No matter the state of your industry or the economy, there’s a simple question managers and business owners must consider: What can you do when you’ve already provided the highest level of service to a customer who still insists on remaining dissatisfied?
A typical response from management is to try even harder, offering discounts, freebies, and a level of responsiveness most customers wouldn’t ever expect. This is in addition to the extra time and effort your employees must put into going above their usual level of service, all in pursuit of merely keeping the customer temporarily sated.
Sound familiar? it’s easy to see where the error lies in this sort of hypothetical situation. In practice, however, far too many companies overstep the line of reasonable customer service, often to the point of losing profit to keep customers. If you’re finding yourself spending too much time, money, and effort placating your worst customers, it’s time to fire them.
As with your employees, a parting of ways doesn’t have to be painful or dramatic, provided you initiate the process with respect. Here are a few of the key ways to fire your worst customers — while keeping your business and your employees stable and satisfied.
Take It Slow
Parting ways with a customer is a business decision. It’s important to avoid acting on emotion, particularly after a notably difficult incident involving the customer. Don’t make the decision to fire someone on a whim. Consider the issue objectively and discuss it with employees who work in close contact with said customer. Gaining some perspective and distance on the issue goes a long way in making the right decision.
Start with an internal meeting to create an actionable strategy by gathering information. Which employees and departments has the problem customer given the most difficulty? What are some potential ways to improve communication without breaking your budget or interfering with someone’s job duties? By giving some time between considering termination and actually following through, you’ll increase the chances of finding a potential alternative solution.
If the team is unable to find a path forward that includes the problem customer, don’t fret. You’ve still gained a great deal by keeping employees part of the process and making your decision clear to all involved. Now it’s time to break the decision to the customer the right way.
Clear, Straightforward Communication
Firing bad customers should never involve fighting fire with fire. Even when dealing with vitriol or unethical behavior, your staff must remain firm in their dedication to company values. This isn’t just sensible business ethics — how you fire a customer can affect your bottom line.
Negative feelings after a break in business relations can compel some unhappy former customers to seek revenge. This can be something as simple as a false negative review on your business, yet even one bad review is enough to make 4 out of 5 customers reconsider a purchasing decision, according to one survey. For all the benefits of social media for businesses, the potential of bad word-of-mouth to spread remains.
When you set up the final call or email to your soon-to-be former customer, go in with respect from the very first word. Do not put the blame on them in any explicit way. Instead, frame the parting of ways as a business decision. Note that the services you offer are not within the scope of what they expect, or that while you’ve done your best, you’ve simply been unable to meet their standards even after repeated attempts. Be polite and respectful, noting any positive experiences you’ve had, or simply by thanking them for having tried your business.
Though not always possible, it helps to end the conversation on a positive note. Canceling the final invoice or providing some other financial benefit could be a one-time expense that pays in dividends when the problem client leaves your business without any bad feelings. Similarly, offering them alternatives to your service for the future can expedite their switch to another provider. Just make sure to give the referral company’s leader a heads up, if they’re a friend or colleague of yours.
Moving Forward
Firing a client isn’t a sign of bad business strategy or subpar customer service. In fact, the more you do well, the higher the likelihood of attracting a problem client. They may hear about your astounding level of service from public reviews and gain a skewed notion of what good customer service looks like, or they may see the success of your business as a chance to get something for nothing. Whatever the reason, difficult customers are a reality, and one it’s best to deal with promptly rather than letting them drain the time and resources of your employees.
When you achieve a clean break with one customer, spend some time reflecting on what went well, and what could be improved in the future. Some companies maintain scripts to use for different bad customer archetypes; as your business grows, the value of having a standardized firing process increases as well.
For your employee mental health and for your bottom line, firing your most difficult customers can be a major step forward in improving the way your teams function. While it’s never an easy decision to make, taking the first step toward opening a dialogue can go more smoothly than you might imagine — provided you handle the conversation with respect and an eye toward what’s best for your business.
