Business Education

Is Your Most Loyal Customer Sabotaging Your Business?

It’s a scenario right out of science fiction. But, as the saying goes, “Truth is stranger than fiction.” And that was probably your initial reaction when you first learned your best customer is doing the unthinkable—purposely sabotaging your business. What makes this behavior even more perplexing is the nefarious motive behind it. That being, your customer wants to “keep” you all to themself. But why? And how should you deal with it?

How Business Owners Can Handle Customers Who Secretly Badmouth and Don’t Give Recommendations

You pour your heart into delivering exceptional products or services as a business owner. So, it’s frustrating to discover a customer who secretly badmouths your business while refusing to recommend you to others—not out of dissatisfaction, but to keep your offerings a secret from their competitors.

This behavior, though rooted in a backhanded compliment, can harm your reputation and growth. So, here’s a short guide detailing the ways to address this issue tactfully, maintain professionalism, and turn the situation into an opportunity.

Understanding the Customer’s Motive

First, recognize why a customer might act this way. When someone loves your product or service but hides their endorsement, they’re likely trying to maintain a competitive edge. For example, a boutique retailer might avoid recommending your unique supplier to keep their inventory exclusive. While this reflects the value of your offering, their secretive badmouthing—perhaps spreading vague negativity or withholding praise—can damage your reputation indirectly. This behavior often stems from insecurity or fear of losing their market advantage.

The challenge lies in identifying this behavior. Unlike overt critics, these customers are subtle. They may give lukewarm feedback in public, avoid leaving reviews, or deflect when asked about their supplier. To spot them, monitor online chatter, pay attention to inconsistencies in their behavior (e.g., repeat purchases but no referrals), and listen for rumors in your industry network.

Step 1: Engage Directly and Build Trust

Once you suspect a customer is engaging in this behavior, approach them diplomatically. Initiate a private, friendly conversation to understand their perspective. For instance, say, “I’ve noticed you’re a loyal customer, and I’d love to hear how we can better support your business.” This opens the door for them to share concerns or reveal their secret motive without feeling confronted.

During this dialogue, emphasize mutual success. Explain how your business thrives on collaboration and word-of-mouth, which allows you to innovate and serve them better. If they’re worried about competitors, reassure them about your ability to customize offerings or maintain exclusivity (e.g., unique product variations or priority service). Building trust can encourage them to advocate for you rather than undermine you.

Step 2: Address the Badmouthing Tactfully

If you have evidence of their negative comments—say, a vague complaint shared in an industry forum—address it without accusation. For example, contact them and say, “I heard there might be some concerns about our service in your network. I’d love to clear up any misunderstandings and ensure you’re fully satisfied.” This shows you’re proactive and care about their experience, which can disarm their defensiveness.

If they admit to badmouthing, ask open-ended questions: “What prompted that feedback? How can we improve?” Often, their negativity is a smokescreen to deter competitors, not a genuine grievance. By addressing it head-on, you signal that you’re aware and value transparency, which may discourage further undermining.

Step 3: Incentivize Positive Advocacy

To counter their secrecy, create incentives for them to recommend you openly. Offer a referral program, such as discounts or exclusive perks for bringing in new clients. Highlight that your business can serve multiple clients without compromising quality or exclusivity. For example, a graphic design firm could offer a premium service tier for loyal clients, ensuring they feel prioritized even if others discover your work.

You can also appeal to their ego. Invite them to be a “brand ambassador” or feature their success story in your marketing (with their permission). This positions them as a leader in their field, making it harder for them to badmouth you without losing credibility.

Step 4: Protect Your Reputation Proactively

While addressing the individual customer, safeguard your broader reputation. Encourage satisfied clients to leave reviews on platforms like Google, Yelp, or industry-specific groups. Share testimonials and case studies on your website and social media to drown out any covert negativity. If you’re active on platforms like X, engage with your audience to build a positive narrative around your brand.

If the badmouthing escalates or spreads false information, consider a subtle public response. For instance, post a general statement addressing “misconceptions” about your business, focusing on your commitment to quality and transparency. Avoid naming the customer to maintain professionalism.

Step 5: Know When to Let Go

Sometimes, a customer’s behavior is too toxic to salvage. If they persist in badmouthing despite your efforts, weigh the cost of keeping them. Politely distance yourself by prioritizing clients who align with your values. For example, you might say, “We’ve loved serving you, but we’re shifting focus to clients who can fully partner with us in growth.” This preserves your energy for customers who uplift your business.

Turning a Challenge into Opportunity

Dealing with a customer who secretly badmouths and doesn’t give recommendations is tricky, but it’s also a chance to refine your approach. By engaging empathetically, incentivizing advocacy, and protecting your reputation, you can transform a covert critic into a vocal supporter—or at least neutralize their impact. Ultimately, your focus should remain on delivering value and building a community of clients who champion your work openly.

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We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, Waters Business Consulting Group to learn more about us and the services we offer.

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Do Businesses Really have a Credit Score?

February 26, 2021 No Comments

Do businesses actually have a credit score? The short answer is — yes. And, these measures of financial responsibility are calculated much in the same way individual credit worthiness is determined. Although it’s not something that’s widely discussed or known about in the consumer world, businesses do have credit histories, and therefore detailed reports which give them scores. Read on to learn the basics about business credit scores and what you need to know. How Business Credit Scores are Calculated As mentioned above, a business credit score is measured very similar to the way individual scores are calculated. Meaning, the length of credit history, types of credit used, payment history, debts owed, and other factors. Unsurprisingly, the better a business handles its financials, the better score it earns. Businesses of all sizes may need credit. A carpenter with no employees may want to borrow money to buy equipment. A marketing professional with a few employees may be ready to purchase furniture and computers for a new office. A salon owner with subcontractors but no employees may want to buy, rather than rent, commercial property. Any type of business could benefit from a business credit card. —US News and World Report Of course, there are some differences, one of the most minor being the scores themselves. While individual credit scores range from a low of 300 to a high of 850, business scores range from 0 to 100, with 100 being the highest. Additionally, business credit scoring services use different models in order to determine the creditworthiness of companies. Also, instead of there being three main credit reporting bureaus for individuals, Equifax, Experian, and TransUnion, there are two principal business credit scoring entities: Dun & Bradstreet and Experian. How to Improve a Business’ Credit Score Since business credit scores rely on many of the same elements as individual consumers, nearly the same factors are used to assign a credit worthiness score. So, in order to maintain or improve a business’s credit score, companies must do the following: Keep debts manageable. Opening too many accounts and taking on large amounts of debt will only increase your financial risk. This not only hurts your business’s credit worthiness, it also puts a lot of strain on you as the owner. This is why it’s best to keep your credit accounts to a minimum and pay off as much debt as possible. Utilize different types of credit. Credit mix is also a consideration, meaning businesses having different types of credit accounts. While it’s advantageous to have various types of credit, it is equally advantageous to keep these to a minimum so you’re able to pay what’s owed in a timely manner. For instance, you might finance or lease vehicles through your business, have a business credit card, and maintain vendor credit accounts. All of these will go into determining your business’s creditworthiness. Be vigilant with your personal credit. One misnomer that entrepreneurs have about business credit is that it’s somehow separate from their personal credit and/or financial responsibilities. However, this is completely false. Business credit accounts almost always require an individual or personal guarantee. This of course means that if the business defaults on a line of credit, you are personally responsible for that particular debt. Moreover, business credit is partially scored on your personal credit, so it’s best to maintain a good personal score for the benefit of your company’s creditworthiness. What other suggestions do you have about maintaining a business’ credit score? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Smart Businesses are Adapting to the Quiet Vacationing Trend

January 2, 2025 No Comments

Last summer, several families skipped the usual bustling theme parks and crowded beaches for a serene cabin tucked away in the mountains.

5 Ways Small Businesses can Weather Uncertain Economic Times

January 21, 2020 No Comments

With regular life all but suspended and so much uncertainty, small businesses will most definitely feel the impact. Although most of it will occur in the short term, it could well have long-term impacts, lasting far beyond the next several weeks. That means it’s time to hunker down and get serious about the situation to minimize any potential damage. 5 Ways Small Businesses can Weather Uncertain Economic Times The very first thing to do is to review all expenses. Not just some or the top, but everything. You’ll likely be reminded of at least one that’s either unnecessary or simply too costly to maintain in its current status. In an uncertain economy when every penny counts, even the smallest increase in revenue or reduction in expenses can have an impact on company profitability. The good news is a large-scale company overhaul isn’t necessary. It’s often simple, common sense steps that improve the bottom line, especially for a small business. Q1, 2020 is a good time to step back and look carefully at your business practices. —American Express Then, it’s time to start to reduce discretionary spending. Here again, don’t just settle for around the margins. Instead, think about where you can cut when it comes to discretionary spending. You’ll probably be surprised by how much you’re wasting and don’t even realize it. More Ways of Dealing with an Economic Downturn Of course, those two things won’t do it alone. While reviewing expenses and cutting down on discretionary spending will most certainly help out, you’ll probably be able to do more — a lot more. For instance, you can do the following: Buy more carefully. This is different from discretionary because these entail essentials. Although these things are necessities to run your business, you can probably get away with buying a little less. Doing so across a few or several items will have a cumulative savings effect that will make a real difference. Cut down on extras. Overtime, perks, even benefits are all part of this particular category. (You should be doing this periodically, about once to twice per year, anyway.) Again, you’ll likely be a bit shocked by how much these items are costing you, especially when added-up together. Consider cutting pay. This doesn’t just apply to your employees, but you as the owner, as well. Yes, you. It might be necessary to reduce team member hours, and even take a temporary pay cut yourself. This will not only help you weather the storm, but also, it shows real leadership. Moreover, it sends a clear message that you are part of the solution, rather than part of the larger problem. Innovate. Huddle up with your key employees and leaders and challenge everyone with to come up with 2 or 3 innovative strategies to create or capture new revenue sources that you are currently not generating. Many successful businesses have found way to survive and in some cases developed entirely new services and products that resulted from innovating during difficult times. Necessity is the mother of invention. Plato. What other measures would you suggest? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.