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Sometimes businesses need to show customers tough love

9/14/2022

27 Comments

 
by Sheri Hart | Sep 14, 2022 | Uncategorized
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​“We love our customers!” Many businesses proclaim this at the bottom of their invoices, in their marketing materials and even on the very walls of their physical locations.
Obviously, every company needs a solid customer or client base to survive. But, to truly thrive, you need to evaluate which customers are reliably contributing to the bottom line and which ones are thinning it out. For those that fall into the latter group, it might be time to show them some tough love.

Tracking the data
Your first step in evaluating customers is calculating, as precisely as possible, how much each one contributes to profitability.

This process will be simple if your sales system tracks individual customer purchases, and your accounting system has good cost accounting or decision support capabilities. Perhaps you have cost data for individual products, but not at the customer level. In this case, you might be able to manually “marry” product-specific purchase history with cost data to determine individual customer value.

Even if you don’t maintain cost data, you can sort the good from the bad by reviewing customer purchase volume and average sale price. Often, such data can be supplemented by general knowledge of the relative profitability of various products. Be sure that sales are net of any returns.

Companies that don’t track individual customers can still analyze customer segments or products. For instance, if the same distributor serves one group of customers, estimate the resources used to support that channel and their associated costs. Or ask individual departments to track employees’ time by customer or product for a specific period.
​
Be sure to include indirect costs. High marketing, handling, service or billing costs for individual customers or segments of customers can significantly affect their profitability even when they buy high-margin products or services. If you use activity-based costing, your company should already have this information.

Sorting them out
After you’ve assigned profitability levels to each customer or segment of customers, sort them into three groups:
  1. An A group that consists of highly profitable customers whose business you’d like to expand,
  2. A B group made up of customers who aren’t extremely profitable but still positively contribute to the bottom line, and
  3. A C group of customers who are undercutting your profitability.
Members of the C group are customers you likely can’t afford to keep. They’re often overly demanding or even abusive to employees. Some expect special treatment that costs you labor hours or actual dollars. Still others are consistently late paying invoices, which slows your cash flow. Whatever the case may be, they’re firmly in the “no longer profitable” category.

Freeing yourself
It might seem counterintuitive to intentionally let go of customers. However, by showing “C-listers” some tough love — and the door — you’ll free up staff time and resources to better serve groups A and B, as well as to win over promising prospects. Contact us for help evaluating your customers from a cost vs. benefit perspective.
© 2022
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27 Comments
back office services link
10/28/2022 01:34:04 am

Segments of customers can significantly affect their profitability even when they buy high-margin products or services. Thank you for taking the time to write a great post!

Reply
DUMFRUES
3/22/2025 12:40:54 pm

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Reply
William McCabe link
2/2/2023 05:15:16 am

Ask individual departments to track employees’ time by customer or product for a specific period. I truly appreciate your great post!

Reply
self service payroll portal link
7/4/2023 06:02:11 pm

I have not enough words to compliment your great artwork. That’s how wonderful it is. You have condensed your argument so that it is easy for everyone to understand. Thank you!! PCS Prostaff can perform administrative support functions so you can channel your resources and personnel on core aspects of the business. Effective administrative support makes a significant impact on an organization as well as overall morale of your employees.

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safety services company link
7/5/2023 02:14:09 pm

I have not enough words to compliment your great artwork. That’s how wonderful it is. You have condensed your argument so that it is easy for everyone to understand. Thank you!! At PCS Safety, Inc., our Injury and Illness Prevention Plan Kit will help you prepare and meet the legal requirements. The first step is conducting the OSHA Inspections & Citation Representation, Citation & Appeals. An Injury and Illness Prevention Program, (IIPP) is a basic safety program tailored to business operations. Call us today at (866) 413-4103!

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brick masonry Mesquite link
1/28/2024 02:48:26 am

Identifying and prioritizing customers based on profitability is a smart business strategy. It allows companies to focus resources where they truly matter.

Reply
SBA Loan Calculator link
5/16/2024 02:41:08 pm

Good information provided. Even as a business owner, you are also a consumer of other business services

Reply
Hailey Garcia
6/9/2024 06:58:52 pm

My name is Hailey Garcia and I am from New Jersey. My herpes virus turned to war after 2 years of living with it. I have tried different medical procedures to cure my herpes but to no avail. Most people think herpes is only a minor skin irritation of which herpes has long term effects on health and passes through the bloodstream and can be easily contracted through sexual intercourse. I knew I had herpes from the first day I started feeling itchy in my pubic area and the pain was very unbearable. I couldn't stand it anymore. After 2 years of trying other means to get rid of it, I had to contact Doctor Odunga to help me with a permanent cure. I saw his email and whats-app number from a testimony I read online from a lady who was also helped by him in curing infertility problems, I had faith and contacted him. He assured me of his work and I ordered his herbal medicine. Within 5 days, I didn't feel any pain anymore and within 2 weeks, my skin was all cleared and smooth. I am very grateful to you sir and I write this testimony as others have done to bring those having faith to you sir. If you have herpes or other similar disease and you want it cured, kindly contact Doctor Odunga, Whats-App (wa.me/+2348167159012) OR Email [email protected]


🛑 PERMANENT SOLUTION FOR TREATMENT, CURE & PREVENTION OF THE FOLLOWING :❗❗

🛑Kidney Failures
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🛑Cancer
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🛑HIV

Reply
nels kate
6/12/2024 10:04:53 pm

I have been suffering from Herpes for the past 1 years and 8 months, and ever since then i have been taking series of treatment but there was no improvement until i came across testimonies of Dr. UMA on how he has been curing different people from different diseases all over the world, then i contacted him as well. After our conversation he sent me the medicine which i  took according .to his instructions. When i was done taking the herbal medicine i went for a medical checkup and to my greatest surprise i was cured from Herpes. My heart is so filled with joy. If you are suffering from Herpes or any other disease you can contact Dr. UMA today on this Email address: [email protected] or whatsapp +2347035619585.

Reply
Ariana link
6/22/2024 12:38:38 am

I read on the internet about a traditional herbal man who cures herpes virus with herbal medicine and I had my doubts and was skeptical but unlike many I decided to place my destiny in my own hands by going further to contact and follow his instructions. This is the words of someone who has felt the pains of being infected and affected with genital Herpes virus and finally got cured after drinking a natural herbal medicine from dr excel the herbalist after being diagnosed for 4years. I am a witness today that herbal medication can cure genital herpes because I have just test negative for the second time and all the symptoms were totally gone. you should contact Doctor Excel by visiting his website Excelherbalcure.com or call me directly on him phone +1 509 883 9893

Reply
Luna Brian
6/26/2024 07:06:26 pm

HOW I WAS CURED FROM HERPES VIRUS

I am writing this testimonial with immense gratitude and a renewed sense of hope in my heart. For years, I battled with the physical and emotional torment caused by the herpes virus. It felt like an unending struggle, until I discovered a remarkable solution that changed my life forever.

Like many others, I had tried countless remedies, medications and therapies in search of a cure. I had lost hope, resigned to the belief that herpes was something I would have to live with indefinitely. However, fate intervened and led me to a breakthrough that altered the course of my life.

Upon stumbling upon a revolutionary treatment option, my skepticism slowly transformed into a flicker of hope. The treatment was a natural remedy from Dr Awase [ HERBS ]

Over time, as I followed the treatment diligently, I started noticing positive changes and I experienced a boost in my overall well-being. I am ecstatic to share that I am now herpes-free confirmed by my Dr after a test was done. The treatment I received was nothing short of miraculous and I couldn't be more grateful. I have regained my self-confidence and the burden that once weighed heavily upon me has been lifted. I was cured of my herpes virus through natural medication.

If you, like me, have been struggling with herpes and searching for a way out, please know that hope exists. May my story inspire hope in the hearts of those who need it. He also specializes in getting rid of HPV, OVARIAN CYST, PCOS, HEPATITIS and a lot more.

Contact on WhatsApp +2349074997110

Email:- dr.awaseherbalhome@gmail. com

Reply
frances tony
7/1/2024 10:46:56 pm

I thought the physicians says there is no cure for HSV 2!!! I am telling you today that DR.UMA cure HSV 2 with his herbal medicine and once you get cured you are cured forever it is never reversible, I have been suffering for this deadly disease called h HSV 2 for more than a 2years and lost all hope because my doctor says there is no cure for HSV 2. Brethren I saw a testimony on the internet on how DR.UMA cure HSV, Hapatitis etc with his herbal medication and an email and watsapp to contact him was also displayed, I thought this was joke but I decided to contact him and he replied telling me not to worry that my problem is over . DR.UMA sent me a herbal medication to drink for one month but only 2weeks I feel strange and I went to my doctor and he confirmed me negative. He can help you too. Contact him via [email protected] WhatsApp +2347035619585. He is capable of curing AUTISM, HERPES, HPV, HSV1&2, HEPATITIS A B C, and DIABETES.

Reply
william wirtz
8/1/2024 08:32:29 pm

I recommend you to get your herbal medicine through Herbal Miracle Medicine . He cured me from my herpes outbreak and now I am free . All thanks for your care and giving me my life back . If you are suffering from any illness you can get your medication from Doc Moses Buba on his .
email him on ( [email protected] )
Facebook page: https://www.facebook.com/profile.php?id=61559577240930
website:https://bubaherbalmiraclem.wixsite.com/website

Reply
Manuel
10/24/2024 10:15:35 am


I promised Great Odunga to always post his testimony and I really want to say "Thank You" to everyone who supported me through the years. My name is Manuel Franco, New Berlin, Wisconsin. My story of how I won the Powerball lottery of $768.4M is a bit of a tale. I was feeling very lucky that day because I had contacted Great Odunga to help me with the winning Powerball numbers. I really had that great great feeling that I looked at the camera wanting to wink at it. I only did a tiny part of it when he told me he would give me the numbers and trusted him. He gave me the numbers after I played a couple other tickets along with it for $10. I checked my ticket after the winnings came online and saw the numbers were correct including the Power play. I screamed for about 10 minutes because it felt like a dream coming into reality. I had won $768.4M. Thank you Great Odunga. Well, his email is [email protected] and [email protected] You can also call or Whats-app him at +2348167159012 so you guys can contact him


HE CAN ALSO FIX THE FOLLOWING PROBLEMS. RELIABLE AND TRUSTED

Lottery Spell
Love/Reunion Spell
Pregnancy Spell
Protection Spell
Marriage spell
Healing/Cure spell


Contact him for any of these today:
EMAIL: [email protected] OR [email protected] also Call and WHATS-APP HIM +2348167159012.

Reply
Sidney De Queiroz Pedrosa link
10/24/2024 12:08:29 pm

Great insights shared here! While it may seem harsh, setting boundaries and expectations can foster better relationships with customers. It ultimately leads to growth and trust, showing that businesses genuinely care about their customers' success.

Reply
Beatriz Barata link
10/26/2024 10:19:05 am

Thanks for sharing! Tough love can be essential for businesses aiming to foster genuine growth and improvement. By setting clear boundaries and honest expectations, companies can encourage customers to engage more thoughtfully.

Reply
Amelia Jonathan
11/10/2024 11:51:05 pm



My name is Amelia Jonathan from the United States, Using this opportunity to thank Dr. Ughulu is a grateful thing to me, for over years I have been sick with Hepatitis B disease, I have done a lot of things to get cured of my diseases and nothing has worked out. I have taken different types of medication for it , but it still doesn’t work for me. I still keep going for a check up so that the doctor will tell me my disease has be gone, because i’m taking my medicine with no result nothing has been cured, I have spent a lot of money just to get cure of Hepatitis B. until my old time friend came to my place and saw what am going through, and then direct me to contact Dr. Ughulu who is a very powerful man, which I did explain my problem to Dr. Ughulu and send me a herbal remedy bottle and explain to me how I should drink it. So I started to drink the herbal tea in one week that I drink the herbal tea. I went for a check up to check if I’m cured from Hepatitis B disease, then the nurse told me nothing is wrong with me anymore and said I’m fine. I am the happiest person right now. I promise Dr Ughulu I will testify about his good work on the internet. Reach out to Dr. Ughulu Via: [email protected] Thank you so much sir for what you did for me you’re the best of all. TEXT OR CALL: +1(252) 409-1841 or website: https://drughulupowerfulsp.wixsite.com/my-site-ughulu

Reply
Sarah Vaughn
11/25/2024 02:07:02 pm

Mrs Debo herbal medicine is a good remedy for Herpes, I was a carrier of Herpes and I saw a testimony on how Dr. Debo cured Herpes, I decided to contact him and he guided me. I asked her for solutions and he started the remedies for my health. Doctor Debo natural herbal medicine is 100% guaranteed sure and safe with zero side effects. Thank God, now everything is fine, I'm cured by Dr. Debo herbal medicine, I'm very thankful to Dr. Debo, because he is the best online natural herbal doctor to eradicate your viral infections or diseases, reach her on  [email protected] call or WhatsApp her on +2348101793937

Doctor Debo can also cure the following:
CANCER ALL KINDS
LUNGS AND LIVERDISEASES
HIV
FIBRIOD
PENIS ENLARGEMENT
DIABETES
SYPHILIS
ERECTILE DYSFUNCTION
INFERTILITY IN MEN
INFERTILITY IN WOMEN
HUMAN PAPILLOMAVIRUS (HPV)
GENITAL WARTS
HERPES ALL KINDS
PREGNANCY ISSUES
PREMATURE EJACULATION
LOW SPERM COUNT
WEIGHT LOSS
STAPHYLOCOCCUS
DEMENTIA
HAIR LOSS
ARTHRITIS 
EPILEPSY 
COLD SORE

Reply
Merv Rating link
12/26/2024 01:07:30 am

Tough love in business can help set clear boundaries and expectations for customers. It’s all about maintaining a healthy relationship and ensuring mutual respect!

Reply
Solar Panel Cleaning link
1/1/2025 11:14:59 am

Great post! It's true that sometimes businesses need to show tough love to their customers. Setting clear boundaries, offering honest feedback, and holding customers accountable can build stronger relationships and long-term loyalty. It’s all about balancing empathy with firmness for the best outcomes.

Reply
Violet Holt
3/2/2025 04:31:30 pm

Find a natural alternative method to reverse different diseases and STDs no matter what hospital's says about these illness. I am sharing my healing encounter from genital herpes after using WORLD REHABILITATE CLINIC Formula to cure my HSV-1&2 diagnosis permanently. A few weeks ago my new lab result shows that I tested negative. I am so happy I did gave it a try. Currently, my 65 years old mom is using " herbs" to eliminate her diabetes and the recovery process is amazing. I am recommending this product for those that are willing to give it a try as these holistic remedies do not have any side effects. It’s also crucial to learn as much as you can about your diagnosis. Seek options check out: ( worldrehabilitateclinic. com )

Reply
DBM Janitorial Services link
3/10/2025 01:02:25 am

Evaluating customer profitability is a crucial step in business success, just as maintaining a clean and organized environment is essential for productivity and client retention. At DBM Janitorial Services, we help businesses in Plano, TX create professional, welcoming spaces that support growth and efficiency.

Our janitorial services in Plano, TX ensure that companies can focus on their most valuable clients without worrying about workplace cleanliness. Whether it’s commercial cleaning for high-traffic areas, office cleaning for corporate environments, or specialized business services, we provide tailored solutions that keep businesses operating at their best.

Letting go of unprofitable customers allows businesses to allocate resources more effectively. Similarly, outsourcing professional cleaning ensures teams remain focused on core operations while maintaining a polished image that attracts high-value clients.

For companies looking to enhance their workspace with top-quality janitorial services in Plano, TX, DBM Janitorial Services is here to help. A clean and well-maintained environment isn’t just an investment in your office—it’s an investment in your business’s future.

Reply
Marcus
3/24/2025 04:19:07 am

Since I was a child, I've envisioned owning an electric truck, but I never imagined my dream would become a reality. Currently, I possess a Cybertruck from Tesla, a feat made possible by Lord Meduza, the spell caster who created a lottery spell that secured my MEGA MILLION winning ticket of $156,000,000 million dollars. Currently, my family and I are completely debt-free and we enjoy life like celebrities, haha. Allow Lord Meduza to revive your forgotten dreams in 48 hours, as this is the sole method to succeed in winning the lottery. His fortunate numbers are not anticipated but fated for greatness. His spells include various types, such as healing from illnesses or ailments, seeking employment, or attempting to rekindle a relationship with an ex. Simply get in touch with him via the below details and God Bless.
Email: [email protected]
Whats-App: +18079072687.

Reply
Michael Wade link
3/24/2025 12:53:49 pm

Tough love in business sets clear expectations. It’s about honesty, fairness, and maintaining standards. Customers may not like it at first, but they’ll appreciate it in the long run.

Reply
Sell Your House link
4/1/2025 02:56:23 am

This article is so relevant! We often hesitate to let go of difficult customers, but your points make it clear why it’s sometimes necessary.

Reply
Mike
4/3/2025 12:05:43 pm

Using natural roots and herbs 🌿 supplements is the best and it’s safe Curing and eliminating HSV 1 & 2 so don’t lose hope, order your herbs from Dr.Ogudugu on YouTube channel today...contact his email [email protected] or contact him on WhatsApp +2348163026536

Reply
Wendy Gunn
4/5/2025 11:46:36 am

LORD MEDUZA IS THE BEST SPELL CASTER ONLINE

It's an honor to share my testimony with the world. You merit all the accolades that mention you. Lord Meduza has been a gift to me since our meeting online. He is the only one that knows everything about creating spells. I adore him immensely for his kindness, compassion, integrity, and the support he offers to everyone who interacts with him. Without Lord Meduza, I wouldn’t have survived this difficult situation. His magic turned me into a Lottery winner of £177 Million Pounds, transforming my entire life into something beautiful and extraordinary. The numbers he provided for the lottery were transformative, elevating me from grass to grace, and I want to express my eternal gratitude to him. Thank you, sir, for being a source of help to those in need. Anyone who reads this article and requires assistance can reach him through his Email: [email protected] or WhatsApp: +18079072687 as he is unmatched in crafting spells.

Reply



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