Is it time to get rid of that problem client?
September 19, 2013
Construction accounting software can help you analyze which types of jobs have not been profitable for your company and should no longer be pursued. Another warning sign are customers that are difficult to manage and make it hard for employees to complete their roles. Below are some tips that construction business managers should consider when they are thinking about firing certain clients:
When staff members say their customers are posing problems for them, it's important to look into it instead of brushing the issue aside, according to Inc. magazine. Employees like to know that their boss has their back, and by failing to pay attention to their insights, managers can damage their relationships with their team. In addition, project managers and other customer-facing construction professionals will know more than anyone else when a client is being unreasonable and when executives need to step in before severing relationships with the customer.
Listen to what customers have to say
Arguing with a problem client will only result in more issues. An article for BusinessNewsDaily stated that instead of engaging in a shouting match that just adds more fuel to the fire, managers should create an environment where they can have one-on-one conversations with their customers. Encourage clients to clear the air and talk through concerns. This will make it easier for executives at construction firms to devise a strategy to fix the relationship or make the decision to fire the customer.
Determine if the client is helping the business
Annoying, needy customers that aren't helping companies bring in revenue should be closely monitored, stated Inc. magazine. If these clients aren't doing much good for the company, managers need to ask themselves, "Why do we continue to do business with this enterprise?" If the cons outweigh the pros, then it may be time to make the tough choice to get rid of them. However, it's important to think about how quitting on a client can affect the firm's reputation. Construction companies shouldn't just rid themselves of every tough client. They should be picky and understand when certain clients need to be shown the door.