Knowledgebase

Understanding the Cost of a Bad Customer Print

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Why some revenue is negative.

WHAT A BAD CUSTOMER COSTS

Support time far above average Management attention Team morale Delayed payment Reputational risk

WHY MORALE MATTERS COMMERCIALLY

Difficult customers cause staff to leave.

WHAT SIGNS APPEAR BEFORE THE SALE

Pressing repeatedly on price Unrealistic expectations Disrespect toward your time Refusing to put things in writing Speaking badly of previous suppliers

WHY THAT LAST ONE

You will be the next previous supplier.

WHAT TO DO ABOUT THESE SIGNS

Take them seriously.

WHAT TO CALCULATE

The actual cost of serving them.

HOW

Time spent, against revenue received.

WHAT TO DO ABOUT AN EXISTING BAD CUSTOMER

Address the behaviour once, directly.

WHAT TO SAY

What is not working, and what would need to change.

WHAT TO DO IF NOTHING CHANGES

End the relationship, properly.

HOW

Notice per the agreement, courteous, with help to transition.

WHY COURTEOUS

They will talk about you regardless.

WHAT TO AVOID

Enduring it indefinitely Ending it abruptly in frustration

WHAT TO REVIEW PERIODICALLY

Which customers consume disproportionate support.

WHAT THAT LIST USUALLY SHOWS

A small number accounting for most of the difficulty.


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