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How to deal with nightmare customers
1.
SPECIAL
How To Deal With “Nightmare” Customers ACTION And “High Maintenance” Customers REPORT One of my very strong suggestions in the May 2001 issue of Positive Business A complimentary report Newsletter was to identify your “nightmare customers” and your “high provided by an maintenance” customers. independent BBG… For the record, a nightmare customer is one who is never happy. No matter Business Development Specialist how hard you try you cannot meet their unreasonable expectations. They demand top priority, take up heaps of your time, complain about the job (or Our purpose: product) and the price. Then, they pay you late! This individual will mentally drain you and reduce your self-confidence. To provide practical business information Now meet the “high maintenance – low profit” customer. that works… Guaranteed! This individual messes about, wastes your time and has a great propensity of In particular how to: turning a simple job into a complex one. Believe me, there is very little profit margin left when you complete the job. You’ve got a few H-M’s on your Increase Sales Reduce Costs books, haven’t you? Improve Productivity And while you tend to the nightmares and the H-M’s, two groups of profitable Better Business customers are being starved of your attention. Group Ltd Serving Australian and Enter the Silent Apostles (SA’s)…they just love you and are waiting patiently New Zealand Business. in line for you to give them some affection and in return they’ll give you Sales, Profits and Cash!. BBG Australia Suite 7, Royal Arcade Enter the Pure Profits (PP’s)…they are wanting to do business with you, but Cnr Barolin & Bourbong they won’t wait around too long. St, Bundaberg, Qld 4670 Phone+61 412 667 559 Fax +617 3036 6174 Action Time Email: bbgau@betterbusinessgroup.biz Right now is an ideal time to identify the “nightmare” and the “high BBG New Zealand maintenance” customers…for these dastardly critters are chewing into the heart and soul of your profitability. You can do so by using our two 1329 Akatarawa Road Upper Hutt 5372. worksheets: New Zealand Phone: +64 4 5266880 Identifying The Nightmare Customers Worksheet and Fax: +64 4 5264024 Identifying The High Maintenance Customers Worksheet. Email: bbgnz@betterbusinessgroup.biz Presented By: When you’ve got the worksheets, grab your customer database lists and then start identifying them. A great exercise to get the input of your key staff as well. Page 1 of 5 Copyright © Fred Steensma
2.
How To Deal
With “Nightmare” Customers And “High Maintenance” Customers So what are you going to do after you have identified them? You know don’t you? Either convert them into Silent Apostles or Pure Profits and whether this is possible is a judgement call only you can make. Alternatively, and this takes guts because nobody likes turning business away, show them the door to your competitors. But remember, if you are not making a sufficient profit from the customer they are just using your valuable resources…and your resources, including your time, are limited. So, how do you tell them to take a hike? Well, I favour a letter because it’s official and it has a physical presence. Want a sample of such a letter? Well here it is…simply adapt it to suit your circumstances. Page 2 of 5 Better Business Group Ltd Copyright © Fred Steensma Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 - +61 412-667 559– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
3.
How To Deal
With “Nightmare” Customers And “High Maintenance” Customers High Maintenance Customers Company:__________________________________________________________________ Prepared By:___________________________________________ Date:_______________________ Decision Customers Name A or B Action To Be Taken When Definition of a “High Maintenance” Customer Possible Actions Wastes your time and has a great propensity of turning a (A) Attempt to convert into profitable customers simple job into a complex one. Believe me, there is (B) Politely show them the door to your competitors very little profit margin left when you complete the job. You’ve got a few H-M’s on your books, haven’t you? Page 3 of 5 Better Business Group Ltd Copyright © Fred Steensma Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 - +61 412-667 559– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
4.
How To Deal
With “Nightmare” Customers And “High Maintenance” Customers High Nightmare Customers Company:__________________________________________________________________ Prepared By:___________________________________________ Date:_______________________ Decision Customers Name A or B Action To Be Taken When Definition of a “High Nightmare” Customer Possible Actions A nightmare customer is one who is never happy. No (A) Attempt to convert into profitable customers matter how hard you try you cannot meet their (B) Politely show them the door to your competitors unreasonable expectations. They demand top priority, take up heaps of your time, complain about the job (or product) and the price. Then, they pay you late! This individual will mentally drain you and reduce your self-confidence. Page 4 of 5 Better Business Group Ltd Copyright © Fred Steensma Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 - +61 412-667 559– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
5.
How To Deal
With “Nightmare” Customers And “High Maintenance” Customers A Letter To Politely Advise “Nightmare” Or “High-Maintenance” Customers To Go Elsewhere Dear <Salutation> A Profound Thank You For Your Past Business And Our Genuine Regards For Your Success In The Future Every now and again we take the time to evaluate all of our customers needs, wants and expectations against the resources which we have available. You see <salutation>, we are firm believers that as a business, we can’t be all things to all people, we simply don’t have the necessary resources. Thus we have decided to concentrate on providing an excellent service within the parameters of our resource base. In reviewing our association we have come to the conclusion that we are unable to meet your expectations without a significant increase in price. And we are more than happy to discuss this as an option. Should you decide to find an alternative supplier we will understand and respect your decision. Moreover we are available to make a recommendation for you and make the transfer as smooth as possible. Whatever the outcome, we want you to know that we sincerely thank you for your past custom and we wish you all the very best for the future. I shall contact you personally within the next few days to discuss this matter with you. Page 5 of 5 Better Business Group Ltd Copyright © Fred Steensma Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 - +61 412-667 559– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
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