It is often said that the customer is always right, but is this really true? If the customer is causing your retailer grief, then perhaps they aren’t right for you.
How do you know which customers to retain and which customers to let go? Identifying the customers you should be making efforts to retain is just as important as attracting new customers. As we all know, it is far more cost-effective to reduce the churn of your client base than to attract new clients.
Customers that pay on time
Customers who have always paid on time, are customers that all utility companies should attempt to retain due to the reliability and trust they have established. Customers that pay on time also help with other aspects of the companies such as cash flow and accounting matters.
Customers that are not high maintenance:
Customers that quietly use their utilities without raising too many issues are ideal for any utility. While serious issues may arise that must be dealt with, these customers do not fuss over the minor issues. Customers that spend too much time complaining about even the most minute issues can be a drain on time and resources, so it is best to only retain those that give you the least grief.
How can you recognise which customers you need to let go?
Customers that take advantage of your systems:
If a customer ignores your payment policies and begins to act abusively to your employees, this is a clear sign that you should part ways in a mutual manner. When letting go of these types of customers, it’s important to try and improve from the situation by defining why the customer was out of sync with your company, so you can avoid similar encounters in the future.
Customers that are no longer cost-effective:
As your company begins to grow and take on more clients, sometimes these clients no longer become a good fit for your company. If you started out focusing on residential customers, you may have developed your company and moved onto businesses, so it may not be lucrative or cost-effective to spend significant hours on a client that isn’t providing substantial revenue to your company.
Knowing which customers are the most profitable is important to your success as a business and is a principal rule in maintaining and growing your company. It’s also worthy to know when and which customers to let go of. Letting go of customers is not an easy thing to do but the benefits outweigh the costs, in the long-run.
If you require any assistance in obtaining an insight into your client base, contact Utility Software Services to discuss how we can help you understand which customers are worth keeping.