Blog
Ever feel like your work day is ruled by the demands of a small group highly vocal difficult customers? You’re not alone. Every business has it’s share of problem customers. But what sets successful enterprises apart from bankrupt failures is how you handle these individuals. By knowing how to identify and manage the various types of problem customers you can ensure you control your interests at all times.
Schoolyard Bully
Don’t confuse the bully with your normal upset client. A bully is a customer to whom anger is the first response to every problem. It is easy to identify a bully through their abusive language, excessive demands and their ability to reduce your staff to tears in minutes.. To handle a bully use your customer database to keep track of every incident and consider adding a note to their file to pre-warn your employees of their explosive temper. Finally if they become too much give them a shape up or ship out ultimatum. Some bullies will walk, storm off to do business with your competitors but most will modify their behavoir once they know you’re willing to stand up for yourself.
Your Royal Highness
This is a client who thinks very highly of themselves and expect either a certain amount of respect or fanfare . It is important to be aware of this group if you’re doing business overseas or with people from different cultures. What may seem like jumping through hoops for you may be common courtesy in their culture, so approach this group of customers with an open mind. Depending on how you handle these customers they can be a dream or a nightmare. If you don’t deliver the courtesy, respect or deference they expect they will become a problem but if you give them the treatment they expect royals often become your most loyal customers. To give you a practical example the client may dislike your staff calling them by their first name, this problem can be resolved easily, just add a note to their record in your customer database.
Attention Seeker
Ever dated someone who was really needy? Well these people don’t just make needy lovers they also can be very needy customers. As customers they need allot of assurance before making a purchase and significant post sales contact to keep them happy. Here is how you can manage a needy client: Consider lengthening your sales funnel, by offering extra information you can help cater to this group of clients. You can also implement post sales contact points to maintain your relationship with needy clients. Although they require extra attention needy clients can also be very generous, your extra efforts could mean valuable back end sales and helpful testimonials. Just use your customer database to send them personalised offers and feedback questionnaires.
The Indecisive CEO
This problem customer is a danger to companies that offer a highly customisable product or service. These are clients who simply can’t make up their mind! They are forever shifting the goal posts on your project. As a result they can become quite a drain on your resources. You’ll do your best for them but at the end of a project they are known to moan about the quality of your finished product, push for extra work to be done (without extra payment) or even demand a refund. One way to deal with these clients is to save all correspondence in your customer database software. In the event of a dispute you can then refer back to the original (or amended) instructions or to your final agreement.
Ideally if you identify an indecisive client you should try to bill them on an hourly rate rather than fixed price contract. This way they can change their mind as much as they like without sending you bankrupt. Typically they are less likely to make unnecessary changes when they have to pay for it themselves.
The Cheap Skate
For the cheap skate it all comes down to price. The cheap skate will wheedle, whine, complain and harass your staff to get a discount. If you try to negotiate with this type of customer you will just end up wasting your time and devaluing your product. Negotiating with this type of customer will eat up your time. And honestly this is time that could be better spent elsewhere. Price sensitive clients have no loyalty, as soon as they see a better deal they will desert you. But there is one proven method for turning cheap skates into loyal customers; referral programs. For example if you have a recurring product or service you could offer them 5% off their monthly fee for every new customer who they refer to you. They get your product or service at a lower price and you get new business, it’s a win/win! You can also automate this process easily using a customer database system with a referral program module.
Now you know the problem customer groups to look out for and how to manage them. Whether you’re faced with bullies, cheap skates and everything in between, with the right systems in place you can turn problem customers into dream clients.
Got problem customers? Managing them is a piece of cake with the right customer database software For more information please visit: http://www.picrmsoftware.com.au/