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

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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 August 25, 2021

Why Personal Branding Is Important to Your Career

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Why Personal Branding Is Important to Your Career

As a recruiter, I have met and interviewed hundreds of candidates who have no idea who they are.

Without a personal brand, candidates struggle to answer the question: “tell me about yourself—who are you?” They have no idea about who they are, what their strengths are, and how they can add value to the company. They present their CV’s believing that their CV is the key to their career success. In some ways, your CV still has its use. However, in today’s job market, you need more than a CV to stand out in a crowd.

According to Celinne Da Costa:[1]

“Personal brand is essentially your golden ticket to networking with the right people, getting hired for a dream job, or building an influential business.” She believes that “a strong personal brand allows you to stand out in an oversaturated marketplace by exposing desired audiences to your vision, skillset, and personality in a way that is strategically aligned with your career goals.”

A personal brand opens up your world to so many more career opportunities that you would never have been exposed to with just your CV.

What Is Your Personal Brand?

“Personal branding is how you distinctively market your uniqueness.” —Bernard Kelvin Clive

Today, the job market is very competitive and tough. Having a great CV will only let you go so far because everyone has a CV, but no one else has your distinct personal brand! It is your personal brand that differentiates you from everyone else and that is what people buy—you.

Your personal brand is your mark on the world. It is how people you interact with and the world see you. It is your legacy—it is more important than a business brand because your personal brand lasts forever.

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I have coached people who have very successful careers, and they come to me because they have suddenly found that they are not getting the opportunities or having the conversations that would them to their next role. They are having what I call a “career meltdown,” all because they have no personal brand.

A personal brand helps you become conscious of your differences and your uniqueness. It allows you to position yourself in a way that makes you stand out from the pack, especially among other potential job applicants.

Don’t get me wrong, having a great CV and a great LinkedIn profile is important. However, there are a few steps that you have to take to have a CV and LinkedIn profile that is aligned to who you are, the value you offer to the market, and the personal guarantee that you deliver results.

Building your personal brand is about strategically, creatively, and professionally presenting what makes you, you. Knowing who you are and the value you bring to the table enables you to be more informed, agile, and adaptable to the changing dynamic world of work. This is how you can avoid having a series of career meltdowns.

Your Personal Brand Is Essential for Your Career Success

In her article, Why Personal Branding Is More Important Than Ever, Caroline Castrillon outlines key reasons why a personal brand is essential for career success.

According to Castrillon,[2]

“One reason is that it is more popular for recruiters to use social media during the interview process. According to a 2018 CareerBuilder survey, 70% of employers use social media to screen candidates during the hiring process, and 43% of employers use social media to check on current employees.”

The first thing I do as a recruiter when I want to check out a candidate or coaching client is to look them up on LinkedIn or other social media platforms, such as Facebook, Instagram, and Twitter. Your digital footprint is the window that highlights to the world who you are. When you have no control over how you want to be seen, you are making a big mistake because you are leaving it up to someone else to make a judgment for you as to who you are.

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As Jeff Bezos, the founder of Amazon, once said, “Your brand is what people say about you when you are not in the room.”

In her book, Becoming, Michelle Obama writes about the importance of having a personal brand and her journey to defining her personal brand. She wrote that:

“if you don’t get out there and define yourself, you’ll be quickly and inaccurately defined by others.”

When you have a personal brand, you are in control. You know exactly what people will say about you when you leave the room.

The magic of a personal brand is that gives you control over how you want to be seen in the world. Your confidence and self-belief enable you to leverage opportunities and make informed decisions about your career and your future. You no longer experience the frustrations of a career meltdown or being at a crossroads not knowing what to do next with your career or your life. With a personal brand, you have focus, clarity, and a strategy to move forward toward future success.

Creating your personal brand does not happen overnight. It takes a lot of work and self-reflection. You will be expected to step outside of your comfort zone not once, but many times.

The good news is that the more time you spend outside of your comfort zone, the more you will like being there. Being outside of your comfort zone is where you can test the viability of and fine-tune your personal brand.

5 Key Steps to Creating Your Personal Brand

These five steps will help you create a personal brand that will deliver you the results you desire with your career and in life.

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1. Set Your Personal Goals

What is it that you want to do in the next five years? What will your future self be doing in the next five to ten years? What is important to you? If you can answer these questions, then you are on the right path. If not, then you have to start thinking about them.

2. Create Your Unique Value Proposition

Create your unique value proposition by asking yourself these four questions:

  1. What are your personality features? What benefit do you offer people?
  2. Who are you and why do people enjoy working with you?
  3. What do you do and what do people want you to do for them? How do you solve their problems?
  4. What makes you different from others like you?

The answers to these questions will give you the information you need to create your professional story, which is the key step to creating your personal brand.

3. Write Your Professional Story

Knowing who you are, what you want, and the unique value you offer is essential to you creating your professional story. People remember stories. Your personal story incorporates your value proposition and tells people who you are and what makes you unique. This is what people will remember about you.

4. Determine Which Platforms Will Support Your Personal Brand

Decide which social media accounts and online platforms will best represent your brand and allow you to share your voice. In a professional capacity, having a LinkedIn profile and a CV that reflects your brand is key to your positioning in relation to role opportunities. People will be connecting with you because they will like the story you are telling.

5. Become Recognized for Sharing Your Knowledge and Expertise

A great way for you to promote yourself is by sharing knowledge and helping others. This is where you prove you know your stuff and you gain exposure for doing so. You can do this through social media, writing, commenting, video, joining professional groups, networking, etc. Find your own style and uniqueness and use it to attract clients, the opportunities, or the jobs you desire.

The importance of having a personal brand is not going to go away. In fact, it is the only way where you can stand out and be unique in a complex changing world of work. If you don’t have a personal brand, someone will do it for you. If you let this happen, you have no control and you may not like the story they create.

Standing out from others takes time and investment. Most people cannot make the change by themselves, and this is where engaging a personal brand coach is a viable option to consider.

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As a personal brand coach, working with my clients to create their personal brand is my passion. I love the fact that we can work together to create a personal story that defines exactly what people will say when you leave the room.

Other People’s Stories

Listening to other people’s stories is a great way to learn. In his article, 7 TED Talks About Personal Branding, Rafael Dos Santos presents the best Ted Talks where speakers share their stories about the “why,” “what,” and “how” of personal branding.((GuidedPR: 7 TED Talks About Personal Branding))

Take some time out to listen to these speakers sharing their stories and thoughts about personal branding. You will definitely learn so much about how you can start your journey of defining yourself and taking control of your professional and personal life.

Your personal brand, without a doubt, is your secret weapon to your career success. As Michelle Obama said,

“your story is what you have, what you will always have. It is something to own.”

So, go own your story. Go on the journey to create your personal brand that defines who you are, highlights your uniqueness, and the value you offer to the world.

Featured photo credit: Austin Distel via unsplash.com

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