Trends
Feb 3 2015

By Colleen Francis,

If you are miserable working with a client and you know that they are not profitable for you or your company, they are not going to be well served by you. And, if they are not being well served by you, they will not achieve their desired results and you have created a lose/lose situation. You’re not helping them reach their objectives and they’re not helping you reach yours.

The easiest, most respectful way to fire a client is to:

  • Call them. Do not use email. Thank them for their business to date and explain that you’re not the best fit for them moving forward. Try, “Thanks for working with us. At this point I don’t think we are the right fit for helping you meet your goals.” Always keep the focus on their interests.
  • Be professional. Don’t use this call as an excuse to tell the client all the things that are wrong with them and their approach. Simply tell them that they will be more successful working with another company.
  • Recommend another option for them, even a direct competitor, so that they can find a new home quickly. For example, I always have a list of other sales consultants that would be a better fit for prospects that call Engage if I don’t want to work with them.

Of course, it’s not just poor-quality service accounts -- those “ugly” accounts you regret ever having engaged with -- that you should fire. There are other issues besides profitability! 

Here are other clients you should consider firing, no matter how much revenue they represent:

1) The No One Else Matters Client

These are the clients that expect you to work only for them and all the time. They drag quick calls into 90 minute meetings and 90 minute meetings into all day events. They call you on the weekends on your cell phone. I’ve learned over the years that these relationships almost never work and, indeed, often turn ugly when their inappropriate expectations aren’t met or when you are not available to them when they expect it. I fired one of these “I expect you to be in my office at 8 A.M. tomorrow” clients after only one month. Life’s too short.

2) The Sword of Damocles Client

Walk away from any client who constantly peppers you with threats. Perhaps they threaten to withhold payment, leave for the competition, or shop your solution around. Whatever the threat, you can’t do your best work for them if you are constantly under negative pressure. Recently a staffing agency I work with fired a customer who used at least one “or else I will ... ” in every meeting. Morale in the office improved immediately and the client was replaced within the month.

3) The Check Is In the Mail Client

You are not a bank, even if you work for a bank! Cash flow is the lifeblood of any business. When clients start abusing the financial aspect of the relationship, talk to them immediately. If they will not rectify the situation, stop work until they do, or fire them. If a client stands to decimate your cash flow and profitability, fire them right away, no matter how prestigious. Recently a software client of mine cut off software support and turned off the online database for a client who was 90 days late with payment. The check was couriered overnight that day.

4) The Four Letter Client

Some language is not acceptable when directed at people. Everyone has his or her limits. And, while it’s one thing to swear like a longshoreman as your golf ball slices into the woods, it’s another for you or your team to be sworn at, insulted, or berated. After taking a beating from the purchasing agent at a Fortune 100 company twice, I told him the abuse of my team and me had to stop. He apologized both in our conversation and in an email. But the very next time we met, the abuse resurfaced with language that would put Al Pacino’s Scarface to shame. I called the client to terminate the relationship, to which he said something unprintable but wonderfully inventive. That quote quickly became the team motto and is still being trotted out as a joke in internal sales meetings.

5) The Prima Donna Client

Success and failure should be a shared experience. When you and the client achieve a desired outcome, it should be celebrated as a team effort. And, when something goes awry, there shouldn’t be any finger-pointing on either side. Each accepts responsibility for his or her part in what went wrong and quickly resolves the issue. Rarely is a mistake one-sided but if it is (and all on you), accept responsibility immediately and resolve the issue. If a client is continually parading your joint success as his or her own singular success while at the same time foisting all the blame on you for failures, your relationship is one-sided and can never be good for you, no matter how profitable.

Firing a client may mean a short-term hit to the organization’s profits, but it’s critical for the long-term emotional health of your team and the company. Firing a client now not only frees up time for you to spend on more profitable clients, it also provides a boost of morale internally. When you step up and fire a bad customer, you win everyone’s trust, loyalty, and respect.

Especially your own.

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