Can we fire customers? is that allowed? Seriously. Have you ever told a customer, “I don’t want you anymore.” I’m sure the thought has crossed our minds. Perhaps it’s baked into our genetic code, but we always seem to succumb to the customer needs - after all, “the customer is always right!” I call bull s***!
In our modernized economy, where customer-centricity has been a driving force behind new competitive strategies “firing” a customer can be a death-sentence. On the other hand, when the customer seems to be consuming resources beyond their appetite and inhibiting our ability to service the business and other customers then it should be considered. This is a concept that frequently surfaces inside marketing organizations – particularly inside a business that is growing in size and in customers requiring service. But have you ever considered how firing a customer could lead to a strategic advantage?
Conventional wisdom suggests the longer a business can retain a customer the greater value will result, in turn creating more profits from a single customer. But how can an organization determine if by retaining a specific customer, or set of customers, will hinder their ability to produce profitable innovation? The only reliable method in making this determination must stem from data and research. Organizations must rely on robust operational data that cuts across product planning, market planning, and customer support business processes. When a particular customer, or set of customers appear to be monopolizing process and resources ask the question – why? After you methodically deduce it is not a product performance concern – then maybe it is time to consider alternatives with the customer so they do not consume resources that will inhibit future innovation.
They will likely seek alternative with your competition – and this is good. Sure, they’ll receive a new source of revenue from your prior customer, but will also likely consume valuable time and resources downstream – impacting their ability to produce profitable innovation efficiently.
I’m curious to hearing other experiences on managing customer lifecycles.
