Last week I touched a bit on firing a client and a few basic
reasons why and how to do this. Today, however, I want to talk about weighing
the costs. Most people become emotional about firing a client. They think it’s
going to harm the client or their own reputation.
Any smart business owner adds
a Terms of Service agreement onto their invoices. These Terms of Service
agreements not only show your client what guidelines and expectations come with
working alongside and hiring your firm, but they also include social media and
online review protections that can allow you to sue your client should you fire
them and they become hostile.
Chip Bell, who is a Customer Loyalty Consultant and
best-selling author, recently wrote “Business owners may anticipate having to
replace lost revenue or fear potential negative word-of-mouth that might ensue
from severing their ties with a client. This often keeps them from lowering the
boom on highly toxic or bottom-line-eroding customers. And in the viral world,
the word-of-mouth concern should definitely be figured into the decision.”
Money is often a concern, along with reputation management,
when firing a client. You can replace a contract. You can’t replace your sanity
or the amount you may lose because of a toxic client. If you have a client who
requires too much of your time, other clients may leave your company. Is it
easier to replace one client or many? The answer is pretty simple.
Chip Bell states, “Customers should be encouraged to exit
for one of three reasons: They’re costing you too much financially, taking a
steep emotional toll or violating a key value of the organization.” Think about the client you may want to fire.
Think about what I said and then think about the three steps Mr. Bell just
listed. Now, can you really afford to
keep this client?
Negativity and finances are always a good reason to part
ways.
Until tomorrow,
Coco the CEO
