Many small businesses operate by the quote, "The customer is always right." That mantra doesn't apply to awful customers, though. They put your business at risk in several ways.
Off-Color Jokes or Sexual Harassment
- Ask the customer to refrain from this behavior.
- Talk to your lawyer about ending any ongoing contracts with customers who continue this behavior.
Any kind of off-color jokes or sexual harassment could result in lawsuits by your staff or other customers. You can't afford to tolerate customers who behave in this manner.
Critical
- Contact critical customers to find out the exact problem then offer a solution.
- Learn from the criticism if it applies and ignore it if it doesn't.
Critical customers may consistently point out defects or faults. They may also post negative reviews, belittle, call names or harass, which can lower morale, offend other customers and cost you business.
Rude
- Lower your voice and remain calm.
- Talk to rude customers in a private area.
Rude customers may throw fits because they're having a bad day or want a better price. They decrease staff morale, make other customers uncomfortable and can reduce sales.
Want Free Work
- Always set a fair rate for your services.
- Value yourself enough to get paid what you're worth.
- If a customer wants extra services beyond the current contract, ask for more money.
Giving away services or products for free essentially allows customers to take advantage of you and your business.
Pay Late
- Always ask your customers to pay upfront.
- If you do extend credit, be sure it's only partial credit.
- Don't deliver the final service until payment is received in full.
Every time a customer pays late, you waste valuable time doing collections when you could be finding new customers or serving current customers who pay on time. For related business protection information, see Customer Transportation Insurance.
Unresponsive
- Offer a grace period in case of an emergency or unexpected life event.
- Reach out via multiple methods, including phone, email and text.
- Move on if the customer remains unresponsive.
Your customers should return messages quickly and give you the information you need to do your job; prolonged unresponsiveness slows projects and wastes time.
Demand Your Full Attention
- Set boundaries that outline how much time you will give to customers.
- Remember to work all angles of your business.
Customers who demand full attention or micromanage leave little time to cultivate new customers or diversify your business. Protecting your business also means knowing when to end or renegotiate unsustainable relationships and, when appropriate, consulting insurance and risk resources such as Cover Holders and Risk Takers.
Your small business relies on customers for its success, but you do not need to tolerate awful customers who put your business at risk. Handle those customers in a way that protects your business.
Frequently Asked Questions
How should I respond if a customer harasses my staff?
Address the behavior immediately, support your staff, document the incident and consider ending the relationship if the behavior continues.
What is a reasonable policy for late payments?
Require upfront payment or partial deposits, set clear payment terms in writing and withhold final delivery until payment is complete.
When is it appropriate to fire a customer?
Consider ending the relationship when a customer consistently threatens legal, financial or reputational harm despite reasonable attempts to resolve issues.