1. How firms ending relationship with the difficult or dysfunctional customer
Summary: the customer of an companies is not always right, dysfunctional customer
behavior can affect employee other customers and the other organization, there are the
“problem customers “a service manager have to know how end the relationship with the
“problem customer “
Dysfunctional customer behavior can create both direct costs and indirect costs for the
organization; both are the expense for organization
This article is to describe how to relationship end -due to lack of customer profitability.
The usage of customer valuation techniques and the preponderance of unprofitable
customer relationships, and to identify various ways of managing unprofitable customer
relationships by means of bunch analysis.
The lesson shows that many companies in the industry lack knowledge and use of
customer valuation techniques I have tried to understand for that an organization, how
and when? End the relationship one of the customer,
my article is the problems involved are analyzed based on examples from the services
sector, and relationship oriented strategies and processes are outlined, firms may
identify some customer who are not in their targeted segment, who are not profitable in
the long run, or who are difficult to work with or dysfunctional, a company may not want
to continue in a relationship with every customer,
However gracefully exiting a relationship may not be easy, customers may end up feeling
disappointed, confused or hurt if a firm attempts to terminate the relationship,
Relationship endings: relationships end in different ways – depending on the type of
relationship in place, in some situations, a relationship is established for a certain
purpose and /or time period and then dissolves when it has served its purpose or the
time frame has elapsed
Sometimes a relationship has a natural ending or an ending may occur because the
customer is not fulfilling his or her obligation,
For example: A bank may choose to end the relationship with a customer who regularly
has insufficient funds in the checking account, whatever the reason for ending the
relationship, firms should clearly communicate their reasons for wanting ( or needing ) to
terminate it so that customers understand what is occurring and why,
Should firm’s combustion their customers? a logical conclusion to be drawn from the
discussion of the challenges firms face in customer relationships is that perhaps firm
should seek to get rid of those customers, who are not right for the company, more and
more companies are making these types of decision based on the belief that troublesome
customers are usually less profitable and less loyal and that it may be counterproductive
to attempt to retain their business,
For example: I worked for a service oriented company in Dhaka, Bangladesh. We had a
few very good customers we gave them services regularly through L/C /cash/ credit

2. based. One of our customer recruit a new CEO, who thought that we were taking more
price so he was trying to do his new orders in some of our competitor’s factory, although
we owe them a big credit. Fortunately, they failed to continue in the new company for
poor quality and service. They came back to us for workout this order. In the mean time
we find out this history of their cunningness. So, we decided to help them work out here
but after they pay our debt in full. They were in a tight position of shipping deadline, so
we got paid in full. And after complete this order we send them a letter with closing our
business for good.
Although it may sound like a good idea, dismissal customer is not that simple and needs
to be done in a way that avoids negative publicity or negative word of mouth, sometimes
raising prices or changing for services that previously had been given away for free can
move unprofitable customers out of the company ,
When addressing potential customers, the finer the targeting in respect of their
current product portfolio, present phase in life, or perhaps current events in their lives
or current transactions, the greater the probability of successful Cross-selling, up-
selling or initiation of a customer relationship. It is only with the aggregation of all the
available information along with a real-time evaluation of current change indicators, a
very high number of segments and finally effective campaign support that systematic
and targeted marketing becomes possible.
But in situations firms have service encounters that fail because of dysfunctional
customers dysfunctional customer behavior refers to actions to terminate relationships
with customers and other stakeholders, at a profit, so that the objectives of all parties
are met, and that this is done by mutual exchange and fulfillment of promises".
The further investigation is by the following research questions:
(1) What do suppliers know about the profitability of their customer relationships?
(2) How many unprofitable customer relationships do suppliers have in their customer
portfolios?
Is lacking profitability a common phenomenon among business-to-business suppliers?
(3) What is the suppliers’ view of relationship marketing and dissolving unprofitable
relationships?
It is modeled as a function of a customer's lifetime duration, revenue flows and firm
costs associated with serving the customer From an economic point of view, relationship
dissolution becomes an issue in those cases where the real or anticipated costs outweigh
the benefits of relational exchange Suppliers do not always correspond to this economic
rationale and commonly engage in unprofitable
Helping a client find a new supplier who can better meet its needs is another way to
gracefully exit a non-productive relationship, if the customer has become too demanding,
the relationship may be salvaged by negotiating expectations or finding more efficient
ways to serve the client, if not both parties may find an agreeable way to end the
relationship
Finally, participants were invited to respond to a set of questions describing their own

3. Firm. Also stated is the percentage of respondents who were not familiar with the
methods. Especially noteworthy is the low awareness concerning customer lifetime
valuation. Although there is an intense discussion on lifetime measurement in academia,
business-to-business firms managers in charge of handling customer relationships in the
industry investigated are, to a large extent, not even aware of it. Information on
customer profitability is scarce in the industry as the methods to measure it are not
used commonly.
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