Whoa, steady on, I’m out there looking for new customers too. But while customer acquisition may be an important focus for many, it is crucial to know when enough is enough. Some customers are just not going to be right for you. They might take more time than their share, or you might never be able to satisfy them because their business requirements or attitudes don’t suit, or perhaps your products or capability don’t yet.
The critical factor is knowing how to tell, early. Pressing your point to someone who isn’t listening will cost you time and/or reputation. It takes real courage to tell a customer you can’t help them now. Be nice, they might suit you later.
Here’s some guidelines to help you identify a bad customer fit.
Do they:
- Ask too many questions – Be careful here, sometimes the questions are a necessary part of their sales journey, and they will spring into action once you satisfy them. But some people are time wasters and higher maintenance than your process can ever make money from.
- Need too much education – Maybe they just need someone else to educate them first so a referral to a trusted partner that works on some initial steps and then hands you back when they are ready suits.
- Pay on time – If your industry is volume based then your margins are low and acting as their bank might be costing you money. However, be mindful of their future needs as it might be worth investing in them.
- Boast about how they won a battle – Some people are more competitive than collaborative. Leave something for the other guy. Research confirms when there are 2 winners, business is more sustainable and enjoyable. Think about that, which are you?
- Make your staff complain – There is a cost to employ someone. If staff are complaining look into this and is the customer more important than employee satisfaction? It’s a balance.
- Constantly change the scope once started – A consistent creep here and there. Is it costing you money?
- Take too long to respond – For the service industry the longer the job stays in your system the more it costs you. Also, keeping this in your head is compromising other opportunity.
- Complain about your costs – Sometimes suggesting a competitor you know is more expensive might be a good idea.
Keep these as guidelines because sometimes it is worth investing. Therefore, to get this right you really need to have your ears peeled for their future plans. It takes courage to say ‘No’ to a customer, and often the good ones will respect you for it. Watch for their reaction here too.
Chris Norris – Truth Seeker Cert. MKTG | MCC | Cert. Typography
Former Chairman of Business Whangaparaoa and Board Member for Silverdale Business. He is also a mentor with the Business Mentors Programme at MBIE. Now running a locally focussed branding business. Allbrand.co.nz – Revealing the truth in businesses. If you are passionate about something you already have a true story. Get in touch to seek it: Chris@allbrand.co.nz
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