Three Customers You Shouldn't Serve, Part 2

This post is the second in a three part series on customers you shouldn't serve.

Last week, I shared three types of customers you should avoid.  This week, I have a few suggestions on how to work with these customers should you inevitably encounter one. (Do nothing at your own risk -- these customers all have the potential to hurt your business!)

1. They want what you can't deliver well

Customers often ask us to provide products or services that are outside our "sweet spot". It may be tempting to try our best to give them what they want, but this can be a recipe for future failure. Instead, consider a few alternatives:

• Re-frame the customer's request to see if you have something you can offer that will meet their needs.
• Refer your customer to someone who can do the job and do it well.
• Provide your customer with resources that will allow them to find a solution.

2. You can't serve them profitably

Unless you are running a charity, you need to make a profit to stay in business. Here are a few suggestions to make customers more profitable:

• Fix problems. If your service is poor or you've subjected your customer to problems, you should fix those first. Getting it right the first time is almost always cheaper in the long run.
• Hold late-payers accountable. Customers that habitually pay late (or cause other damages) should held accountable through late fees or a discontinuation of service until their account is current.
• Renegotiate. Consider renegotiating your price or terms of service if your margins are too thin.

3. They are abusive

Politely, but firmly let your customer know that abuse will not be tolerated. The revenue you receive from an abusive customer is rarely worth the stress it causes employees and the high cost of servicing these customers.

Three Customers You Shouldn't Serve

This is the first post in a three-part series on customers you shouldn't serve.

The customer is always right and we certainly aim to please by going the extra mile and never, ever saying the word "No" if we can possibly help it.

Of course, you may be doing more harm than good if you don't identify the Three Customers You Shouldn't Serve. Yes, dear reader, I'm recommending you don't do business with these folks if you can help it. *GASP*

1. They want what you can't deliver well.

You wouldn't call a pizza place to buy a couch, go to a dentist for an oil change, or send your aqua-phobic dog to the dry cleaners for a bath would you? Of course not, but some customers want us to deliver far more than we ought to.

I recently had to replace the fabric on a lounge chair. I called Saddleback, the store that sold it to me, and they referred me to Tyler Uselman, an independent contractor. They knew they weren't experts at patio furniture repair, but Tyler was.  He came out to my house, did a great job on the repair, and I'm now very happy with both Tyler and Saddleback. By the way, Tyler's a whiz and charges very fair prices, so email him if your patio furniture needs sprucing up.

2. You can't serve them profitably.

Any smart business will take on a few expenses in the interest of customer goodwill, but you still need to make money on customers over the long run. It's best to end the relationship if your margins are so thin or your service costs are so high that you'll never make a profit.

I once had a client who often caused delays, additional expenses, and required additional time to complete projects for them. Since I was paid a flat rate per project, these unanticipated items made the work unprofitable over the long run. To top if off, the client typically paid late, so I usually had to spend more time chasing down their accounts payable department. I executed my duties to the best of my abilities, but we gracefully parted ways once our contract was up.

3. They are abusive.

There are certainly situations where customers have a right to be angry, but there's never an excuse for a customer to verbally abuse one of your employees. Curse words, insults, and threats have no place in customer service, even if they are coming from the customer.

Sadly, business owners and managers can be tempted to let a profitable customer get away with a little employee abuse. This short-sighted approach can lead to poor productivity, employee turnover, or worse yet, an employee lawsuit.

Stay tuned...

Next week, we'll discuss strategies for artfully handling these types of customers. In the meantime, I welcome your comments and suggestions for other types of customers we should avoid.

The 5 things supervisors do to get great results

I've worked with a lot of supervisors over the past 15 years. While I know I haven't seen it all (who has?), I've seen a lot of good, bad, and even great leadership. Preparing for next week's Getting Started as a Supervisor workshop gave me an opportunity to reflect on the traits that made the great supervisors great. Here's my list. I'd be happy to see what you'd add (or subtract) from the list!

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Do you receive more good, bad, or outstanding service?

A colleague of mine, John Curran, recently asked an interesting question. Do I receive more good, bad, or outstanding service? (Ok, John asks lots of interesting questions - follow him on Twitter and you'll see.)

So, I thought I'd answer the question on my blog but also invite your comments too. 

#1: I receive Good Service most often.
I define "good service" as service that meets the customer's expectations. Most of the time, I receive good service. Of course, that quite literally is nothing to write about. I write a lot of blog posts about bad service and a few about outstanding service, but nothing about good service. Why? Because it is literally forgettable.

We're programmed to notice exceptions.  We seek pleasure and run from danger, but noting every mediocre moment of the day would result in sensory overload. 

#2: I receive Bad Service less often than good, but more often than outstanding.
I define "bad service" as service that falls short of the customer's expectations. While I don't view myself as being particularly sensitive to poor customer service, I do have a blog to fill and customer service workshops to train, so I pay attention. Bad service does happen quite a bit more than I think it should.

Why? Too many reasons to list here, but I differ from many people on my #1 root cause. Most people I know blame the employee delivering the service. I tend to blame their supervisor first, because the supervisor hired the person, trained the person, and oversees that person's work. Sure, the employee is responsible too, but I've seen too many employees turn their performance around under the right leadership to think that most people can't do better. (That's why leadership development help is something my clients ask for so frequently.)

#3: I receive Outstanding Service least frequently.
I define "outstanding service" as service that exceeds the customer's expectations. This doesn't happen too often, but when it does, yahoo! Free publicity in my blog to anyone (or any company) that provides me with Outstanding Service!

Solutions: What would you do?

Last week, I posted a performance improvement scenario and asked "What would you do?" Here's the follow-up post re-capping the responses and revealing what actually happened. Thanks to everyone who submitted a solution!

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