April 2011

Q: How much of my company’s resources should be devoted to a difficult but valuable customer? The following answers are provided by the Y.E.C. Mentors . Co-Founded by Donna Fenn and Scott Gerber , Y.E.C. Mentors is an initiative of the Young Entrepreneur Council , a nonprofit organization that provides young entrepreneurs with access to tools, mentorship, community and educational resources that support each stage of their business’s development and growth. Y.E.C. Mentors’ members are successful executives, serial entrepreneurs and thought leaders. A: Are They Really Worth It? This is a great question — especially critical for startups as you are looking to establish and grown your business. You should focus on the lifetime potential value of the customer — are they a customer for “now” with not much potential in the future or is there a lot of potential for growth in the future? Weigh the economic value of the particular customer. –Leonard Schlesinger ( @lschlesinger ), Babson College A: Trust Your Gut If you are transparent about your product and services and offer a Customer Service phone number or electronic means of transparency like a Blog, then consumers will typically not remain difficult. Due to social media and the viral effect of negative crisis to erupt, companies and CEOs are closely monitoring their customers’ feedback on Twitter or Blogs. –Naveen Jain ( @Naveen_Jain_CEO ), Intelius A: Determine the Customer’s True Worth We are in business to serve our customers. That said, some customers are more difficult than others and demand a lot of time and resources to service them. Business should also be fun! (We work hard enough as it is). If they make you miserable- the answer is easy- time to end it. Its not worth being miserable to service a client- might as well work for someone else if you do that. –Ingrid Vanderveldt ( @ontheroadwithiv ), Ingrid Vanderveldt LLC A: Do the Drain Test Companies need to be crystal clear about the profile of customers who align with their strategy, culture and resources. “Difficult” customers can range from an ill-mannered executive to an account that always needs extra hand-holding and support. Prune non-ideal customers relentlessly. Over time, they drain the life force out of your organization, and stop you from finding more ideal fits. –Pamela Slim ( @pamslim ), Escape from Cubicle Nation A: Minimize Contact With Your Staff