https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-logo.png
Banking Technology
    • Newsletter
  • Home
  • Technologies
    • Back
    • Analytics
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
  • Intelligence
    • Back
    • Content Resources
    • From the Industry
    • Galleries
    • Our Sponsors
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • Think Tank
  • Awards
    • Back
    • Circle of Excellence
    • Digi Awards
    • MSP 501 Rankings
    • Talkin’ Cloud 100
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
  • More
    • Back
    • About Us
    • Advertise on Channel Futures
    • Contact Us
    • Editorial Calendar
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
  • Home
  • Technologies
    • Back
    • Analytics
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
  • Intelligence
    • Back
    • Content Resources
    • From the Industry
    • Galleries
    • Our Sponsors
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • Think Tank
  • Awards
    • Back
    • Circle of Excellence
    • Digi Awards
    • MSP 501 Rankings
    • Talkin’ Cloud 100
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
  • More
    • Back
    • About Us
    • Advertise on Channel Futures
    • Contact Us
    • Editorial Calendar
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Sales & Marketing


Can You Fire Your Worst Customers?

  • Written by Joe Panettieri 1
  • July 30, 2008

During a tight economy, it’s sometimes difficult for you to turn down a questionable business engagement — even if you know the customer is going to be a nightmare, and the margins aren’t going to be so great.

But MSP University CIO Erick Simpson offers some solid advice on how to  transform your business, so that you can focus on fewer, higher-paying customers. Take a look.

According to Simpson, you need to “squeeze” your customer pyramid as part of a long-term strategy. I think Erick is onto something. Check out his complete blog entry, highlighting how he transformed his own customer base in recent years. His lowest-paying, least desirable customers are no longer part of his business.

Erick didn’t achieve this transformation overnight. It was part of a long-term plan. Now, during the economic slowdown, Erick isn’t scrambling to “say yes” to customers he doesn’t want. Instead, he has a base of customers who truly trust him.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Best Practices Sales & Marketing

Related


  • Network Monitoring
    Barracuda Beefs Up MSP Security Offer with Avast Acquisition
    Barracuda has doubled its international MSP partner base during the past two years.
  • Cloud Desktop
    Nvidia GPU-Powered Workstation Service Released in Microsoft Azure Marketplace
    By offering Quadro vWS, customers can spin up their own instances as needed.
  • Information Security
    A Business Owner’s Guide to Cybersecurity
    During a tight economy, it’s sometimes difficult for you to turn down a questionable business engagement — even if you know the customer is going to be a nightmare, and the margins aren’t going to be so great. But MSP University CIO Erick Simpson offers some solid advice on how to  transform your business, so […]
  • Increasing Graph, growth
    Amazon, Microsoft See Sharp Revenue Gains in Cloud
    AWS revenue jumped 45 percent while Microsoft Azure's business grew 76 percent.

One comment

  1. Lane Smith July 30, 2008 @ 4:38 pm
    Reply

    I agree with Erick, you can and absolutely move your customers up to the top of the pyramid. As you grow your business you tend to be more selective with new customers, tighten your SLA and as such increase your profitability.

    So the question of what to do with these customers becomes more and more relevant as you grow. One concept would be to just fire them. Unfortunately, this will generally end up with a company that is not very happy with you and could potentially have a negative impact when prospecting.

    A couple alternatives to this would be to go back to these customers with a plan that will move them up the the “B” level customer in regards to profitability. This will work with maybe 1/3 of them, but what about the others?

    Perhaps you know of another MSP in your area that is at an earlier stage than you and might consider these customers “A” customers? If you can find somone that you are comfortable with then I would suggest working with them on a program to “transfer” these customers to them.

    This can be a win-win-win for all three companies. You have increased your profits as you have “fired” your “C” customers, the customer does not loose support completely, rather they are introduced to a company that is very happy to work with them and the other MSP has just been handed a new customer list with a minimal sales cycle.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • What the Next Generation of WiFi Means for MSPs and Their Clients
  • Scale Venture Partners Report: Execs' Security Confidence May Be Misplaced
  • Scale Computing Grows MSP Program to Challenge Nutanix, Pivot3
  • Lastline Signs Distribution Agreement With Synnex

From the Industry


Sponsor Content

10 Ways MSPs and MSSPs Can Deliver Managed Detection and Response Services

February 21, 2019
Sponsor Content

Email Security: A Smart Addition to Any MSP’s Layered Security Strategy

February 20, 2019
Sponsor Content

Grow Your Business by Reducing Complexity for SMB Customers

February 20, 2019
view all

Galleries


Check Point CPX360 Featuring VMware, Versa Networks

February 8, 2019
view all

Webinars


Sponsor Content

Social media and email phishing: How to protect financial information from fraudsters

February 19, 2019
Sponsor Content

Double Your Revenue with Backup and DRaaS

February 12, 2019
view all

White Papers


Sponsor Content

A Business Owner’s Guide to Cybersecurity

February 6, 2019
Sponsor Content

The Seven Types of Power Problems

February 6, 2019
Sponsor Content

The Lean MSP

January 29, 2019
view all

Videos


Sponsor Content

Video: Ivanti Unified IT: Automate Service Requests

January 14, 2019
Sponsor Content

Linksys Cloud Manager Tutorial – Dashboard Overview

January 13, 2019
Sponsor Content

Linksys Cloud Manager Tutorial – How to Set Up a Network, Access Points, and SSID

January 13, 2019
view all

Twitter


ChannelFutures

Can PQC be used to create encryption that defeats the cracking power of quantum computers? goo.gl/fb/kLphnT

February 22, 2019
ChannelFutures

@Arcserve unveils new disaster recovery capabilities for #SMBs through virtual machines on the #cloud goo.gl/fb/W2vSn6

February 21, 2019
ChannelFutures

.@Lastlineinc signs first #distribution agreement in NA with #Synnex. goo.gl/fb/fxXAAz

February 21, 2019
ChannelFutures

@HarmonyPSA hopes to build on 2018 growth and cement its place in the crowded #MSP mgmt software space @MSP_501 goo.gl/fb/16XbRG

February 21, 2019
ChannelFutures

@googlecloud #CSP lets enterprise run cloud workloads on-premises #hybridcloud @awscloud @Azure goo.gl/fb/bjze9r

February 21, 2019
ChannelFutures

.@HP rolls out updates to its #Device as a Service (DaaS) program. goo.gl/fb/HxxCNQ

February 21, 2019
ChannelFutures

CMIT Solutions of the Outer Banks (CMIT of OBX) goo.gl/fb/YGs885

February 21, 2019
ChannelFutures

Latest #SecurityRoundup features @ThreatConnect @solarwinds @FollowContinuum and @365datacenters. goo.gl/fb/6AQoqm

February 21, 2019

MSSP Insider

Newsletters and Updates

Sign up for the Doyle Report, Channel Futures Update, MSP 501 Update and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

Channel Futures

© Channel Futures 2019. All rights reserved.

  • About Us
  • Contact Us

Related Links

  • Privacy Policy
  • Terms of Service

Follow us

Websites are now required by law to gain your consent before applying cookies. We use cookies to improve your browsing experience. Parts of the website may not work as expected without them. By closing or ignoring this message, you are consenting to our use of cookies.
X