Hello Reader,

Did you spot if you had Happy Ears Syndrome? Here is a link to last week’s email if you have no idea what I am talking about 😀

As well as needing to listen for what customers aren’t saying to us, it is also important that we don't just take on any business. We do not want BMW customers….

What are BMW customers I hear you say? Read on my friend, read on...

Let me share a story with you about a customer I had around 3 years into starting my first business.

We were new and growing as a small software company. We were hungry for business and customers. We sold our cloud software on a per-user per month licence basis and up until this point, the most users on one account we had signed up was 8.

Building a business from scratch is tough and you enjoy seeing every pound come in.

So you can imagine my happiness when we had a Oven Cleaning franchise business reach out to us about buying 34 licences for all of their franchisees across the country.

Not only were they keen to move forward with the licences but they also wanted to buy some support and training to get things started. The buyer at the customer seemed nice enough. They were direct but relatively friendly if somewhat business like. They were a husband and wife team and were obviously successful in building their business.

I thought they were a good partner.

They were going to become a £12,000+ a year client which (back in 2009) was a nice deal to do!

My mind started to drift thinking about the revenue and how positive this would be. We already had a team in place to support them and so it was just another customer to add to our growing list.

We agreed a price for the system and even when they asked for a discount we held our ground and offered some additional set-up and support help instead.

Around 7 weeks after we initially spoke, a deal was agreed and I was thrilled.

For a week or so only 😪

I should have probably spotted the signs initially but I had been blinded by the size of the deal. Alas….

Things started to unravel quite quickly.

We had outlined timelines to get started and when we could do the training but they started to demand things should be done sooner. Dates which had been agreed for training were then changed and when these didn't work, they started to get irate and say things like ‘We thought you would be accommodating’.

They paid the first invoice (we used to charge in advance which is the norm for online software) but then as we approached month 2, they said they didn't want to pay until some system changes had been made. These hadn’t been agreed upon initially and even though we were open to suggestions, we couldn't make changes that quickly.

The warning signs were when I did some training with the franchisees and one of them said that the lady who ran the business was demanding and he wished me the best of luck 😯

The constant stream of issues kept coming.

Nothing we seemed to do works. There was either a problem with the system or the support we provided.

We couldn’t do anything right and even when after 4 months, I went to see them personally to talk it through they basically tried to run roughshod over me. "If you want our business then this is what you need to do" was the message I received.

I felt stuck. I wanted the revenue but their approach was starting to take its toll.

It affected my team and all of the focus on this customer meant we were neglecting others.

7 months on from the initial excitement of winning the deal, I received an email that said, if we didn't do numerous things within 2 weeks, then they would leave.

What they wanted was impossible and so sadly we had no choice but to end the relationship.

Looking back now, I can see that I had got goo-goo about the numbers and the revenue and not taken into account the impact of a BMW customer.

BMW’s (thanks to my good friend Matt Garman for this term) are customers you want to avoid. Like the one I had above.

BMW’s are Bitchers, Moaners and Whiners.

Something is always wrong. Their glass is always half empty about what you do. They complain about the smallest things and whine to others about you.

Put simply, they simply are not worth the effort. BMW customers can have a huge negative effect on your company and mindset if you are not careful.

Avoid them.

How you might ask? What are the signs?

Look out for the following:

• What they are like initially when you meet them. Are they friendly and approachable or hard work and demanding? It’s unlikely they will change
• How demanding are they of you? Are their demands unrealistic? If they try and bully you before a deal is signed, it's a sign they could become a BMW when you do work with them.
• What was their history with a solution like yours? Have they gone through lots of different providers? If so then it's a potential warning sign that they are the issue and not the companies they work with.
• Are they continually trying to knock down the values you have? Do they look past the good bits and focus on what you don’t have in a way to negotiate you down? If so, ask yourself, what do you think will change if they do sign up to become a customer?

There are plenty of others but these are just some of the things that I now look out for when I work with new customers.

So many people in business think all business is good business and if you bring revenue in then you just have to deal with it. The customer is always right etc.

It's not always the case. Sure you may have to deal with some problems but if you continually have issues with certain customers then be very careful. Bitchers, Moaners and Whiners may offer income but their damage to your business could be huge and far outweigh the income they bring in.

Sales is not subservience. It's not about you bowing down at the feet of prospects and begging them to work with you. Good business is about 2 sides respecting each other and understanding the value each side brings.

If you are in a sales role and think ‘I don’t have to handle this customer’ then also be wary. You don’t but you will seriously damage relationships with other colleagues if you keep bringing in customers who don’t value the business and which are hard work to deal with. Don’t be so pre occupied with winning the deal that you destroy your own reputation within your business.

If the new customer or prospect you have is a constant BMW then be prepared to take action and send them on their way.

The revenue loss might hurt but your mindset and inner self will thank you in time.

Have you got a story about BMW customers? Let me know what happened and what impact they had on you!

Wishing you all a brilliant week ahead.

Until next Saturday, keep smiling and stay focused on becoming a fly on the wall of the brain of your buyer.

James

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