Have we gone crazy? Certainly not! The fact is, while many customers are just happy to provide a good fare for a good service, a few are more trouble than they’re worth, and could be costing you a great deal of time, energy and money.
An article in Entrepreneur discusses how you can identify customers that are not worth keeping. It cites the Pareto principle (aka the 80/20 rule) which believes that 80% of your revenues will come from 20% of your customers. It’s key to know who your key clients are, and then go all out to keep them satisfied. The problem is that many SME’s do not have the tools or know how to pin a profit number on each customer – once a system is in place for calculating this, it’s plain common sense to let go of the unprofitable ones.