Building a Better Business

    Service: Customers - Saying Goodbye

    by David Lewis

    Though the whole goal in business is to get, then retain customers, it’s inevitable that you will also get ones that you don’t want. Why would you not want a customer? Because they can be more trouble than  they’re worth — they can take a lot of time and generate almost no revenue.

    It’s always tough to get rid of a customer without tarnishing your good business name. There’s an old saying that goes, “If you please one customer, they’ll tell a friend. If you displease one, they’ll tell 10  friends.”

    Since some people can be a drain on your company, it's important to be able to learn how to gracefully let them go. This gives you more time to focus on your good customers. Not just to get a dollar out of them,  but to use them to spread the good news about your business.

    So, what sort of customer don’t you want? Here are a few of my notable ones:

    The time waster

      You know the kind. They come into your business, ask you lots of questions, kick the tires of your product, but never, ever buy. When I used to manage a bicycle store, we had this type weekly. They read all  the trade magazines, knew all the specs of every bike and used to like to come in and “comparison shop.” It usually took a few visits before we realized what the game was. The solutions to these types of  folks — don’t brush them off, but just spend less time with them. Say your hello’s, but be brief. If it’s quiet in the store, spend a bit of time with them if you have nothing pressing, but once another  customer comes in, nicely excuse yourself.

    The nickel and dimer

      Hey, everyone wants a deal, right? But, you still have to make your margin and turn a bit of a profit so you can stay in business. I recall one customer who was just about to buy a $300 bike. Very low margin.  He wanted all his accessories, which is where the best mark-up was, free. I told him I would throw in one thing, a water bottle holder. Wasn’t enough, he wanted it all. So, I went to talk to the owner about  what to do with this customer. We agreed. We let him walk. I returned and said that was the best we could do, and that aside from a great bike, our service was top notch. Well, he ranted that I didn’t care  about the sale and he would go elsewhere. I thanked him for his time and wished him luck. Sometimes you can’t win. But you have to listen to your gut.

    But I just bought it two weeks ago, and now it’s on sale

      We’ve all been caught on this one, either in the store or personally. I know I bought a car recently only to find a few weeks later that the sweet interest rate I received is now sweeter. Oh well, them’s the  breaks. But some customers don’t think so.

      In dealing with those who don’t feel that a sale is a sale, you have two ways to go. I always found that thinking about the customer was the best way to start. Are they new customers or long-time ones? Are  they screaming at you or are they pleading a good case? (If I have someone talk to me calmly and rationally, I am much more likely to go the extra mile, but if a person is screaming, the door is closed and  locked and I’d rather let him or her walk).

    The final decision is up to you. And of course, a lot depends on the item. Are you willing to lose a good or potential customer (especially one who could become a repeat customer) over a few dollars? Probably  not. But if we are talking lots of money … well … it’s time to sit back and think for a moment … something much easier done online than in a store.

    Figuring out where to draw the line is the tough part. But that come with experience.

    About the Author

    David Lewis - HeadshotDavid Lewis owns and operates an 18 year-old electronic publishing company, taybridge.communications that provides a broad range of online services.

  • Prior to starting his own business, David did several tours in the private sector - selling everything from e-learning to guns. Yes, guns. For the past several years, David has been in the public sector. 
     
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