Filtering Out Unreasonable Customers

The best way of dealing with an unreasonable customer is to never work with them in the first place.

I wrote about dealing with a "nightmare" customer a while back. It was one of the more popular posts of 2023.

But today, I want to focus on how to avoid a nightmare customer. Ah, yes, that's a better idea, isn't it!

Like so many things, it all starts with culture...

Many organizations are set up where the person securing the customer (sales) does not necessarily have to deal with the customer (management). While separating these very different skill sets makes sense, the danger is that the sales team sells without considering the impact "down the line."

The first step in avoiding a nightmare customer is empowering sales to cut them off at the pass. This requires the support of sales management when sales think it's time to pull the plug.

The caveat here: is sales avoiding this customer because it's a challenging sale to make? Or is it a legitimate concern? This must be fleshed out.

Once your culture is set, here are some principles to avoid the nightmare customer:

Principle 1: It All Starts with a Conversation

When a stranger knocks on the front door of your home, you open it slightly and ask a few questions, do you not?

Imagine if you just left your front door open 24/7. You might end up with people in your home you didn't expect at best and who might be harmful at worst.

The early stages of your sales cycle are similar. While automating the early phases of your sales cycle is nice (and imperative for some products/services), losing out on an upfront conversation will certainly let more crazies through the door.

Begin with a conversation focusing on the customer's needs. This will often reveal folks who are unreasonable, unsavory, or unresponsive. The three "U"s you want to avoid!

Principle 2: Install a Few Hurdles

Installing customer "hurdles" is 180 degrees different from what you've been told all your business life. But consider hurdles a filtration device.

Great customers are willing to work within the business systems you've built because they trust those systems will deliver the best results.

Nightmare customers are all about themselves and want the system tailored to them. Often, the modifications they request prevent them from receiving outstanding results. And when this happens, do you think they raise their hands and say, "Whoops, my fault! I messed with the system!" Nope, they blame you.

One way to "test" a customer in this regard is to install a few "hurdles" in your sales cycle that require them to follow your process.

For example, at kitchen & bath CRATE, every customer journey starts with a 10-15 minute call with a team member. These calls take place Monday through Friday, 7:30 - 5:30. If a customer won't do this ("Can't you just send someone out?!?!), it's a sign they're unwilling to work within our system. And this system has produced more than 1,500 custom remodels since 2012. It works. If a customer won't let us use our system, we can't deliver the results they're looking for.

Principle 3: Trust Your Gut

This one is pretty simple: if you're getting a niggle about a customer at any point along the sales journey, you're right.

Much like a relationship's dating and engagement phase, both parties are "on their best behavior" during the sales phase.

If issues and red flags pop up early on, it will only worsen.

Over at kitchen & bath CRATE, we have a rating system for each customer. A high rating means "this person is perfectly aligned with our ideal customer type, and we really want to work with them!" A low rating means we'd prefer never to interact with this person again. Should a rating fall below a certain threshold at any point along the sales journey, the team discusses 1) if the project should continue and 2) if not, how best to sever the relationship.

Principle 4: Investigate Past Relationships

When selecting a company to work with, customers put a lot of emphasis on past customer reviews. And they should; a company's track record with past customers shows how they'll perform in the future.

And the same is true when evaluating potential clients.

Throughout the sales process, pay close attention to how the customer describes their past relationships with those who provide the same services you are considering providing.

Was every past relationship/project a "mess." Do they only have negative things to say about those they've worked with? Do their past "issues" seem a bit unreasonable?

Be leery of the person who can't be satisfied. And they're out there. Believe me. If a customer has a track record of never being satisfied, don't fool yourself into thinking you'll be the first.

At the end of the day, it's our job as managers and leaders to weed out toxic clients. We owe it to our teams and ourselves. I hope you'll consider these principles and are willing to have the tough conversations should a customer need to be "fired."

PS: Did a nightmare customer make it through your filtration process? If so, here are five strategies for dealing with them.

Thanks for reading this post. I appreciate you. In return, please share this with those you know who may be interested.

Books of Note: I spent much of 2024 pruning back in life. (This newsletter was a temporary casualty.) During this time, I also focused some of my reading on thoughtful books about focus, slowing down, and going deeper into meaningful pursuits. One such helpful book was Cal Newport's Slow Productivity. His vignettes of how some of history's most profound, prolific "thinkers" played the "long game" were inspirational and helpful. Highly recommend.