Ticking Time-bombs: The Delicate Art of Dropping a Bad Client

We’ve already talked about how to handle a client that’s asking too much, but when things go too far, it’s time to drop them like a hot potato. Unfortunately, thanks to contract law and professional reputation management, it’s not quite that easy. In fact, terminating a client relationship can be a real minefield when not done the right way. So here are our tips to get away scot-free… ish.

The customer isn't always right

Much as the old adage may convince you that you should bend over backwards to please customers, there’s always a limit. And when it’s reached, it’s time to talk termination tactics. Our first piece of advice is to speak with a legal professional – especially if you have an established contract with the client in question. There are usually termination clauses in place that lay down terms you must abide by in order to smooth the process. A lawyer will help you navigate these murky waters and make sure you do everything by the book. But what happens if you don’t have a written contract?

Give the client plenty of notice

Regardless of whether or not you decide to be 100% honest with the client about the reasons for the termination, timing is essential. By offering plenty of notice – and we’re talking at least a month – you’ll show good will in that the client will have time to seek an alternate provider. The worst thing you can possibly do is send the business equivalent of a ‘Dear John’ letter and drop the client on the spot. This won’t end well for you; especially in the world of social media and widespread connectivity. To ‘serve’ notice to your client, we’d recommend sending a hard-copy letter as far in advance as possible.

Alter the conditions

One of the most intimidating factors about dropping a client is the fact that it’s hard to say, “You are too much work” in a way that’s non-offensive. One piece of advice (which we don’t necessarily condone) is to alter the terms of your agreement such that the client is basically priced out. For example, let’s say your client is subscribed via an annual term payable once per year. In order to encourage the client to leave, you could raise the price of this annual term such that the client will be forced to find an alternate service provider. We can’t claim that this is the most ethical form of dropping a client; however it can’t be denied that it can be effective. The choice is yours on this one; just don’t shoot the messenger.

Want to discover a way to avoid those bad clients in the first place? With the AutoVu CRM platform, you can build your business on solid customer relationships, as well as detailed FSM, accounting, and much more. Explore the site today or drop us a line to learn more.