Don't wait to get rid of that toxic customer—it's vital to the health of your business


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I am someone who either goes in or not at all, whether in business or in my personal life. I once had a close friend and former colleague who I bonded over our shared passion for entrepreneurship. At first our friendship was great, but over time it became one sided and toxic. My attempts to keep the friendship alive were often ignored or dismissed.

Eventually, I realized it was time to leave and move on. In my long career as an entrepreneur, I have noticed that similar dynamics play out in business relationships. Do business for a long time and you will face your share toxic customers and customers. What amazes me is how many entrepreneurs falter and procrastinate instead of taking immediate and decisive action.

In both personal and business situations, there is a powerful sense of freedom that comes from being able to say “no”. Whether you decide, “No, I have no place for this person in my life,” or “No, I don't want to do business with this client anymore,” the word “no” can be liberating.

For a growth-minded entrepreneur, the idea of ​​severing ties with a customer, even a difficult one, may seem counterintuitive. After all, shouldn't you be meeting their needs, keeping them happy and turning them into a rabid fan? However, in the long run, letting go of a toxic relationship may be the most strategic decision you can make for the health and growth of your business.

Related: It's not me, it's you: When to end a toxic client relationship

Why bad customers are bad for business

or bad customer it can do more than give you a hard time; they can also drain your business's resources and morale, both in the short and long term. You will undoubtedly feel your firm's energy draining and the opportunity cost slipping through your fingers as you meet strange and often increasing demands. Even if you hold back and end the business with the client on good terms, your employees may resent what you put them through. Furthermore, the time and energy that could have been spent serving other customers or working on other core aspects of the business is not worth pleasing an ultra-high-maintenance customer.

The following is from an actual chain of correspondence that circulated among my staff during a dispute with one such problematic client:

(This customer) … is upset that we won't personalize our marketing for them. He's spoken to (four members of our staff) and he's still not happy.

He has been extremely abusive since I started the conversation with him. He was the same as (two other staff members). The names he has used to describe our company and our sales team are (very offensive).

I don't think we should continue working with this person at all.

For me, this was not a difficult decision. As much as I trust my staff, I trust their consensus that this client is not someone we want to work with. I ended the relationship and accepted the consequences. In my experience, a negative review of your business is a small price to pay when the alternative is to risk the integrity of your business and the well-being of your team.

Related: Business Breakups – How to break free from toxic partnerships and clients

Make the most of a bad situation: Regroup and grow

Whenever your business encounters an obstacle, it is essential not to overlook any potential advantage. When you cut ties with a difficult client, take the opportunity to demonstrate to your team that you fully support them. Hear their reactions and acknowledge their hard work and the challenges they faced in handling this client.

Just as individuals reflect on what they really want in a partner after a romantic breakup, as a business owner, you should do the same after ending a troubled customer relationship. Use this moment to consider which types of customers best match your business goals.

This exercise is sometimes referred to as creating your “customer avatar.” Based on real data and market research, customer avatars helps you gain deeper insights into your target audience, enabling you to create more effective marketing strategies. Developing these avatars can be an engaging and collaborative exercise for your team.

When you stop chasing ghosts

Bad customers come in several forms. Contrasted with the needy, impatient and abusive variety is the customer who quietly lurks in the background, on radio silence. They may often miss deadlines or fail to provide the information or resources needed to move projects forward effectively.

First, it's important to give them the benefit of the doubt. Life happens and they may be dealing with unforeseen circumstances – perhaps they have an emergency or are overwhelmed with something unrelated to your project (like a sick pet or a family matter).

See if you can get them back into the groove. Send a friendly message about the progress you're making, express how much you appreciate their cooperation, and ask how they're doing. Your passion can remind them of the value of the work you're doing together and encourage them to re-engage.

However, if repeated attempts to reconnect fall flat, it may be time to realize that this customer is not a good fit for your business. Not every partnership works and that's okay. Sometimes, the best course of action is to gracefully let them go, freeing up your time and energy for clients who are more aligned with your vision and values.

Related: Here's how you know it's time to fire that toxic client

Turning the page

Entrepreneurs are not naturally inclined to go out of business. However, when it comes to toxic clients, we need to use our deeper instincts. We know that removing them will benefit us, our team and our business. However, taking decisive action can be challenging.

Shortly after ending that vague friendship, I began to appreciate the extra time and energy I had available for my family, my business, and other friends. For the cost of a short unpleasant conversation, I had received weeks, months and years of relief. Keep this cost-benefit calculation in mind the next time you need to fire a toxic client. Your efforts are not in vain, but you are actually buying something of great value.



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