Bad Customers—Who Needs ‘Em?

by VentureBeat

Every company wants customers, right? But what do you do when the cost of customer management exceeds value?

Get rid of ‘em!

Clate Mask has a list of 3 ways to avoid costly customers over at VentureBeat.

First you need to be totally clear on who your target audience is—there’s a chance these complaining and demanding customers, who could be eroding employee morale, don’t belong to the market segment you truly want.

Here’s how you know if a customer is worth renewal management—or if they should be ditched altogether:

  • Demanding but not loud or abusive to customer service: Renegotiate.
  • Demanding and loud, but still not abusive: Renegotiate and Listen.
  • Loud but neither demanding nor abusive: Listen
  • Abusive: Terminate immediately.

If the customer still won’t renegotiate in the above cases, go ahead and terminate.

To learn about putting metrics in place to measure the cost of a customer, check out the full story.