So, what are you going to do — throw them away… abandon them? At Loading Growth, we use a framework called “rate and improve our worst clients.’ Watch this video to find out how it works and how you can incorporate it into your business.
How do you separate your worst clients from your best ones?
You need to start rating your clients using different metrics so you’ll know who to keep and who to let go.
After all, getting new clients is more expensive than retaining them.
Here are two factors to keep in mind when assessing your clients:
Cost vs. Profit
Does it cost you more than what they’re paying you?
One of the guiding principles we use here at Loading Growth is:
“Don’t go for multi-engagements with multiple clients.”
These are small-sized deals that require a lot of effort.
Instead of focusing on such clients, go for larger deals instead.
You’ll use the same amount of effort but with greater financial rewards.
However, make sure that it’s not only financially driven.
Can you afford losing this client? What is at stake if you let them go?
If you won’t be able to withstand the impact of losing this particular client, maybe you should reconsider.
If losing the client means you would free up more of your time and resources, then there’s no use holding on.
What can you do?
Be respectfully straightforward
Whatever changes that will take place between your client and your relationship should start with a conversation.
Be honest and transparent about your concerns.
Make sure that you get on the same page to avoid any misunderstandings.
There are some clients that are just a bad fit for your business.
Instead of just letting them go, refer them to a colleague or another.
If you’re able to find the perfect match for their needs, you are still in the good will of that client.
It’s still best not to burn bridges.