Knowing your good and not so good clients

Author: Debbie Richardson | Co-Founder | Head of Programs & Partnerships | MSQ |

Co-Founder/Head of Programs & Partnerships

In today’s business environment, it’s essential to recognise the value of data when selecting the right clients. Many businesses find themselves working with clients that don’t align with their goals, leading to wasted resources and unproductive relationships; they drain the energy of the business.

By using data effectively, companies can identify which clients bring value and which ones should be phased out. Saying that it’s not only about data it’s about how they behaviour – we recently worked with a client who decided to part ways with customers because they disrespected their team members.

A good place to start is by reviewing client performance through key metrics such as profitability, engagement, how much products/services they buy and the cost of servicing each client. Analysing this data allows businesses to see the value of each client relationship.

Low-profit clients or those that demand excessive attention without the good returns can drain your resources. Similarly, reviewing historical data on customer behaviour can uncover trends that signal clients who are consistently problematic or who aren’t committed to long-term growth.

A well-run CRM (Customer Relationship Management) system is crucial in managing this data effectively. A CRM allows businesses to track interactions, store relevant customer information, and assess client health over time. It becomes easier to categorise clients into segments—such as high-value clients, potential growth clients, or clients that consistently underperform.

With these insights, businesses can make informed decisions about whether to invest in a client’s growth or begin a process of disengagement.

Selecting clients who align with your strategic goals is vital to maintaining a successful business. By relying on data and maintaining a robust CRM system, businesses can ensure that they are focusing on the clients who provide value, while saying goodbye to those who hinder growth. This leads to more efficient resource allocation, improved profitability, and stronger, mutually beneficial relationships with clients.

If you’d like to understand how to start moving those not so good clients on please reachout.