make us more interested only in people who are current spenders and current big spenders…More at http://searchcrm.techtarget.com
The Right Way to Manage Unprofitable Customers – CBS News
The Idea in Brief
Some of your customers aren’t paying their bills. Others are so high-maintenance that the cost of serving them is eroding your profits.
What to do? For many companies, the answer is simple: Show them the door.
Divesting difficult customers has its advantages, but…More at http://cbsnews.com
3 ways to manage unprofitable clients – Replicon
We discuss a few strategies for managing professional services clients that seem more costly than they’re worth, before you decide to kick them to the curb.
With the ever-increasing cost of acquiring new clients, we all know and recognize the incredible importance of customer retention, especially in the professional services space…More at http://replicon.com