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#BusinessChallenge – Week 5

Last week we discussed the important principle that not all customers were created equally. Rater controversial right?

This week we talk about what you should do after you have classified your customers according to the lists of last week. #BusinessChallenge Fire A Customer.

Well, to be honest, there isn’t much to discuss. Cut the bottom 3 customers according to each classification. As easy as that. See you guys next week!

Jokes aside. The bottom 3 customers in each classification are there for a reason. Either they complain constantly, or they are not profitable or they want stuff for free without wanting to pay. Do you really want a customer like that? I don’t.

Let’s think about the logic around this process

Imagine the extra time you would have available in a day if you didn’t have to serve your WORST customers. What would you do with that extra time?

Spend all your time on your top 3 clients every month, increasing the service levels and the profits they generate?

Focus all this extra time on searching for and landing more clients like your top-performing clients?

Implement up-selling and cross-selling systems in your business to increase turnover?

Streamlining the service or product offering to your top clients to ensure that they do not find an alternative supplier?

Improving your product or service to ensure that they want to remain your customer?

You see, the possibilities of what you can do with your time are endless.

So, the challenge this week is…

The challenge for this week is to pick up the phone, call your worst customers and set up a meeting with them. In this meeting, you must relay the message that you are firing them as a customer.

The most important thing to remember about this meeting is that you should do it professionally, properly and with dignity.

NEVER EVER do it in an email or an SMS, or worse, in a badly typed WhatsApp. This is extremely unprofessional and just in bad taste.

NEVER EVER tell one of your staff members to do it either. This is YOUR job, not theirs. Besides, how do you expect to keep a sales representative motivated if you expect them to go and tell a customer, which they fought to get in the first place, that they do not want their business anymore?

You have to call a meeting, maybe even a lunch meeting, and explain your EXACT reasoning for not wanting to serve them anymore.

You can put your analysis you performed in front of them and show them that they are not contributing positively to your business.

Show them that it’s not profitable for you to serve them. They should understand that all businesses need to be profitable if they are worthy of being called an entrepreneur like you. If they are your customer in their individual capacity, explain to them that no business can operate any area of the operations at a loss.

Some constantly expect to be served for free or at a price point much less than what the other customers are willing to pay. Explain to them that you would much rather sell your product or service to these customers that are already buying at a higher price point.

And so you should explain while showing them the information, that they are not your ideal customer. You could even suggest an alternative supplier who might be willing to consider them a customer.

What is the most important part of firing a customer? When they leave the meeting, they should understand your reasons and accept your decision. If this is not the case, you did not convey the message properly.

So are you ready to execute this week’s #BusinessChallenge Fire A Customer?

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