Hitting the Wall Is talking to certain prospects like talking to a brick wall? It may be time to cut your losses and walk.
By Barry Farber
Opinions expressed by Entrepreneur contributors are their own.
The customer is always right. We've heard that as a basicbusiness truth since the beginning of business. And for the mostpart, it's true. But there are times when it's appropriateto tell a particular buyer-the one who saps your strength andwastes your time again and again-that although the customer may beright, the relationship is wrong.
I'm not saying get rid of every customer who is difficult todeal with. I'm suggesting that it may be time to weed out yourcustomer base so you can harvest the greatest rewards. Here aresome ways to do that:
1. Know when to walkaway. Persistence in selling should add value. But ifyou've tried again and again to reach a prospect who justdoesn't understand your product or service, who doesn't seeits value, or with whom you can't establish a connection, itmay be time to walk away. If you're being stubbornly persistentdown a path that leads nowhere, that's counterproductive. Youwant to spend your time where you're getting results.
2. Follow the 80/20rule. Take stock of your customers. Which ones give you themost business? Which give you the most headaches? How much time areyou spending with each? Eighty percent of your business comes from20 percent of your customers, so focus on those customers that havethe highest potential to increase your bottom line.
3. Ask the difficultquestions. Too many salespeople are "stuck" withproblem customers because they don't ask the hard questions.They get sucked into a long, drawn-out sales process because theyhave never asked, "Is there anyone else besides yourself whois involved in making this decision?" They spend a lot of timewith an indecisive customer because they haven't asked,"What's our next step?" or "What do we need todo to get a decision by the end of this month?" They'reafraid of rejection and objections. But getting an objection isoften the only way to truly understand how the customer is thinkingand get the sale back on track-or to realize that this track is notthe right one for you or your customer to follow.
4. Measure yourreturn on investment. How do you know when it's time toend the relationship? First, you have to know what your value is.You have to have the confidence and belief in yourself and yourproduct or service to be able to say, "I can spend this amountof time with this customer and no more. I can sell my product orservice for this price and no less." Next, do a thorough andhonest ROI analysis. How many times have you called on thiscustomer without moving the sale forward? Is the time you'reputting into this account worth what you're getting back?
5. Leave the dooropen. Never lock the door behind you when you go.There's no point in telling a customer, "You're notworth my time." Say instead, "I appreciate the timeyou've invested with me, but it doesn't look like this is agood match for us." You might even recommend another productor service you think is a better fit for their needs. Try to walkaway on friendly terms so that both of you have the option to callagain should the situation change.
The next time you deal with a difficult customer, ask yourselfthis question: "Is the time I'm spending with thiscustomer taking time away from others who need me more?" Ifthe answer is "yes," then it's time to cut yourlosses and walk away. So the next time your first thought is"The customer is always right," stop and ask yourselfthis instead: Is this customer right for me?
