Bad fit customers are customers that receive little to no value from your product. They're the opposite of your ideal customers, they increase your churn rate, damage your reputation, and increase your support costs. Identifying these customers early on will not only reduce your churn but also make growth easier.
To spot bad-fit customers, you'll have to describe who is an ideal customer for your product. In other words, customers that get the most out of your product. Once you've outlined the traits of your ideal customers, the next step is to qualify new prospects with this profile. Your goal is to ensure that every prospect you onboard matches the criteria outlined in your Ideal Customer Profile (ICP). This ensures that only the right customers use your product.
Exit surveys can also help understand the impact of bad-fit customers on your churn. When a customer cancels, it is important to know why they canceled and whether they were getting any value from your product. This will help you better understand what kind of customers get the most out of your product and those who don't.
All in all, bad-fit customers can be a blessing in disguise as they'll help you focus on the right prospects which in turn will help you retain more customers and increase customer happiness overall.