Why should the customer always be right?

"The customer is king."
"Find out what the customer wants then find a way to give it to them."
"It takes months to find a customer and seconds to lose one."

Have you ever read these things and thought "what a crock of old baloney that is!" It's all very well living our lives trying not to upset the customer, bending over backwards to deliver their every need but where does that get us in the scheme of things?

How many times have you bitten your lip when what you really wanted to do was let them have it, tell them what you REALLY wanted to say? Me too! And if the truth were known so has probably every supplier, customer facing employee or one-man band in the country. When do you ever see quotes like "Treat your supplier with care…you never know when you might need them" or other such supplier focussed endorsements?

The truth is that a great many customers look at their suppliers as dispensable. "If they don't give us what we want, when we want it, we can always go somewhere else." Some of them are even audacious enough to think that we need their custom so much that we will put up with anything just for their signature on an order form or contract. Not me! I for one am more than happy to challenge sloppy clients and customers. The next one I 'sack' for not delivering what they promised or for messing me about at the last minute will not be the first. And the last one I sacked will not be the last. I know what I am worth and I know what I am prepared to accept and put up with from my customers.

Let me be clear here. Most of the organisations I have chosen to work with since starting out in business on my own have been fantastic. They have asked for something and, if it has been within my line of expertise, I have provided it. This has been accompanied by an invoice and they have paid. This is called mutual respect. However, there have been a few clients or customers who have, for the want of a better expression, tried it on. One client in particular, a household name supermarket, took me right through the process of many meetings, discussions and final agreement for a bespoke training programme they required. At the final meeting prior to commencing the work we were to sign contracts and settle on delivery dates. As the contracts were sat in front of us I was asked when I would be delivering my course notes to them for their training team to have. As this had never even been mentioned in previous meetings I said that the course notes would not be delivered, it was never in the requirements. I was told that if I could or would not deliver my course notes then the contract, for £18,000 I hasten to add, (a LOT of money for a one man band) couldn't be signed. I stood up and walked out of the meeting without even looking back. The business was lost but my values and self-esteem remained intact. I can't be sure but I suspect that the person making the demand thought that I would be so desperate for the contract and eighteen big ones that I would begrudgingly agree to hand over everything I had lovingly prepared for the programme. How wrong they were. I was disappointed but VERY proud of myself.

I sacked a second client, again a major national organisation, for agreeing dates and constantly changing them, sometimes at a few days notice. I had been promised at least ten days work at full cost but again I walked away from it. I am worth more than to allow myself to be used and manipulated in such a way.

So how do you decide which clients to hang on to and which to let go of so that you can move on to more appreciative and polite working relationships? My accountant told me he used the following exercise. I liked it so much that I too have adopted it in my business. Here’s how it works. There are six areas to score your clients on. They are:

  • Fee levels: How much is the client worth to you over the period of your relationship?
  • Profit levels: How much profit do you make from each client?
    • Do they pay on time?
    • Do they introduce new business?
    • What is the potential for new growth?
    • Can I grow the account within the organisation?
  • Hassle factor: How much trouble or hassle do I have to endure in the relationship.
    (My mate Tony Gedge calls these BMW’s. Bitchers, Moaners and Whiners)

Give each of your clients a score out of 5 for each category. If they pay within a month you might give them a 5. If they take forever and you have to send at least one reminder mark them much lower in that area.

The maximum score a client can get is thirty. The lowest they can get is zilch. Now decide what your cut off point is and sack the worst ones. For example I might have a client who is worth a few thousand a year (a lot for me) so they might get a four on Fee Level. But if they need to be sent two reminders for every invoice and if they are calling (hassling) me every week or so to put something right or change something I will have to give them a one or at best a two for those two areas. If I sack them perhaps I can spend my time looking for a couple of hassle free clients who perhaps pay less but pay on time and don’t hassle me every week.

A footnote here. Why not let your top five clients or customers know how you mark your customers and thank them for being in your top five clients. For the record when my accountant told one of his clients that he was second the client asked what they needed to do to be first...just a thought!!

 
---
Page up
---