Dear customer, you’re fired!
If all customers are not created equal why do we treat them that way?
Customers are not equal!
One of the biggest mistakes a business can get into is attracting and then keeping the wrong customers. Next, to add to the error, is to treat them all the same.
High maintenance, low profit customers do not suit most business models and suck the energy and profit from a business whilst stealing resources that would be better spent on the customers we really want.
This is where business planning comes in – a well developed business plan asks the important questions.
- Who are our ideal customers?
- What will they demand from us?
- Where do they hang out?
- What is the simplest and most direct method to connect with them?
- Can we create a marketing vehicle that will attract them and make them want to connect with us?
- Who don’t we want to do business with?
- Does our website and other marketing materials filter them out?
- If they do connect with us how do we direct them to out competitors?
- Do we have any customers that we should be firing today?
Yes, you can and should fire customers!
I have done it, a simple telephone call to let a customer know that in order for a business relationship to be a success both parties must feel there is a benefit and that I did not feel there was enough benefit to continue with the relationship.
Of course, we have all taken on customers to deal with short term business issues – like needing cash! Short-term decisions, however, rarely pay off even in the short-term and never in the long run.
The problem with this approach is that it ends up creating a culture of low profit, poor service and disgruntled employees.
Know who you are and price, market and deliver consistently with that market position.