02/05/2012

Playing the Blame Game – How You Are Damaging Your Client Relations

Who do you blame if things go wrong with your client relations? I put my money that it’s the client. It’s always that files have been sent too late, the client didn’t sign off on time or they simply started the project too late. It just couldn’t be that you simply didn’t make the extra effort to get things done on time regardless the circumstances. Or maybe there is something else?

Clients are our natural scapegoats, there is no denying. They are stupid, mean, don’t know what we are talking about and always think that our job takes only a minute or those “few clicks of a mouse”. And that is regardless of what profession you are in. They are so evil in fact that everywhere you go you hear stories how clients are the biggest nightmare of any business. Yet still, you rely on them, their business, testimonials, referrals, new prospect introductions, regular projects and so on to survive in business.

Quite often though, clients relationships are stained and no matter what you say, in many cases, the real problem is not the client and what they do. It’s what you tell them actually.

I hinted about small promises you make before in one of the previous articles on this site, however, I decided that this topic deserves its own post to explain fully.

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Reducing the Price is Not Selling, It’s a Slow Business Suicide

Income is one of the most overlooked aspects of running a small business, especially at a start-up stage. New business owners worry about the actual number of jobs they get, the clients, where will the next one come from and so on but it is very rare that they think about how much money they actually make. It’s as if in their minds, having no work equaled a failure.

Don’t believe me? Well, how often do you reduce the price to get the job?

The scenario is usually quite simple, a prospect comes in and gives you the brief. You offer a quote, they make a face telling “hmmm, I really don’t know…” and you immediately drop your price down so that you can secure the job.

Sounds familiar?

Only last week I was talking to my neighbor, a new car garage owner who told me that at least half of the jobs he gets he does for nearly half of the price. Just to get the work in. As crazy as it sounds, this is a quite common situation for many small business owners. And a fear of having no work in is one of the reasons. Insecurity about asking for a higher price is another. However, in many cases, they simply panic the minute the quiet times kick in. In the eyes of many, reducing the price is the only way to overcome low sales and end those dreaded quiet times in business.

The problem is however that by doing so you secure the job but not the income.

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Who is Really Running Your Show?

Pay half now and the rest when you have it. Sure, we can wait for the payment. Of course, we don’t mind that the scope of work has changed three times already.

Innocent statements, aren’t they? In fact, I bet that in your eyes, if you have ever said anything like that to a client, they sound as if you were the best vendor that walked on this earth.

You are being helpful. Understanding. Patient. Great, there’s no doubt about that, right? The trouble is, you are also a person that has just let someone else run his show.

The idea for this post came to me during a sales call I witnessed a couple of days ago. It wasn’t intentional, I simply overheard it in a hotel lobby. At first I thought that it is going quite well to be honest. Only after a while it struck me, no matter what the client said, the young sales guys answer was always the same, “yes”. And the client, naturally, was making more and more demands.

- We want you to work twice as fast. - Sure.

- We want you to charge us only half of your daily rate though. - No problem.

- We want the project to be delivered to our offices in a medieval cart with 25 virgins throwing rose petals right in front of it all the way. - Of course, great idea!

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How Not to Impress Clients – Tips on Improving Your Customer Service

Those of you who follow my blog closely have probably noticed two themes alternating in my posts recently, sales and customer service.

The reason for the first one is that sales is very close to my heart. I consider myself a sales guy and also selling is something I enjoy doing. I am also publishing a book on sales in February (you can pre order it 30% cheaper here by the way) and generally enjoy writing about it. The second one because I see a major decline in customer service, the area of business that I find to be the most crucial to its success.

Let’s face it, without happy customers your business can’t survive. You can be selling like mad but if you do not retain your new customers, you will never build a profitable company.

However, as simple as it sounds, making your customers happy seems to be a problem for many startups.

Today I want to shed some light on what you should and should not be doing to provide excellent customer service.

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6 Common Customer Satisfaction Survey Mistakes and a Single Solution to Them All

Customer service is the heart of every small business. It is also one of the key factors that make or break the sale for you, or guarantee a repeat order.

In other words, how you treat your clients, on many levels, makes them want to do business with you, come back for more and tell others about you, period.

All of this is fairly known, or I have thought that it is. However, a recent research concluded in Ireland, where I live, showed that customer service on our little island here is down by a staggering 33%! Mind you, this is in a country where business was heavily hit by the recession.

I compared this report with experiences of some of my colleagues in other corners of the world and it seems that my country is not isolated with its low customer service problem. Many of the people I talked to voiced the same worries that with prices for goods and services going down, so goes the value of a good customer service.

And what seems to be even worse, a good customer service is not something that many startups consider their top priority. Sure, they have some idea of how to provide good service. They know that being nice to the customer, offering the best service and always trying to exceed the clients expectations pays off. They realize that the friendlier you are to the customer, the more likely he is to come back for more. They understand that it is them who have to solve any potential problems the client has, not the other way around. However practically all of them fail at two things, fully implementing all this in their day to day practices and getting satisfaction surveys to make that service even better.

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