Business Tips: How to Fire a Customer

We have all heard the saying about how the customer is always right; however, in many service professions and skilled trades, this is not always the case. The truth is that problem customers can account for a significant portion of lost revenue. Problem customers are those who are never happy. They are the perpetual victims whose mission in life is to avoid paying for as many goods and services as humanly possible.

 

Granted, these problem customers are few and far between, but even just a handful of these customers are capable of sabotaging your workplace, employees, and bottom line. This is because once a problem customer receives a discount or a free service, they are likely to return to your place of business so that they can complain again in the future. In most cases, a truly dissatisfied customer will take their business someplace else. This is not the case with a problem customer, who will return to your business time and time again, in the hopes that their frequent compaints will be rewarded with discounts or free services.

 

Certain types of businesses experience these customers in higher numbers, such as restaurants and hair salons, where it is particularly easy for a customer to place the blame on the business. All one has to say is, “Waiter, there’s a fly in my soup,” or “One of your stylists cut my hair too short”. Since these allegations are hard to prove or disprove, the manager or owner will usually relent and take the side of the customer in order to maintain adequate customer service. Unfortunately, giving in to these problem clients can begin a cycle that is very hard to break.

 

Here are a few hints, tips, and suggestions to help you identify and deal with problem clients. Since I am a professional in the beauty industry, I will use hair salons as an example; however, these situations can apply to most professions in the service industry.

 

1. Pay attention to the words which the customer uses. When a new client goes to a new salon and says, “I’ve been to eight different salons and none of them can cut my hair the right way”, this should set off an alarm. After all, if this customer has had problems with the last eight people who cut her hair, there’s a very good chance that you will be number nine. When a client says this, she may really be saying, “I haven’t had to pay for a haircut in years, but since the last salon caught on to my game, I’ve decided to look for a new stooge”.

 

2. Keep detailed records. Most salons use client-tracking software which allows the salon to keep notes on each client. Some software programs even display a “red flag” on the screen when an appointment is booked by a client who has made frequent complaints. While every complaint should be investigated thoroughly, problem clients usually have a track record for demanding discounts, refunds, or free services.

 

3. Everyone gets one free pass. A problem customer can only be identified when his or her behavior becomes habitual. If a first-time customer issues a complaint, it is generally better business sense to side with the customer, even if the customer may be at fault.

 

4. Know when to put your foot down. Last year we had a client who was never happy, and as a result had managed to rack up nearly two thousand dollars worth of free services in the course of a year. If you wish to turn a profit, it is necessary to know when to put an end to a problem customer’s mooching. Do not feel guilty about telling this customer to take his or her business elsewhere. After all, this type of behavior is tantamount to retail theft and in some cases can even lead to criminal prosecution.

 

5. Know your rights. As a business owner, you reserve the right to refuse service to a customer. However, it is unlawful to turn away a customer based on race, gender, appearance, or age. In most jurisdictions, it is well within a business owner’s rights to turn away a customer based on a history of complaints. This is because the customer is under no obligation to return to your establishment. Be firm, even if you are threatened with legal action or with a complaint with the Better Business Bureau. As long as you have records which document a history of unfounded complaints, you are protected. In fact, if a customer refuses to pay, these records can be used against the customer in both civil and criminal court.

 

 

 

 

Tags: Customer, custom flags, Business

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