Why You Sometimes Have to Fire a Customer and Even a Virtual PBX Can't Save Them

There was once a businessman who believed that every customer was a good customer. The promised revenue from each customer was counted upon to meet payroll, cover all expenses and have a little profit at the end of the month. The only problem was this businessman was spending a considerable amount of his time working with one client who failed to pay his bills in a timely manner and managed to secure more in deliverables and attention than covered in his contract.

Ultimately, this client is costing the business too much money. Sure, he represents revenue, but at what cost? If the businessman cannot spend time on other, more profitable clients and on growing the business, the high-maintenance client is just too expensive to maintain.

Virtual PBX provider, Nextiva, recently published a blog on this very topic, highlighting when and how to fire a customer. It’s an interesting dance as many a business owner doesn’t feel as though firing a customer is an option. When keeping the customer means bigger losses for the company and a drain on employee morale, it’s time to get out the pink slip.

When is it appropriate to fire a customer? If he or she is blatantly disrespectful to an employee, it’s time to take action. Extreme price pushing is another good reason to fire a customer. It’s one thing to offer breaks now and again. It’s quite another when a customer pushes so hard for bottom barrel prices that any hope of a profit is eliminated. When a customer takes away the profit and starts costing money to maintain, it’s time to cut them loose.

The same can be said for the customer that breeds contempt among the team. If the customer is difficult to deal with to the point that his or her depression and unhappiness are spreading throughout the organization, it may be time to cut the cord. The “one bad apple” rule is true in the business environment.

Deciding to fire the customer and actually following through on that decision are two separate considerations. The decision may be made in the heat of the moment, but the actual separation needs to be done calmly and with respect. This is especially true if the customer is being let go due to disrespectful behaviors; a business owner should never sink to that level.

Surprisingly, some customers don’t completely understand the impact of their behavior as they have never been called out on it. When treated with respect, they may opt to change their behavior and continue to do business. If so, they may turn into the best customer. If not, it may be best to turn them over to the competition and move on to focus on the more profitable customers.

Whatever the outcome, the use of the virtual PBX in the process can streamline the methods used for communication. It can’t make the grumpy customer automatically happy, but it can keep the interaction crystal clear.

Edited by Jamie Epstein