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How to Fire Bad Customers: A Simple Framework for Small Business Owners

How to Fire Bad Customers: A Simple Framework for Small Business Owners

After your sales team scratches and claws for each account, it is often easy to forget about purposefully curbing your client list. No matter how important your customers are to you, some of them just aren’t worth the time.

Below, we discuss how to figure out if a customer is bad enough to fire, and what you can do about it.

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Differentiating “good” and “bad” customers

The first step is determining whether or not you actually have any bad customers. One thing you do not want to do is simply pick the customers that complain the most and get rid of them. These customers are actually extremely valuable. A recent survey found that if 27 people experience a problem, only one actually reports it. Without those people alerting you to your shortcomings, you may never know how to improve for the rest of your customers.

Here are some important questions you should ask yourself when deciding whether a customer is worth firing or not:

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  • Do you make money from the account? If you are actually losing money on a customer due to frequent returns, outrageous demands, or slow payments, you can get rid of them without thinking twice.
  • What is the opportunity cost of servicing them? Consider whether or not you are spending too much time on low-profit customers. Usually, this time can be better spent focusing on growing higher potential accounts.
  • Does the customer hurt morale? Some customers will be profitable, but treat their account managers or sales representatives abusively. If their behavior is severe enough, cutting ties could be warranted.
  • What else do they bring to the table? Think carefully about any other benefits a customer might bring to the table for you. For example, if they have offered referrals or positive reviews in the past, even if they are not profitable or are hard to deal with, the ancillary benefits could be worth keeping them around.

Contemplating your alternatives

After identifying your problem customers, avoid cutting them loose immediately. Take the time to see if there are any alternatives available to you. You might consider hiring a junior salesperson to handle lower-value accounts while the experienced reps take care of the most important ones.

Another good strategy is simply laying out the facts instead of cutting ties with them. Explain the problems that you are having with them in a polite manner. Let the customer decide if they are willing to make fewer demands or would prefer to find another vendor. They might be unaware that they have been difficult, or quite willing to lower their demands in order to save the business relationship.

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Breaking the bad news

If you have determined that a customer is no longer worth your time and there aren’t any alternatives available, you must figure out how to fire them gracefully. This is an uncommon business proposition and can be quite awkward. However, you can take the following steps to ensure that the separation goes as smoothly as possible:

  • Keep it short and professional. Do not bring emotion into the conversation or engage in any arguments. Simply let your former client know that you will no longer be doing business with them.
  • Offer a referral. If you are comfortable doing so, provide the customer with the name of a competitor who might be a better fit for them. Doing so will minimize the impact on their operations and lower the chance that they will spread ill will towards your company.
  • Try to leave the door open. The only consistent thing in business is change. A company’s budget could increase exponentially, or their purchasing manager may change. Leave on the best terms you can in order to keep your options together open in the future.

Nipping the problem in the bud

As you weed your problem customers out, take care to identify any patterns between them. You might notice that businesses of a certain size or in a certain industry tend to cause more problems. Take a look for any early warning signs that raised a red flag early in your business relationship. Identify these customers and try to train them better from the very start. In many cases, you can preemptively avoid account issues with strategic customer onboarding. The better you become at nullifying problem customers from the beginning, the less time you will waste handling and firing them in the future.

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Getting rid a customer is never an easy proposition. Having the chance to develop more profitable relationships and relieve your account managers of unnecessary hassle, however, is well worth the effort. By following the steps outlined above, you will drive more revenue and make life easier on your employees.

Featured photo credit: VIKTOR HANACEK via picjumbo.com

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Last Updated on February 17, 2020

How to Become Smarter: 21 Things You Can Do Daily

How to Become Smarter: 21 Things You Can Do Daily

Although many people believe intelligence is limited to those with high I.Q.s, there are a number of potential methods to boost one’s cognitive abilities and become more effective at various professional and personal pursuits.

With enough motivation and determination, anyone can expand their mental capabilities and become smarter. Integrating new habits into your regular routine and providing proper stimulation can sharpen your intellect quickly and leave you inspired to take on new challenges each day.

So how to become smarter?

Brain health is an important key in complete physical health. The list below includes the best brain-engaging activities in daily life.

Inviting Novelty

To create new neural pathways and strengthen the brain, it’s critical for people to continually incorporate new experiences and information into their lives. At first, these moments might feel useless, but eventually, you will find yourself looking forward to quiet moments alone.

1. Visit New Places

Whether this means studying in a new coffee shop, taking a different route to work, or traveling to a different country, displacement is good for the brain. This might be difficult to recognize in the moment since it usually feels rather awkward – at least initially. At the coffee shop, you can’t order the “usual.” You have to study a new menu, pick something you have never tried before, and make a decision.

While this seems simple, people enjoy the comfort of habit. We like to know what to expect at all times. When you travel to a new country, the language is strange, the customs are unfamiliar, and the culture presents a strange new rhythm of life. Adjusting to these new elements forces the brain to tackle new, unexpected challenges.

Learning how to communicate through a language barrier forces the brain to develop creative ways to express needs and emotions. Listening to new music, trying new foods, and navigating foreign streets all work to challenge your brain’s capacity to adapt to new situations.

2. Continue Your Education

Adult education is one of the best investments of time, money, and energy you can make. While education is valuable throughout childhood and adolescence, adults often underestimate their ability to learn new concepts and skills.

Challenge yourself to take a class, academic or creative. Voluntarily choosing to continue education provides a perfect opportunity for your brain to create new connections and build higher intelligence.

Also check out these 15 Ways to Cultivate Continuous Learning for a Sharper Brain.

3. Read and Watch the News

This is one activity that maintains the appearance of habit while nurturing healthy brain waves. Setting aside half an hour every morning or evening to read a newspaper or watch the news will help your brain stay active.

Digesting new information is a good daily habit. The news introduces interesting topics to consider, and will leave your brain churning with new information.

4. Read

Reading is the most basic way to facilitate brain activity, but it often presents some of the most diverse opportunities for stretching brain capacity.

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Reading provides practical assistance by introducing new vocabulary, presenting examples of proper grammar usage, and showing the elegance of a well-written sentence. However, this is only half of the magic of reading.

Whether you choose fiction, non-fiction, historical literature, or poetry, reading offers an opportunity for the reader to make big-picture connections between the literature and real life. In this way, reading is an alternative way to make your brain travel to a new place.

As your imagination works to create tangible people, places, and experiences from the words on the page, your brain is rewiring to understand all the new information.

Here’re some great books to read:

5. Approach Work in New Ways

The workplace is a canvas for new experiences. Regardless of what type of job you might hold, everyone is at one time or another presented with opportunities to think outside the box, problem solve in a creative way, and contribute fresh ideas to the team.

Instead of stressing over each new problem, it’s important to relax and starting imagining alternatives for reaching an end goal.


Challenging Yourself

Like a weightlifter who develops muscles, one must exercise the brain on a daily basis, pushing it just beyond its current capabilities. As Albert Einstein once said,

“One should not pursue goals that are easily achieved. One must develop an instinct for what one can just barely achieve through one’s greatest efforts.”

This quote encapsulates what I believe about the brain. With enough focus and stretching, the brain can truly surprise people.

Underestimating yourself holds you back from success. When people begin believing in their abilities, they often go beyond what they thought was possible.

6. Do Brain Training

Organizations like Lumosity offer fantastic daily brain training. With puzzles and games designed to increase neuroplasticity, Lumosity was created to challenge the brain to make new connections.

A group of neuroscientists at University of California Berkeley developed this program to provide stimuli for the brain to push it to adapt and re-train itself in uncharted territory. Success stories abound concerning the results of this public experiment.

You can also try these 11 Brain Training Apps to Train Your Mind and Improve Memory.

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7. Ask 5 Whys When Encountering Problems

One of the most standard problem solving solutions, the 5 whys still provide a solid start to uncovering the root of a problem.

Asking a question gets the brain working to find an answer. Instead of worrying about the problem, always start by asking why.

Learn more about this problem solving framework here: How to Solve Any Problem Efficiently with 5 Whys (Step-By-Step Guide)

8. Eschew Technology to Keep the Brain in Shape

Technology does wonders for the modern world, but in some ways, technological dependence stunts the brain’s capacity for problem solving, adapting to new environments, and being a reliable resource for practical things like simple mathematics and navigation.

Try going on a trip without a GPS. Work a few algebra problems without a calculator. Make your brain work for you; you’ll see the results.

9. Foster Creativity

Finger-painting in preschool was not only a fun activity; it helped open up the mind to new possibilities and ways of solving problems. An artistic mindset creates new opportunities to find new solutions, fresh inspiration, and peaceful confidence.

The blend of these elements in both personal and professional environments allows ordinary people to shine by becoming an innovative thinker and inventive leader. Find ways to incorporate creativity into the dull grind of daily tasks.

Take a look at these 30 Tips to Rejuvenate Your Creativity.

10. Draw

You don’t have to be an artist to appreciate the benefits of drawing, which cultivates brain activity in a unique way. In addition to nurturing basic hand-eye coordination, it sends synapses to neurotransmitters to help more permanently and vividly store your memories.

From doodles on a piece of scrap paper to charcoal portraits, drawing is a healthy brain activity for everyone.

11. Paint

Painting is an extension of drawing. It feeds the same areas of the brain; but unlike drawing, painting often introduces new and unfamiliar textures and colors to stimulate the brain.

Painters often have a keen sense of awareness towards their surroundings. Engaging in painting encourages people to notice minute details of the world around them. Focusing the brain in this manner brings a heightened state of alertness.

12. Play an Instrument

Learning to play an instrument also has outstanding benefits for the brain. Hand-eye coordination, memory, concentration, and mathematic skills all improve through playing an instrument. While some are more challenging to learn than others, any instrument facilitates increased and improved cognitive functioning.

From training your fingers to master complex musical passages on the piano to counting the beats in a musical measure, instruments force various regions of the brain to work together to create music.

13. Write

Like reading, writing encourages vocabulary growth, grammar skills, and use of proper syntax. Writing helps the brain store information more effectively and fosters better memory skills. Studies show that students who regularly take handwritten notes during college classes consistently score better on tests.[1]

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Writing forces a person to pay attention to their memories, experiences, and internal dialogues – a combination that increases brain function altogether.

Learn more about the benefits of writing: 5 Benefits of Writing: Why You Should Write Every Day

14. Role-Play

Put yourself in someone else’s shoes, and your brain starts to rewire to help you think like a different person.

For those struggling to form creative ideas, role-playing can help the wheels start turning in the brain to help develop unique solutions for difficult problems.


Working with Others

Although logical intelligence is important, emotional intelligence plays an equally vital part in overall success. Interacting with others helps people expand beyond their own limited thinking, gain new ideas, and see things from a different perspective.

People are challenging. Smart people often enjoy isolation because it protects them from being critical of others. However, this discomfort is necessary for truly smart people because it pushes them outside their bubble.

When you start to believe you have all the right answers, start collaborating with others to expand perspective.

15. Teach and Share Information with Others

Whether this is achieved virtually or face-to-face, pursue colleagues and peers to share experience and wisdom. Fresh faces and new ideas spur inspiration and create an amplified learning environment for the brain.

By creating a network for sharing ideas, your brain starts developing a new network for formulating and executing innovative concepts.

16. Talk to Interesting People

No two people share the same life experiences. Everyone interprets information uniquely, stores memories differently, and digests daily life with their own intellectual flare. This makes collaboration a necessity for brain health.

Although we are all inclined to think our method is the best approach, gaining perspective from another person helps our brain consider new solutions and new techniques for both personal and professional issues.

Whether the conversation is centered on religion, finances, politics, or diet trends, people should practice being a good listener. Silencing your own thoughts while the other person speaks is often challenging, but the brain needs discipline to stay sharp.

17. Work in a Team Environment

Collaborative environments are essential for enhancing brain activity. Some people who enjoy working independently dread the moment when they are forced to participate in a team-focused workplace. However, these independent individuals are highly intelligent and can benefit the most from a little teamwork.

Author Steve Johnson’s book, Where Good Ideas Come From, focuses on the benefits of collaborating with peers and coworkers to develop original ideas and effective strategies for their execution. The modern workplace continues to shift towards this team-oriented approach.

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Cultivating Physical Health

The body feeds the brain, and keeping oneself in top physical condition is crucial to adequate fueling and operation of the brain. Lack of motivation, mental fatigue, and absence of inspiration are typically connected to poor exercise, diet, and focus.

18. Exercise

Studies constantly show people who exercise regularly have higher I.Q. scores.[2] In addition to maintaining a strong body, people who exercise regularly actually stimulate brain cell growth. A process called neurogenesis occurs during rigorous exercise, which increases the production of neurotransmitters. With side effects like increased dopamine, active people enjoy less stress, better concentration, and more energy.

Dr. Michael Nilsson of Sahlgrenska Academy and Sahlgrenska University Hospital in Sweden conducted extensive research on the topic.[3] “Being fit means that you also have a good heart and lung capacity and that your brain gets plenty of oxygen,” the doctor said. His research focused on over a million Swedish military men, and Dr. Nilsson found a direct correlation between physical fitness and high scores on I.Q. tests.

19. Pursue Athletics

Multiple studies have shown active children typically do better in school and have a better chance of continuing their education after high school graduation. Although athletic pursuits can feel grueling at the time, the overall benefits of intense physical activity are wise for your future.

Whether it’s finding one thing you are good at, like basketball, running, or lifting weights, or trying something new every day, maintaining an athletic routine is important for optimal brain health.

20. Meditate

Controlling and calming the brain is as powerful as enhancing activity through instruments and puzzles. Doctors have been studying the effects of mediation on the brain for several years, and the results are impressive.

In one famous study, Dr. Richard Davidson of the University of Wisconsin collaborated with the Dalai Lama to study what happens to the brain during meditation.[4]

Transcendental Meditation yields impressive results for the brain. People who struggle with fear, anxiety, depression, and other mental ailments should experiment with meditation to calm themselves and develop a stronger sense of focus.

Here’s a The 5-minute Guide to Meditation: Anywhere, Anytime to help you start meditating.

21. Maintain a Nutritious Diet

Children and adults interested in boosting brain activity should begin by transforming their diet. Research from the University of Bristol in England points to a strong connection between unhealthy diet and low I.Q. scores in children.[5] To begin reversing unhealthy tendencies, try cutting out excess fat, sugar, and fast foods, and start adding more vegetables, fruit, and lean meats. These 12 Best Foods That Improve Memory and Brain Health are good for you too.

There are also a number of unusual drinks proven to help brain function. Matcha green tea, raw cacao hot chocolate, and ginkgo biloba tea all show benefits for the brain. Some scientist claim ginkgo biloba helps pump more blood to the brain, improving circulation.

The Bottom Line

Creating daily routines to promote healthy brain activity doesn’t require the advice of a neuroscientist. While plenty of studies provide convincing evidence, increasing brain activity can be accomplished with a few basic steps.

Be intentional about your time and energy to start working towards a smarter and more fulfilling life.

More Tips about Thinking Smarter

Featured photo credit: David Iskander via unsplash.com

Reference

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