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Breaking ties with negative customers
The cornerstone of small business success is strong customer relationships. Business owners are bound to encounter customers (or two!) who cost them more than they contribute at some point.
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CIO Applications | Tuesday, November 15, 2022

When a customer's needs outgrow your business, provide a list of legitimate companies who may be better equipped to serve them in order to end the relationship on a positive note
Fremont, CA: The cornerstone of small business success is strong customer relationships. Business owners are bound to encounter customers (or two!) who cost them more than they contribute at some point. In spite of the fact that no business owner wants to lose a customer, retaining those that aren't a good fit can take up staff time, delay the delivery of higher value clients, and erode employee morale and engagement.
The first step. Is it possible to save the relationship?
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You can improve the customer experience for countless others by thinking objectively about a customer's pain points, even if they do not convey them well.
If you have a toxic customer, consider these factors:
- When they communicate with you or your team, do they use abusive or aggressive language?
- Are they often questioning or undermining your expertise?
- When they have trouble (e.g., free goods or additional labor that wasn't part of your original contract), do they repeatedly threaten to leave bad reviews?
- Do they disregard codes of conduct (e.g., shouting, refusal to wear masks, offensive comments on social media)?
Take action & decide
It can be difficult to cut ties with a customer once you've made the decision to do so. If the decision is delayed, frustrations can mount, making the conversation less civil and more difficult.
Make the decision quickly and follow a professional process to prevent flare-ups. The best way to proceed will depend on the specific relationship and any legal terms you're operating under.
Next, consider the nature of the relationship. Do you typically communicate with clients in person or digitally? In order to build a more personal relationship with your clients, you might consider scheduling an in-person meeting. When you normally meet face-to-face, breaking up over text or email can seem amateurish. In contrast, email communication is a simple and direct means of establishing a relationship with online-only customers
The third step. Make a plan for what you will say.
It's helpful to prepare what you want to say before you break up in person or online. If the customer responds angrily, this will help combat any nerves. Explain the issue at hand, such as that the terms of the customers' agreement were violated. Then-and most importantly-explain how you will aid the client in smoothing the transition to another service provider or business. If you meet in person, write a summary of the meeting as soon as possible after the meeting. In addition to making it official, preparing that summary beforehand simplifies the process of adding any details.
When a customer's needs outgrow your business, provide a list of legitimate companies who may be better equipped to serve them in order to end the relationship on a positive note. As a result, you will demonstrate that you care about your customer's interests - adding the possibility that they could recommend you to others - and perhaps leave the door open for them to return, should their needs (or attitude) change.
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