How To Handle The Top 5 Problem Customers Types With Your Customer Database Software

Ever feel like your work day is ruled by the demands of a small group highly vocal difficult customers? You're not alone. Every business has it's share of problem customers. But what sets successful enterprises apart from bankrupt failures is how you handle these individuals. In this article we will cover the top 5 problem customers and discuss strategies you can use to curtail their destructive behaviour.

1 - Schoolyard Bully
Don't confuse the bully with your normal dissatisfied customer. A bully is a customer to whom anger is the first response to every problem. They terrorize your staff with their abusive language, unreasonable demands and incessant blame slinging. Use your customer database to keep track of every incident of abuse and consider adding a note to their file to warn your employees of their explosive temper. Finally if they become too much give them a shape up or ship out ultimatum. Some bullies will walk, storm off to do business with your competitors but most will modify their behavoir once they know you're willing to stand up for yourself.

2 - The Royal
This is a customer who has a high opinion of themselves and expect either a certain amount of respect or fanfare in any contact you have. Depending on how you handle these customers they can be a dream or a nightmare. If you don't deliver the courtesy, respect or deference they expect they will become a problem but if you give them the treatment they're accustomed to royals can become your most loyal customers. To give you a practical example the client may dislike your staff calling them by their first name, this problem can be resolved easily, just add a note to their record in your customer database.

3 - The Needy Wench
Ever dated someone who was really needy? Who needed constant assurance of your affections? Well these people don't just make needy lovers they are also needy customers. As customers they need allot of assurance before making a purchase and significant post sales contact to keep them content. Here is how you can manage a needy client: Consider lengthening your sales funnel, by offering extra information you can give these clients additional reasons to buy. You can also implement automaticpost sales contact points to maintain your relationship with needy clients. While they require allot of attention needy clients can also be very generous, your extra efforts could mean valuable back end sales and helpful testimonials. Just use your customer database to send them personalised offers and feedback questionnaires.

4 - The Indecisive CEO
This problem customer is a danger to companies that offer a highly customisable product or service. These are clients who just can't make up their mind! They are forever shifting the goal posts on your project. As a result they can become quite a drain on your business. At the end of a project, if they don't like what they receive, they often turn into the bully (mentioned above). Blaming you for all the end product either demanding a refund or for you to fix any problems without any extra payment. One way to deal with these clients is to save all correspondence in your customer database software. In the event of a dispute you can then refer back to the original (or amended) instructions or to your final agreement.

If you have customer database software with time tracking you can also record the amount time/resources spent on the project. Then if the client wants to deal with you again you can determine whether it is profitable enough to take on another project of theirs. Ideally if you identify an indecisive client you should try to bill them on an hourly rate rather than fixed price contract. This way they can change their mind as much as they like without sending you bankrupt. Typically they are less likely to make unnecessary changes when they have to pay for it themselves.

5 - The Cheap Skate
This is someone whose primary concern is price and price alone. The cheap skate will hound you for a better price. If you try to negotiate with this type of customer you will just end up wasting your time and devaluing your product. Negotiating with this type of customer will eat up your time. And honestly this is time that could be better spent elsewhere. Cheap skates are not loyal customers, in fact they will jump ship at even a hint of a better deal. But there is one proven method for turning cheap skates into loyal customers; referral programs. For example if you have a recurring product or service you could offer them 5% off their monthly fee for every new customer who they refer to you. They get your product or service at a lower price and you get new business, it's a win/win! You can also automate this process easily by using a customer database system with a referral program module.

Now you know the problem customer groups to look out for and how to manage them. When faced with bullies, cheap skates and everything in between, with the right systems in place you can turn problem customers into dream clients.


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You can manage problem customers with the right customer database software. For software that is fast, easy to use and free to get started please visit: http://www.picrmsoftware.com.au/