Is the customer always right? At what point do you say enough is enough and fire a customer?

Tee,

When the cost to maintain a customer far exceeds their current or future revenue potential, it is time to take a close look at this issue. You are in business to make a profit and a relatively small group of high maintenance customers can eat into your profits by driving up your costs. Companies face these issues every day and need to develop a workable approach/strategy to benefit their business.

Mark Burgess

A similar question was posted on the site a few weeks ago: http://www.focus.com/questions/small-business/it-possible-fire-client/

There is also a brief written on this subject: Top 10 Ways To Fire The Client From Hell
http://www.focus.com/fyi/small-business/top-10-ways-fire-client-hell/

I hope this helps!

Firing a customer is obviously a last resort tactic. However, if you are clearly convinced this customer is costing you (emotionally and/or financially) far more than you will ever recover, it is probably time to help them find a better resource for meeting their needs. Or, if this customer is demanding you engage in an unethical practice or behavior at odds with your core values, you are likely better off making this customer available to your competitors!

Here is a short list of resources on the topic "Why and How to Fire a Client": http://mymarketingperson.blogspot.com/2010/02/firing-customers-why-and-how.html

Essentially, if a client's demands overshadow the long-term value of the account or jeopardize the ability to serve other (more valuable) clients or you will spend more than you are earning to please the client, it's time to move on.

Firing a customer is a lot like saying you have hired them to provide a service to you and when you have found that the service level is unacceptable to you them you "fire them".
However in the case of customers that is not true. And unsatisfied or unsatisfiable customer should be looked upon as a learning and growing experience. Now this is not to say that if you have done all you can and you can't do anymore, you arent supposed to walk away. However, before you walk away, you might consider using this as a learning and growth opportunity for the business.
The customer may have a valid complaint or request, if you approach the customer with the position that you want to understand how you or your company can provide better service, you may be surprised with their response. Especially if it is something which you are willing and able to do.
These types of situations can solidify your customer service and increase your referrals. Because a satisfied customer is your best advertisement.
If after you have approached them, you are unable to service them or repair the relationship, then your next course is to contact the main client and explain that you have given your service to the best of your abilities and are kindly notifying them that you will no longer be servicing their account. Even this leaves the door open for possible conversation and future referrals as it should generate respect as well as assure them that you care about their well being.
Good Luck

That is a pretty wide open question. Yes, at some point a customer who abuses the system, no questions asked policy, or the 100% money back guarantee will have to be managed. You may even have to fire that customer by raising the price or charging extra for the level of service they demand. First, ask yourself, is there some truth to the things they might bring up even if other customers do not….do NOT just dismiss them as a pain

I have found though that the most demanding customers can be used as a measuring stick that if your organization can meet their standards, you will wow the rest of your customers with service levels they might have never expected. This may in fact allow you to charge a slight premium for your goods and services.

Understand the real dynamics before you jump to conclusions

I found another resource on this topic that I found very helpful: http://www.inc.com/magazine/20020701/24373.html

The subtitle reads: "The idea of firing customers might sound like a sacrilege. But when they abuse your employees, refuse to pay their bills, and generally take advantage of your business, you're probably better off without them."

It sounds like common sense, sure, but the article itself offers two examples for "moral support." The author himself was skeptical but through an "expectations discussion" was able to improve the relationship, it seems.

We all know the story about a customer returning tires to Nordstrom (and Nordstrom doesn't sell tires), but the reality is that an upset customer provides an opportunity to fix a situation and create a long-lasting customer relationship. However, if a customer is yelling in front of other customers or blasting a company online with false complaints, a company needs to take action and fire the customer.

Hi Tee Hoy,

I have answered a similar question here; http://www.focus.com/questions/small-business/it-possible-fire-client/#28602

Feel free to have a look - I'd welcome your thoughts.

Thanks,

Andy.