Why would you fire your customers?
Eighty percent of your results come from twenty percent of your clients or customers â€“ as a business coach, I always advise CEOâ€™s to at least fire the bottom twenty percent because theyâ€™re sucking up eighty percent of your time!
Feels odd to be thinking about getting rid of some of your revenues, right? But the fact is that these clients likely generate very little income, and perhaps even cost you money. So why not just get rid of them? No point in keeping a customers that are not really making you any money, especially when you are trying to grow and expand.
Your bottom 20% also take up more of your time and energy too. When cutting the bottom twenty percent of your customers/clients, you can also eliminate some of the waste or overhead you spend supporting them. Doing this will allow you to free up time in all areas of your business – especially shipping, customer service, and accounting. Youâ€™ll also save time in your sales meetings by not talking about these clients.
Fire the bottom twenty percent – clients who take up time, suck up energy or donâ€™t pay their bills on time (or at all). In doing so, you can focus on profitable clients and get more business from new, better ones.
Who would you rather spend time with? Your top 5% or your bottom 20%? Where are you spending that time now?
So, time to start firing! Let me know how it goes!!
I also talk about this tactic in more detail in my book Double Double, Chapter 11 – How to Grow When it’s Slow.
The COO Alliance is here to help with these, and many other, challenges facing COOs today. For more information, and to apply, apply now.