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Every customer is a profit center. Design your data system to calculate the amount of profit gained from each customer. We do that with departments, products and services. It's a no-brainer that profitable customers will result in a profitable operation.
Don't overlook the cost of complaint resolutions.
Consider having more profit from fewer clients than from a mix of winners and losers by eliminating the losers.
It may not be possible in every business to identify the return from each individual customer. You may be able to identify a group of customers who cost more to service than they contribute
When customers consume more than their allotted service costs is that fair to your profitable customers? Isn't it better to replace the losses by investing more margins in providing better service to cooperative customers?
We had client-students who, for some reason, tended to find fault where other customers did not. We did not waste a lot of time playing psychologist to find the real reasons. A quick amateurish conclusion was sufficient. Also, we had a particular amount of time (relating to revenue received) in mind for converting an unsatisfied customer to a satisfied one. When the disruption began to affect the staff morale and that of the other students, we issued a refund while suggesting the person could probably be better served elsewhere.
Most dismissals were considered a relief by staff members and other clients. Some even remarked that we were rather slow to act as we did. The policy was one of the major factors in maintaining a happy atmosphere.
The effect of a dismissal would linger for about two sessions. One client told a new arriving client, "You have to be happy here or they'll toss you out."
This practice was adapted from a previously-owned retail operation. There, badly-behaved customers were allowed to stomp out in disgust for the protection of the sales staff. A disruptive customer could put a sales clerk in a foul mood for greeting subsequent customers. When these bad people would say they were going to tell their friends not to shop here, we found we got fewer bad customers and more pleasant ones coming in to make for many happy profitable days.
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