The History of Factoring From A Trusted Factoring Company
So, you know about how the factoring industry operates today—but where did it all begin? Learn about the history of factoring from the specialists a United Capital Funding. We’re the factoring company you can trust with your capital.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part III
The current COVID-19 crisis is a tragedy that includes many facets; a political one, an economic one and most importantly a human one. It is a story rapidly unfolding without a clear answer. Perhaps the only clear aspect of COVID-19 is that the impact will spare no one, country, industry or location.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part II
As the sun rises today, we awaken to the reality of the financial power COVID-19 has on our financial markets in the United States. Even after a series of unprecedented financial moves by the Federal Reserve to help mitigate some of the financial fallout from the virus, all major stock indices recorded significant losses yesterday. And it appears that, absent some miracle occurring, short term prospects for the markets in the United States are not promising.
An update to our clients on COVID-19
We understand that there is concern surrounding coronavirus disease 2019 (COVID-19). We want to provide a simple update to let you know that our firm’s priority is keeping our employees safe while continuing to deliver high quality service.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part I
As the sun rises today, we are at what appears to be the very early onslaught of the virus in the United States. Having ravaged China and subsequently Italy and Spain, it appears that the United States is next.
4 Ways to Spot a Bad Customer
from Mark Mandula, Chief Marketing Officer
It is said that one of the secrets to running a successful business is to have only great customers and to avoid the bad ones. This makes perfect sense, but is much easier said than done.
So this got me thinking, how can we really spot a “bad” customer out of a crowd? Are there techniques that I can use as a small business owner to do this before I end up with bad apples as a client?
Years ago, I attended a presentation on a similar topic. I found four key ways to spot a bad customer before you make that final sale and I’ve added my thoughts to each point. Additional information on this topic is available, www.userlike.com.
The concept to spot a bad customer is very simple and uses only 4 items to consider. Like getting a report card in school, give a grade ranging from A+ to F to your clients and prospects.
Do not let personal bias cloud your results, focus on facts and not emotion as you embark on this grading exercise. Also consider getting the opinion of those on the front line who may have a more accurate viewpoint of the customer.
- Does your client pay you in full, when due?
- Are they constantly complaining about price or asking for a discount?
- Did you start them out at a price lower than you should have, only to be then be badgered on price?
- After adding up your costs [materials, labor, overhead, financing costs, etc.] is this a profitable client? Which then begs a more important question, do you really know your true cost out the door for your products or services? If not, why not?
- Is there the possibility of additional growth with this client? If so, when will this happen? If not, is there something else you can offer them?
- How do they compare in sales growth to others in their industry versus other clients?
- Public Relations (PR).
- Does this client look good from a PR standpoint on my marketing materials?
- Are they well known?
- Look at their client reviews, what do their customers think of them?
- Is this customer easy or a pain to do deal with?
- Do they want to build a win/win relationship with you or are they combative?
- Do they pay you in full, on time, every time? Or are they feeding you excuses why they can’t?
- If their relationship is project-based, do they constantly change orders or cause delays?
Do this with your entire client list, then rank them best to worst and identify the ones with failing scores. Also, consider looking at your best clients and rewarding them by doing the simple things, like:
- Telling them THANK YOU; who doesn’t like being told they are a VIP?
- Sending them articles relevant to their industry
- Mailing annual anniversary gift cards
- Rewarding them with special pricing and promotions when you can
So what about the ones in the middle? Should you keep them? There is no easy answer to this question.
Perhaps the more profitable approach would be to identify the things you dislike and solicit their feedback on your services. The goal is to work together to identify areas of improvement.
It is difficult to drop a customer. Before you do, make sure you have thoroughly considered the revenue ramifications and created a plan on how to communicate with them. Put yourself in their shoes and provide them adequate notice and options to make the transition smooth. Ex-clients will remember how they are treated when leaving so remain professional through the transition.
In closing, the only thing worse than an indifferent ex-client is one who is hopping mad and attempts to get even by broadcasting their anger to anyone willing to listen. With social media and the omnipresent digital footprint, their bad review could come back to haunt your business for a long time.
We've worked with small to medium-sized businesses since 1997, we've spent over 20 years helping them manage good and bad customers. If you have gaps in your cash flow and are looking for more resources, check out our financial solution.
Article Posted On: September 18, 2019