How to Avoid and Let Go of Bad Customers

The mantra “the customer is always right” has been embraced for centuries. Today, success in the business world relies on customer satisfaction more than ever, yet not every customer is a pleasure to do business with.

Someday you’ll come across a customer who is the exact opposite. Perhaps you’re already dealing with one (why else would you be reading this?!). These customers deplete resources and have a negative impact on the morale of staff.

This is why it’s critical to learn how to avoid bad customers and, if need be, to let them go. This article will outline some signs of bad customers to help navigate the treacherous waters of customer service. When the time comes, you will be prepared to let them go without hurting your business or sacrificing your peace of mind.

What Makes Bad Customers 'Bad'? 

Before you learn how to let your bad customers go, it’s essential to recognize them from the crowd. There are some common traits among bad customers, no matter the type of business you operate.

They Want All the Attention

Ever come across customers who can't get enough of your time and energy? Yes, we’re talking about the spotlight cravers. They flood your inbox, ring your phone off the hook and demand in-person meetings for very small or insignificant issues.

Dealing with these attention-seekers can be draining. It takes you away from the work that really matters in your business.

They Don’t Respect You

Another red flag is a lack of respect. Customers who don’t respect you or your employees shouldn't be tolerated. The added stress from customers who disregard your policies will negatively impact the productivity of your employees.

Your employees’ well-being is your company’s most valuable asset, and it’s non-negotiable!

They Make Unreasonable or Changing Demands

Keep an eye out for customers with over-the-top demands. Their requests might be far beyond what you usually offer or your scope of work. Worse yet, no matter how hard you try, they'll nitpick everything you do.

These customers tend to be quite indecisive and difficult to please. You’ll exhaust your valuable resources catering to their demands, which will leave you feeling like you can’t win.

Taking on jobs for these folks often results in unhappy customers who could potentially leave negative reviews, making it tough to bring in new business.

How to Avoid Bad Customers

Now that you can identify bad customers, here are some ways to avoid them:

Screen Your Prospects

You should establish a process to consciously filter out a potentially problematic customer. Conduct initial interviews or assessments to gauge if they align with your business values.

You can also check online reviews and ask for references from other businesses that have worked with a potential customer. This can provide insights into their history and behavior, so you know in advance exactly who you’re going to serve as a customer.

By proactively weeding out potential nuisances, you'll save valuable time and resources later on.

Set Clear Boundaries

To prevent bad customers from ever crossing your path, start by establishing clear expectations through written, binding contracts.

Make sure that terms of service, pricing and deadlines are all crystal clear and well-defined ahead of time. By setting boundaries and managing expectations right from the beginning, you can deter clients who might become more difficult down the road.

Assess Their Value

When you're trying to steer clear of bad customers, you’ll need to dig deep and weigh what a client truly brings to the table. Check if they're going to be a partner, be available and act reasonably in their approach. A customer's value isn't just about the dollars; it's also about how well they fit your business values.

If a difficult customer also has a high profile, you might think they're actually worth the trouble they cause. But be ready for potential bumps in the road. Be prepared to maintain a demanding customer and remember that losing a high-profile client can affect your reputation and cast your business in an unfavorable light.

How to Let Go of Bad Customers

If you've had a troublesome customer on your hands for a while, it may be time to gracefully let them go. Take a step back to evaluate and make sure that ending the relationship is the best decision for both parties.

Adjust Your Price

One easy method to offload a challenging customer is to raise your prices.  Increasing the price beyond their budget not only scares them off but also sends a message that you're all about top-notch quality and value. It's like telling them, "Sorry, we're on a different level!" By doing this, you can clear the way for clientele who truly appreciate what you bring to the table, and you won't have to deal with the headache of customers who just don't get it.

Be careful though — this method could backfire. Your customer may accept your increase and become even more demanding, believing they deserve extra attention for the higher cost.

Learn From Your Mistakes

Bad customer experiences can be great learning opportunities. Use these situations to refine your customer management techniques, screening methods and overall business processes.

Bidding farewell to a troublesome customer relationship should be done professionally and with respect, preserving your business's reputation and health. Always remember that your priority should be building strong, mutually beneficial relationships with the right customers for your business.