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Managing The Client From Hell

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Running Time: 9.50

Date: 01/10/2011

Do you have "customers from hell"? You'd be better off passing them on to your competitors.

The days when every customer was king, and their every demand had to be met are over, says John Petty, who'sbeensuccessfully involved with Customer Profitability Analysisfor 15 years. Now it's important to understand which customers are making you money and which are costing you. A "bad" customer may be one who orders small quantities, frequently changes their mind, makes incessant calls about service andis a slow payer. There's a cost associated with all those things: you'll be better off without them.

John says a common strategic mistake is to try to do everything a customer wants. Your business will benefit if you identify what you WON'T do, and concentrate on providing superior service to those who are prepared to pay for it without making costly demands.

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Topics: Customer Service