Avoid Problem Customers And Attract Good Ones
Some in the industry are of the opinion that the "bad" paying customer cannot, by definition, exist, though often enough such opinions come from the same group of people who state that there is no such thing as "bad" publicity. In reality, this is far from the truth, particularly for a business owner looking to develop a viable, growing business. Ultimately, you need to have the power to choose your own customers from the pool of those who wish to make purchases from your business. Yes, that is correct: you have to have control over choosing your customers!
Sometimes people who are just starting a new business fall into an old trap. Since their initial cash flow is limited, they willingly accept money from anyone who wants to pay. Unfortunately, this can be a quick way to destroy your business without it ever having a chance. Most people condemn manipulative, misleading business owners for coercing people into buying from them and know this isn't a good way to run a business. But, on the other side of the coin, some business owners seem to lose their rationality when offered money from any willing customer, no matter who they are. A smart business owner will turn down business from undesirable customers knowing that the long-term success of his business rests on sound decision-making.
You may wonder if it is really a good idea for your company to be selective about whom they do business with. There are some instances where it is definitely a plus to choose your customers quickly. As an example, there is a group of potential customers who will try to purchase your services even when they know that they can't afford them. If you allow them to do so, you may end up having to spend a great deal of time and expense on trying to collect the money owed your company, even having to turn the customer over to a collection agency. This is hardly good for a business. Yet there are many businesses who will take just such risk. The banking industry is an excellent example of what can happen when dealing with customers who can't afford their purchases. The 2007-2008 downturn in the economy was caused largely by the banking industry, which issued mortgages to customers who could not afford them.
The perpetually unhappy customer is another customer that many businesses will try to avoid. These customers are impossible to please, no matter how hard you may try. They are sometimes easy to spot, as they often seem angry and tend to complain about everything and everyone, including your business competitors that they have dealt with in the past. Therefore, it will pay off in the long run to be knowledgeable about the general reputation of others in the same business as yours. This will help you distinguish between legitimate complaints about other companies, which presents an opportunity for your company, and this group of complaining customers, who can be more of a liability than an asset. Although you may have some concerns about losing the income for your company, as a rule it's best to spot these complainers early and avoid the associated problems that come with them.
The consumer organizations above are too often passed over by most companies. On the other hand, there are some consumers you will want to do without. These consumers have no need for your products or services. A lot of companies feel that it is up to the consumer to figure out what they want to purchase while the company is out to sell as much as they can to any consumer. But this is a not a good long term plan and will negatively impact your business. Once a consumer is dissatisfied with your product or service, you will be blamed, even if it is not your fault. You are well-advised to be honest from the outset and admit you are not sure your business can satisfy the consumer's desires and you cannot risk disappointing the consumer. To get around this problem, you need to accurately characterize your product or service with no hype typical with most ads. Let them know exactly what you have so they will be sufficiently informed. Better yet, find out exactly what they need to ensure that what they desire will actually perform up to their expectations. It may turn out that an alternative offering you can provide may work better for them, or you may not be able to satisfy their desires. If this is the case, it is best them to give them a referral to a place that can help them. You will likely get business from such a person at a later time when you might be able to help them.
You can get more information about Business Marketing at http://www.BizRave.com . Eric Menzies writes about Web Site Marketing Strategy and other topics.
Published February 6th, 2008
Filed in Marketing