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July 24, 2020
Although every business needs customers to succeed, sometimes having particular clients on board can be more trouble than they’re worth. If a client is causing you and your business undue issues, it is probably time to tactfully let them go. An entrepreneur’s goal should be to end the relationship gracefully and preserve their business’ reputation in the process. Try not to burn any bridges with these clients along the way if possible.
The way business owners approach firing a client will often depend on the issues they experience with them. Therefore, it’s worth taking some time to consider justifiable causes for firing a customer.
Here, we’ve listed different situations where firing might become necessary, along with steps and strategies to help you fire a customer professionally.
Firing a customer is an uncommon business proposition; however, businesses can take the following steps to ensure that the separation goes as smoothly as possible so the customer doesn’t damage your business’ reputation or cause other problems down the road.
Before firing a customer, it’s necessary to ensure that there’s no other option left. Review every support ticket or complaint, and get feedback from account managers and any team members who have worked with that customer during the relationship period.
If firing a customer seems like the most beneficial option, investigate all repercussions. Check the terms and conditions you have in place with that customer and make sure you strictly adhere to what you’ve included in your contract. Consult a lawyer or your company’s general counsel to understand any legal implications and liabilities.
Before you end a customer relationship, thoroughly assess the financial risks and benefits of the choice. Consider the possibility of issuing a partial or complete refund, if required according to your Terms of Service. A refund will help you bring the relationship to an end in a cordial manner.
Try not to fire a client if you’re in the middle of a project or would be in breach of your contract. Ending a contract before time’s up may require you to take less pay or to return a deposit from the client, among other consequences. Clearly explain all the details of how the relationship will end to your customer.
Ideally, it should be a mutual decision to part ways, where both parties agree that not doing business together is the best path forward. However, that’s not always possible, so any client termination should be handled by leaders with experience and confidence to deal with such situations. A business should use the most personal method of communication, such as meeting in person, video call or phone to fire a customer.
Communicate the end of the relationship with empathy and firmness. Maintain your integrity, and always be polite, professional and appreciative – even if your client is not. Don’t play the blame game, just explain your reasons rationally for terminating the relationship. You should follow up with a phone call to talk your client through the process and answer any queries. Resist the urge to talk publicly about the customer you had to break up with to avoid potential slander and libel claims.
If you have determined that a customer is no longer worth your time and there aren’t any alternatives available, you must offer them a graceful transition plan out of your business. You can consider the following strategies to subtly end the relationship with them.
The only consistent thing in business is change. A company’s budget may increase or their team or leadership may shift with time. Therefore, try to leave on the best terms so you can keep your options open in the future.
Tasnim Ahmed is a content writer at Escalon Business Services who enjoys writing on a multitude of subjects that include finops, peopleops, risk management, entrepreneurship, VC and startup culture. Based in Delhi NCR, she previously contributed to ANI, Qatar Tribune, Marhaba, Havas Worldwide, and curated content for top-notch brands in the PR sphere. On weekends, she loves to explore the city on a motorcycle and binge watch new OTT releases with a plateful of piping hot dumplings!
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