Last week I was out for cocktails with a few other business owners in the service industry. One was a skin care manufacturer, the second was a clothing line designer and the third was the owner of a large fitness chain of health clubs.
We got into an in depth discussion about managing client relationships
We were discussing how to repair a client relationship where things have gone wrong, for example clients whose expectations are unrealistic, clients who are abusive towards the staff and those clients who for whatever reason have become dissatisfied with their service.
The Wall Street Journal had run an article on entrepreneurs a few years back where I was quoted by saying “My New Year’s resolution as a business owner is to only work with people, places and things I really care about and that respect my team, work and over-all business ethics.”
1. Choose clients carefully
2. Define the working relationship and set Client Expectations
3. Communicate, Communicate, Communicate...Then Communicate
4. Live Up To Your Own Standards. Give What You Expect, Set The Example.
If you have done all your work working with your clients and have defined what you can achieve and there are still insurmountable problems, then it is time to re-evaluate whether that client is appropriate to have.
About a month ago we had a client call the office and demand that I get on a conference call. The brand was new to the market, had very little distribution (only one salon in New York) and the consumer awareness was simply not there (she refused to do salon events with us). The owner had worked with two other PR firms before us (our biggest competitors) for about two years who both did not secure the regional and national glossy press that the client was looking for. We were given about 3 months to change her entire media platform and correct the damage that the other PR firms had done during the course of two years. Naturally I slipped off my dress shoes, undid my tie, sat back in my chair practiced my breathing exercises and then took her call.
While we had secured 18 confirmed hits in the top national glossy publications in 90 days, the client was not satisfied instead looking for placement in Oprah, The Today Show and Allure?” Although we had never promised these items and told were very clear on the types of coverage that could be expected, the client had decided what appropriate placements they wanted.
I began to look deeper into her PR reports which indicated that she was in InStyle, Allure, Good Housekeeping and WWD that month. The report further revealed that there were pending stories in over 15 publications like; Self, Shape, Elle, etc. Then I had a revelation that no matter how well we performed or how wonderful her press was this was a client who would never be happy with our services. I made the decision to terminate our relationship, wishing the client all the best.
When clients sign on we given them a “What You Can Expect Document” and make them sign it after they read it. It educates them on the timeline of pitching long leads and the simple fact that your press usually reflects your distribution. Where am I going with this blog post?
If your clients:
1. See you as disposable and not a valued business partner
2. Makes unworkable demands on your team
3. Does not pay you the market value of your services
4. Is late in making their payments
5. Has expectations that are unrealistic
Re-evaluate whether they are appropriate for your client roster. If not, be decisive and professional and release them from their contract. There are many wonderful clients who will be the perfect fit for your agency.
PS, a competitor of that particular client called me the following week and we have LOVED working with them. Their press is exceeding our expectations and they are ecstatic. Still, No Oprah!
Posted by Pierce Mattie on October 9, 2006 8:57 PM
| Permalink
