How to deal with a bad customer?

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Posted by Linn_Boyd, 04-15-2006, 02:37 PM
We have a customer that is a managed client, we agreed to manage his server for a period of time with the install of a large complex application, we installed it and turned it over to him. The customer decided that he didn't like the idea of not having a graphical interface. We installed one for him, he didn't like that one because of a couple of features were not available in the open source version of that application. We told him that at no charge we would install a different suite of applications that did the same thing, but added graphical user management, gave him a choice of three. Now this customer has broken it a month later and then has decided he wants another sub applications installed and is threating with chargbacks etc, what does everyone do in this situation? I want customer satisfaction at almost all prices, but on this server we have spent ~100 hours installing application etc for him. What would you do? -Linn
Posted by Bryc3, 04-15-2006, 02:42 PM
If you offer managed services, then you should manage the server for him. Unless your TOS states that you do not support software that your company doesn't provide. eg) Only manage Control Panels, Apache etc
Posted by Linn_Boyd, 04-15-2006, 02:53 PM
His agreement was only for this application OpenXchange and the webmin control pannel. We moved it to egroupware at no charge.
Posted by Kalyse, 04-15-2006, 03:06 PM
See I dont understand, is it that easy for peopel to chargeback? If your contract or agreement was for the first application and hes changed was the agreement updated? If not and he is been a pain just tell him that he is no longer supported by the contract and if he chooses to chargeback you will pursue legal action. You should have full support.
Posted by Linn_Boyd, 04-15-2006, 03:28 PM
It isn't that it is that easy(but yes it is, and prices us money either way) but the issue is I don't like leaving customers out in the cold, I would like to knwo what other people expect and what has been done in the past.
Posted by futurehosting, 04-15-2006, 11:55 PM
Try to explain to them that you can't keep going back and forth with it? Start charging per hour if necessary then they will stop with the back and forth. Otherwise refer them to another company.
Posted by datacenterdirectory, 04-16-2006, 03:37 AM
If this is the case, make sure you have logged this agreement. If indeed the customer does commit some sort of chargeback you will be able to contest it properly giving you a 50/50 chance. If you want to save the time and hassle of a chargeback then provide the customer with a refund and find another customer which will respect your service agreements.
Posted by Kalyse, 04-16-2006, 06:34 AM
Dont refund, youve already spend hours on it.
Posted by dkitchen, 04-16-2006, 08:34 AM
If you have a signed agreement and the customer files a chargeback - persue it with collections. You have a 99% chance of winning if the case goes to court. I have done this so many times with customers that didn't pay up. Just another suggestion here for managed services customers - don't give them the ability to break things. Our managed hosting customers don't get root / admin access to their services, if they want it we won't manage their service anymore. Dan
Posted by Bilco105, 04-16-2006, 08:56 AM
Bingo. If people require a 'managed' service, then 9 times out of 10 they are not comfortable with command line administration.
Posted by Tina J, 04-16-2006, 09:07 AM
I learned a long, long time ago that you can't give away your services...just to try to keep a customer happy. There's no way in hell I would ever give away 100 hours of time. You *must* charge for your time. It's just bad business if you don't. Why? Because, as you've found, the customer will expect that you'll work for free...because you always have done that for them before. Now you're trying to change the rules mid-way through the game, and not want to work for free anymore, and the customer can't grasp that. My advice would be to tell the customer that he's received $xxxx in free services, but future hours will be billed at your contracted hourly rate. At this point, he's going to be angry (again, you're changing the rules on him)...but it might be better just to let the customer go elsewhere. --Tina
Posted by f9-Alex, 04-16-2006, 10:54 AM
Just tell the client that you don't think you're providing the best possible service you can to him, and suggest at least two or three hosts he can switch to instead. Offer to help transfer his stuff for free. There really aren't too many negative things he can say about your company in that situation. When you contact him, be forward, but don't make it sound like you're kicking him out. If he gets that impression, then you might have problems.
Posted by kronologick, 04-16-2006, 12:13 PM
In my professional experience, Dan has hit it right on the spot. You are a registered company (or you should be) and you should also have an internal collections service and after 30days with a customer unwilling to work with you on payment then you should push that customer to an external collection service. Customer seem to believe that just because you are an online service provider that they can just charge back at the drop of a pin when that isn't so. I have gone though litigation because of unreasable customers doing just that same thing and as long as you keep hardcopy records and an attorney specializing in online transations you can keep yourself protected. It does cost but just consider it insurance, like you would with your house, car and if you rent a house...renters insurance.