Once you decide to "fire a customer", it may not be easy to get thru that process. It can be tricky if the cancellation started on the side of the software provider.
We run an enterprise saas business and at one point decided we can't work with a particular customer anymore. We informed the customer that we will terminate his service and cancel all his outstanding (unpaid) invoices.
Soon after that, the customer started to take legal action against our company. It was quite an ordeal for about 12 months. At least it helped us improve our contracts and legal processes going forward.
However, since than we are careful to vet new potential customers before we offer our software. If we feel the software isn't a good fit, we will tell the customer and work thru our concerns before signing a contract. Even if we may lose some potential customers in the process, it builds a more healthy and sustainable business.
"Avoid toxic customers." Is now part of our handbook.
We run an enterprise saas business and at one point decided we can't work with a particular customer anymore. We informed the customer that we will terminate his service and cancel all his outstanding (unpaid) invoices.
Soon after that, the customer started to take legal action against our company. It was quite an ordeal for about 12 months. At least it helped us improve our contracts and legal processes going forward.
However, since than we are careful to vet new potential customers before we offer our software. If we feel the software isn't a good fit, we will tell the customer and work thru our concerns before signing a contract. Even if we may lose some potential customers in the process, it builds a more healthy and sustainable business.
"Avoid toxic customers." Is now part of our handbook.