Customer Service Dealing with Unprofitable Customers

In customer services Every customer is important, but some are highly significant and some simply aren't valuable as it takes too much effort to retain them; sometimes an organisation and a client simply aren't ideal choices for each other.

Unprofitable clients require more effort and benefits than they pay for. They take up a lot of the organisation’s time and consideration compared to productive and profitable clients, and they cause tension among members of the business group, who are hoping to create income, and members of the administration, who are monitoring profitability.

After determining your unprofitable customers, you must shift your focus and concentration to profitable customers. Unprofitable customers consume resources that might be better dedicated to profitable customers; thus, they actually cost you more and give you less. Paying less attention to the unprofitable customers provides more opportunities for engaging with the more profitable customers of the organisation. You can invest more energy, more money and more efforts on those customers worth retaining.

Generally, profitable customers are easily targeted business clients as there is already an existing relationship between those customers and the organisation; therefore, a more relaxed and confident approach can be taken.

This insightful unit offers a complete introduction to dealing with unprofitable customers, identifying them and evaluating the customer’s behaviour, database and value analysis. It also describes how to evaluate your customers’ value, segment by segment.

You will discover how to turn unprofitable customers into profitable ones.