Lose Your Bad Customers To Increase Your Profits

Let us face it

Let us face it. Not every one of your customers can be good clients. There would always be rotten apples in there. Unfortunately, the 80/20 rule also applies to business and profitability 20% of your clients would be good ones; but the rest of the 80% would be those that youd rather be without.

The 80% account for those who just waste your time, money and effort. And whatever you do even if you provide them outstanding marketing campaigns such as your poster printing you will never be right in their eyes. They would always be the ones to complain, haggle, ask for a huge discount, would never be satisfied, and will most often than not cost you more to serve than they spend anyway.

Luckily, you can lose them. Even if you believe in the saying that customers are always right and you cannot lose them no matter how difficult they are, you can send them packing. Bad customers waste your time, energy and money more than what they give you. And before you end up going bankrupt, you better start saying no to these people.

Okay. So the next question now is how do you lose them? First of all, you need to realize that the seemingly additional revenue is not always a good one when it comes to profitability. What do I mean by this? By keeping everyone in your database, you can end up paying more than what you actually get as returns. Often, the work generated to keep these customers happy is not only time consuming but resource consuming as well. You try to deliver the kind of service they are asking from you, which most often is impossible to do, and you spend your resources and profit making them satisfied to no end.

So now you have to shift your mindset to believe that the customer is not always right. You can say no to a customer, especially the bad ones.

The next step now is to identify them. Pick the rotten apples from the good ones. Identify why your best customers are the best. What makes them different from the rest of the pack? You can actually do this even before you can add them to your list. Before you market, decide on your criteria of a good customer. Every time you decide to promote to a target client with say, your poster printing, always consider if marketing to that particular prospect is worth the effort. You will be sure to determine right away who would be able to make your list.

Finally, decide on the criteria that would suit your business. You may consider that the small customers are more profitable than the big ones. Or the ones that you have for the longest time may also not be that profitable after all.

The bottom line is to cull your bad customers from the good ones. Once you have done that, then it would be time for you to really bring in the profits you deserve.

by: Janice Jenkins

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