5 Reasons to Dump a Customer

exitWe’ve all had at one time or another a customer we can’t stand.

Come on… let’s be blunt and quit kidding ourselves about trying to like everybody.  To be even more blunt, some customers just aren’t worth keeping!  Are you with me?  I have a feeling you’re saying, “Mark, you’re spot-on.”

Here are 5 reasons I think it makes sense to dump a customer:

1.  You can’t make money off of them and there is no strategic reason to keep them.

2.  The demands they place on your company are impacting the level of service you’re able to give to other customers.

3.  Ethically, they’re challenging you or someone else in your company.

4.  The price concessions you’ve had to make to get their business is killing your profit.

5.  The customer’s reputation is a risk to your reputation.

What I’ve experienced too many times is companies not being willing to bite the bullet and dump a customer, even though the customer is clearly doing one or more of the five things listed above. 

Management is naturally hetsitant to dump a customer due to the perception they’re going to lose business.  What they fail to take into consideration is how short-sighted this perspective is.

The reason it is short-sighted is because by caving to the the desire to not lose sales, they give up far more profitable business from other customers with whom they could be spending time.

Another reason I believe is even more important is the issue of employee satisfaction and productivity.

If employees and salespeople are getting sucked into having to spend too much time with problem customers, it’s only natural it’s going to take a toll on them.  Result is lower productivity and potentially increased turnover.

Go ahead, dump a customer.  First time you do it will feel weird, but after you do it, you’ll be amazed at how much better things are.

Want to know how to dump a customer?  Here on some suggestions on what to do when It’s Time to Fire Your Cheap Customers.

Copyright 2013, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.

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