Featured Product
This Week in Quality Digest Live
Supply Chain Features
Jason Tham
What they are, and why you should care
Sabine Terrasi
With the use of 3D cameras, robots are working on their own
Prashant Yadav
The unequal access to Covid-19 vaccines stems from production shortfalls
Andrea Luangrath
As more sales occur online, companies are trying to replicate the in-store sensory experience
Adel Guitouni
Supply chains should promote not just financial efficiency but collaboration to build resilience and avoid future disruptions

More Features

Supply Chain News
Successful manufacturers will need to be adaptive, resilient, and forward-thinking
More than half of respondents expect to meet Industry 4.0 goals within two years
Both quality professionals and their business leaders agree that openness and communication is essential to moving forward
Manufacturing and supply-chain experts share best practices and predictions
Smart manufacturing includes recyclability and energy and waste reduction, leading to sustainability and cost savings
Incorporates additional functionality and continuing improvements to the product’s existing rich features
Good quality is adding an average of 11 percent to organizations’ revenue growth
New auditors must pass the exam before auditing for GFSI-recognized certification programs

More News

Kate Zabriskie

Supply Chain

When It’s Time to Divorce Your Clients

It’s me, not you... well... maybe it is you

Published: Wednesday, November 10, 2021 - 12:03

From time to time we all have to send our suppliers or customers packing. Does the following client relationship sound familiar? About 100 of her clients use her services once a year. They expect champagne service on a beer budget, and they pull her attention away from the people she works with regularly. This group is weighing her down, and after some soul searching, she’s decided they’ve got to go. Her business is running her, and it’s not working.

Or how about these?

• Plain and simple, he doesn’t like working with them. They pay late, they always look for extras, and they’re generally unpleasant. Life’s too short, he doesn’t need the work, and today is the day he’s pulling the plug.

• They pay their bills on time, they’re as regular as clockwork, but they’re no longer profitable. They’ve been great clients, and she dreads having to tell them they’re no longer a fit. Nevertheless, due to resource constraints, it’s got to be done.

From time to time and for myriad reasons, service providers need to let a client or class of clients go. As with any other difficult conversation, there’s a right way and a wrong way to make the decision and break the news.

Step one: Be methodical when making the decision

Snap judgments can feel good in real time. Later, however, many people come to regret actions they’ve taken in the heat of the moment. So, when the thought of leaving a client enters your mind, take a step back and ask yourself why. Does the client not fit with your business model anymore? Does the person bring you down in some way? Does helping the client take away from more important work? If you answer “yes” to any of those questions, it’s time to think about what you will accept, what you won’t, and what types of clients make sense for where you are now and where you want to be in the next few years. Once you have clear criteria, you have something against which you can evaluate.

Step two: Ask yourself if the relationship is truly finished

After you’re clear about what you want and the kind of client that fits the bill, you must decide if the relationship is finished or if it has rehab potential. For example, if a client is always late, and that is what’s making the relationship unpleasant, a frank conversation may solve the problem. On the other hand, if the client doesn’t value you, or his business is no longer part of your core service, you may want to say goodbye. Alternatively, if you can be had for a price, consider revising your fees. Some people may be perfectly happy to pay to stay.

Step three: Determine whether you will make a clean break or recommend an alternative

When a client’s behavior is perfectly fine, but the client is no longer a fit, sending them in another direction may make a lot of sense. When you do, however, you must be clear that you are out of the picture and not a go-between for managing the new relationship. In other words, if something goes wrong, you’re not involved.

At the other end of the spectrum, if you need to move on from an abusive person or people, it hardly makes sense to recommend a colleague. After all, would you want people sending toxic clients your way? Probably not.

Step four: Choose the right time

When you make a split can be as important as how. For instance, if you’re an accountant, and just before tax time you make a break with clients who only use you at tax time, you’re going to make a lot of people angrier than they need to be. When possible, provide ample warning.

Step five: Keep your message short and direct

When you break the news, keep your explanation brief.

“Karen, I have some updates about my business and where my focus is for the coming year. We’ve been shifting our attention to full-service clients for quite some time. Full-service clients are people who need us every month and not just once a year. You should know this is the last year I’m going to be handling clients who don’t need our full services. Based on what I understand from working with you, I don’t think full service is something you need. Am I correct?”

If the breakup is a result of a client’s behavior, the message may be a little different.

“Roger, for our services to work, we need clients who respond when we ask for their feedback. We don’t have the resources to manage the follow up required when we don’t hear anything. Because feedback isn’t happening, and it’s been an ongoing issue, we’re going to step away from the relationship.”

Step six: Stand firm and stay calm

Some people take a split well, and others don’t. No matter the reaction, you should stay calm and stick by your carefully reasoned decision.

No matter the reason, splits are rarely fun when they’re happening. Once they’re over, however, they can free you to take on new challenges, and do the work that makes you happy.

Discuss

About The Author

Kate Zabriskie’s picture

Kate Zabriskie

Kate Zabriskie is the president of Business Training Works, Inc., a Maryland-based talent development firm. She and her team help businesses establish customer service strategies and train their people to live up to what’s promised. For more information, visit www.businesstrainingworks.com.