When (and How) to ‘Fire’ a Customer
Problem clients aren't worth their contract
Finding a new customer is 5%-225% more expensive than keeping an existing one, according to marketing experts. For pool service providers, especially those operating on slim margins, that’s a strong incentive to keep current clients around.
Troublesome ones, however, may not be worth their contract. When the cost — financially, operationally and emotionally — outweighs the value of keeping them, it’s time to sever the relationship. “Knowing when it’s time to fire a difficult client isn’t always easy, but it’s essential for protecting your team, your business and your sanity,” says Kelly Collins, operations manager for Code 3 Pool Service in Inverness, Florida.
Problem customers make themselves known in several ways, often due to payment issues. It’s one thing if a customer needs an occasional extension, but those who dispute every invoice may warrant termination, says Tracy Bond, president and owner of Great Valley Pool Service in Frazer, Pennsylvania.
Customers who mistreat employees or consistently cause delays or additional work are also candidates. Pool companies have no shortage of horror stories: customers swearing at or physically threatening team members, dog bites, pet waste and trash around the pool — and the occasional wild card.
“We had an HOA community where a resident was dumping a pile of dirt in three different areas in the pool every night to make sure we were vacuuming the pool daily,” says Anita Minervino, president of Coastal Pure in North Myrtle Beach, South Carolina. “The board of directors was unwilling to look at their cameras to find out who [the culprit] was, and I said, ‘Fine. Find another pool operator.’ They didn’t believe we’d quit, but we did.”
Early red flags
Problematic clients often reveal themselves early, sometimes during the initial schedule discussion. Some insist on service on a specific date and time, usually when they’ll be home. But as is typical in the industry, new customers need to fit into a pool company’s routes to minimize travel time and fuel costs. “We explain [at the time] that they don’t need to be home if their backyard is accessible,” Bond says. Annoyed customers who sign on but don’t get their ideal time can later create issues with locked gates and delayed entries, she says.
Collins says another red flag is customers who ask for favors or free extras, sometimes during the initial quote. “They expect our company to adjust valves or to clean filters without scheduling it as a paid service,” she says.
To determine when clients won’t be a good long-term fit, Collins advises paying attention to early warning signs and placing these clients on a watch list.
Confused or difficult?
It’s important to distinguish between confused and difficult customers. Confused customers ask questions, want to learn and respond well to clear explanations, Collins says, but difficult customers push back, despite hiring a professional, and resist guidance.
Bond agrees and says some clients are unwilling to accept advice about how to properly maintain their pools. “It creates problems they blame us for, when it’s really them not listening to the advice we gave,” she explains.
Others treat every issue as an emergency and expect the service provider to make an immediate visit, Bond says. “Our schedules are finalized a day in advance, so we can’t easily accommodate last-minute requests,” she adds.
Confused vs. Difficult: Know the Difference
Clear communication and firm boundaries
Proactive communication often prevents small issues from escalating into larger ones. For example, Great Valley Pool Service confirms expectations before each visit. “We send out confirmation emails, texts and phone calls the day before service,” Bond says.
That communication also includes pricing and billing structure, so clients are told in advance that service calls and diagnostic work carry a cost. “We can’t tell them exactly how long we’ll be there, so we’ll say our quarterly rate is XX dollars per 15 minutes.” This approach has significantly reduced payment disputes, she says.
Once expectations are set, enforcing boundaries becomes a matter of documentation. “We use Skimmer for logging visits, taking photos and storing signed quotes that clearly outline our scope of work and policies,” Collins says. “We make sure customers understand and keep a copy.”
Like Code 3, Great Valley relies on visual documentation. “Our technicians take pictures of everything,” Bond says. “We take photos when they arrive and when they leave, so we know how long they’ve been on the job, as well as the work that was done, the status of the pool before we got there and the status when we left.”
Internal decision-making
Terminating a contract depends on several factors, including feedback from the office staff and technicians in the field who deal with customers face-to-face.
While pool operators try to resolve recurring issues whenever possible, they also listen to and support their teams. “If they don’t feel comfortable going there, I’m not going to force them to go into a situation that’s going to put them in harm’s way,” Bond says. “I’m very willing to support them when they have recommendations for customers who are problematic.” This also builds team morale, she adds.
So does empowerment. Code 3 gives its techs permission to walk away from verbally abusive clients, situations that — thankfully, Collins says — rarely happen.
Communicating the separation
When repeated customer problems strain your staff and your business, it’s time to protect both and end their service, Collins says. The most effective approach is written communication (typically by email) that is professional, respectful and reflects well on the company. The message shouldn’t detail specific incidents (dogs, gates, abuse, etc.). Instead, Bond says, it’s as simple as: “Unfortunately, we can’t meet your expectations, and it might be best for you to pursue another service company that can better meet your goals.”
While severing ties may mean renewed marketing efforts to replace the client, Minervino of Coastal Pure sees it as a necessary trade-off. “I have a wonderful crew, and it’s more important for me to keep them working and happy than to put up with an antagonistic account,” she says.
