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How To Identify The Wrong Customers And Fire Them Out Of Your Business
Ariane Alyerunga

Ariane Alyerunga

September 17, 2018

It is difficult to know when to let go of a client. Every customer is lucrative and having solid client base it what every business strives for. But every business should know which customers are worth keeping around and which to let go.

Ways to Identify the Wrong Customers

Have a thorough vetting process before you accept a client’s account. Looking into their history with other providers could be very beneficial to you and keep you from a lot of trouble ahead depending on what you find.

Make sure you research their values and see if they align with your business. If their mission statement, values, or goals conflict with what your company is trying to achieve, then you know that this relationship could potentially become problematic.

Knowing if their demands are out of the scope of your services. If a customer is looking for something that you do not specialize in, then it is best not to jeopardize the quality of your services and kindly decline.

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How to Know When its Time to Let a Customer Go

If a client is overly complaining about your business or services, it can become a problem. It is good to get customer feedback every once in a while, especially if that information is helpful. There comes a time when you need to decide if the relationship with the client should continue if they constantly have issues with your work.

If the client is dishonest, that is huge red flag to let a client go. It is normal for miscommunication to occur, but when guidelines have been clearly set and are intentionally crossed, the relationship needs to end.

When clients are disrespectful to your employees, for example, if they are making racist or sexist remarks, belittling them, or putting them at harm etc.

If your client is paying you late, you should let them go. Having a reliable customer base is key to any business. It becomes a liability to keep a customer if they are inconsistent with their payments.

It is a big issue if a client compromises your business standards. The quality of your services and your business standards should always come first. It is good to show a customer that you are flexible but if it starts to compromise your practices, it is time to let them go.

How to Let a Customer Go

First, inform them calmly and politely you would not be able to continue this working relationship anymore.

Then, perhaps explain what the issue was that caused this decision. If it is because their actions say that you don’t believe your company is the right fit to handle their needs and direct them towards another service they could use.

This is a good strategy because you are kindly letting them know that you can no longer work with them and also providing them with other solutions so you are not leaving them empty-handed.

Lastly, give them a list of steps you will take to make the transition as smooth as possible. This will leave them feeling less bitter about being let go.

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