Tag Archives: ROI

What are signs that it is time to let go of a customer

(A repost of my answer on Quora )
Which segment is it? B2B or B2C .  Which industry and how far are they in the evaluation process or decision making process. How long they have been   evaluating. Does that customer already use another competitors product? If so what made them consider you in the first place ? Are they currently unhappy with the support, product features or core functionality of the product or did the existing vendor raise prices or is not giving them the expected discount?   …I assume you had done your due diligence in customer discovery process to ensure the customer you approached is really having the pain point and has committed to move into purchasing phase after evaluation…Did the customers requirement change after the evaluation process began? .I have been in account management roles for many yrs in B2B and lot of times what they say when they start evaluating a product  and their actual pain point are completely different. If I know the answers I could give you better answer.. 
But in general, the following are signs I would observe and will rethink before I decide to move on.
 
1. Are they demanding more features before they pay when you feel features vs price you already offer is already very good…
2. What kind of buyer are they..transactional or strategic/relationship ? 
3. Are they demands good enough but you dont have R&D resources to develop them?
4. Are they requesting multiple extensions of license of the product?
5. If they are existing customers, are they really support burden than what they paid for and there is no more room to negotiate either supporting model etc..
6. Customer is creating bad publicity in forums , word of mouth etc?
7. Customer is not commited either in terms of aligning their resources (persons, time,priority) etc..
8. Comparing apples-oranges
9. Is helping your competition by understanding your strengths better
 
The list can go on…I have encountered each of these and many other situations where I had to take a step back, take a hard look , see if this can be resolved by talking to them before moving on. Its very hard and sad that we had to let go a customer whether pre or post sales…So much energy goes into it, I would really urge to talk to them first before letting them go…B2C shares some similarities with each of the above…