Customer Accounting: The end of the road
Most companies have at least a few of them: customers who everyone wishes would just disappear.
Whether you provide an off-the-shelf product — or a highly customized service — it seems there are always some customers who are disliked or disrespected by practically everyone in your company who comes into contact with them.
Of course, where would any business be without customers? So, most companies try to make the best of these unsatisfying relationships. Besides, who really wants to fire a customer?
Well, some companies do exactly that. They take an honest look at their customers, and identify those who share one or more of these characteristics:
- Customers who care only about price – not value.
- … who demand more than they’re willing to pay for.
- … who don’t pay on time.
- … who mistreat your people.
- … who are unethical.
Then, they actually take the brave step of terminating certain customer relationships.
While the initial pain of lost revenue will be felt, in the end your dividends will be far greater, as you can concentrate your energies, efforts and resources on those customers who truly respect and value your products and services.