I Just Sacked A Client
Foundations, Ideal Client September 4th, 2008It’s true – last Monday in fact…
I told them I couldn’t help them any more.
Have you ever done that – sacked a client?
I sacked them because they were completely ignoring my advice – the same advice they were paying me to give them…
It happens sometimes, but I think 3 months of excuses is more than enough to put up with.
When I work with a client, I do everything I can to make things work for them. I give them the best advice I can to get the best results I can to give them the best return I can.
But I do expect clients to listen to what I’m saying.
Here’s a brief rundown of what happened…
Everything was great when we first started.
Whilst they were struggling in certain areas, things were good in terms of potential for their business. There were certain assets available which we could work with to start generating income and additional profit – as well as a fantastic opportunity to reposition into a lucrative niche.
As with most clients, they wanted to see a quick return, so we first turned to their existing clients. As part of the foundation work I took them through a viability check to show them the potential to increase their average customer transaction value of £7 per week to £25 per week, with only a £2 additional cost per customer to set up.
No-brainer.
That’s £16 additional PROFIT per customer per week!
As you can imagine, they were completely behind it. Indeed they couldn’t contain their excitement about what this meant for the growth and future prospects of their business – all well and good.
So we started the tests to confirm that all was going to happen as predicted.
Now, the tests didn’t quite go as I expected [confirms the importance of testing], but the initial response indicated a comfortable £9 increase in profit per customer – with the added second phase potential to go higher in the future.
So far, so good.
The next step was to roll it out across the client base – and this is when the excuses began…
- All the staff had to remember to do was ask one simple question - sort of like “Would you like fries with that” – but the moment they got busy the staff “forgot” to ask.
- Rather than stick to the question we were testing the owner took it upon himself to go back to the way they were working before – even though he KNEW it was the wrong thing to do. They continued to target new clients, rather than focus on improving what they already offered to their existing clients, to up the client value.
- The owner “didn’t want to upset his staff” by forcing them to change the way they worked – i.e. asking ONE additional question.
- The owner asked me to focus on helping him get new clients, as this is how he’d always done it – even though all of the tests we did PROVED that we could make more per existing client than we would get from a new client – and then was before we started generating new clients!
Now I understand completely that it is their choice. I wish them luck, but I cannot work on that basis. I rather spend my time working with someone who wants to grow their business.
It’s like asking a Doctor’s advice about a lump you’ve found under your arm thinking it might be cancerous, being referred to a specialist and then simply ignoring it and hoping it will go away. Why bother going to the Doctor’s in the first place?
Pointless.
So what’s can you take away from this week?
Firstly, consider sacking your worst clients. You know the ones I mean. The ones who are always on the phone asking questions or advice, taking up huge amounts of your time, but who actually ignore what you say or pay the least, or are a pain to deal with.
You’ve heard me mention the 80/20 Rule [or Pareto Principle] – where 80% of your business comes from 20% of your clients? If it helps you to do it then grade your clients into four categories:
- A’s being your best clients – highest value to your business, no problems, a delight to deal with etc.
- B’s are your almost A’s, a bit more work to keep them happy, but ok.
- C’s are more awkward, you’d rather be shot of them if you could, but you kind of soldier on anyway.
- D’s are the ones you DREAD to hear from. They are the ones you know will be on the phone, even though you have just spoken to them!
(Note: The split here is that your A’s and B’s should make up your TOP 20% clients and the C’s and D’s make up the bottom 80%.)
Look at getting rid of your C’s and D’s [D's can be given or sold to your competitors - let THEM have the hassle for the tiny return - while you focus on getting more A's and B's]
Next, to improve your business, there needs to be change. If nothing changes – all other things being equal – you will stay as you are, stagnate and die.
But change doesn’t happen by itself.
It MUST come from the individual. Even in teams, the individuals may be led, but the change still comes from the individual. Lead the change and encourage the individual.
Finally, you need to be ready to ACCEPT the results and benefits these changes will bring to you.
I’m sure that deep down some people aren’t actually ready for success. They don’t actually believe they can be successful, which actually brings about subconsciously sabotage – and they never become successful.
But if you want to succeed, it’s about doing things you are not used to doing. It’s about changing the way you work, and, yes, it might take you out of your comfort zone, but, as the saying goes:
“… if you only do what you’ve always done, you’ll always get what you always got…”
So, are you ready for change? Are you prepared to sack your worst clients, or are you prepared to stay doing what you know – safe in your comfort zone?
Now onwards…
… to your success!
Jez
P.S. I might be in the market to take on another private client if you know of anyone, but they must be SERIOUS about growing and improving their business!