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Entries in difficult customer (2)

Thursday
Apr142011

how to deal with difficult clients

dealing with a difficult client is a huge challenge! just tell yourself that it is a learning experience - dealing with the problems is how you learn what to do with your biz to avoid more problems in the future, attract the right people, and make your biz run more smoothly. difficult clients will always be upsetting (i still get upset when i have one) but it does get easier because each time you learn what you need to do in the future to avoid difficulties and you get better at dealing with complaints.

dealing with your immediate problem:

  • really listen to the complaint

if you do not have policies in place to deal with problem you face with your customer then your immediate goal is to figure out what you can do right now to respond to their concerns and for both of you to walk away amicably. really hear the concern being voiced - try not to get defensive, make excuses, or be argumentative. just listen. and then come up with a solution that you can both live with.

  • consider if this is someone you want to come back

as much as it is mortifying to have an unhappy customer, keep it in perspective. you might be tempted to bend over backwards to make them happy, after all word of mouth is a big part of the marketing strategy for little businesses. but remember that your most difficult clients are generally not your ideal clients so you probably don't really want them to come back. also if you give in to their demands THAT is what they will tell her friends - you will get the reputation of being a push over who will give in if people just complain. ugh.

  • be professional

so the key here is to be polite, be professional and be firm. offer a fair solution that will allow the client to walk away with something and will allow you to maintain your professionalism. and whatever you do, do not air your dirty laundry all over facebook, twitter & your blog. i see this happen sometimes and it is just plain yucky. your entire fan list does not want to hear “i had a complaint about xyz so from now on i will no longer be doing blah blah blah. sorry if that upsets you.” ugh. don’t do it. just deal with your client privately and professionally then walk away.

dealing with future problems:

  • create a plan

the key now, moving forward, is to have systems in place to deal with possible complaints, problems or difficult customers in the future. brainstorm all the different scenarios that you might encounter with your customers and determine right now how you would respond to each of them. write out a plan for yourself including the steps you would be willing to take to deal with the problems, what you will refund, discount, replace, guarantee, and what is the customers responsibility. even include how you would deal with discounts for friends & family, requests for donations & charity items, special rates for VIP clients etc.

  • terms & conditions

create a product/service guarantee, a return policy, and a refund policy that you can clearly communicate to your customers. have a space for your terms & conditions on yoru website as well as in your client documentation (information packages, invoices, contracts... whatever you use for your biz.) if you are not sure what to include in your terms & conditions have a look at what other similar businesses communicate to their clients – this will often give you ideas of what you need to consider.

  • FAQs

it also helps to have a frequently asked questions section on your website or in your information package so people know what to expect when they purchase a product or service from you. again, do some brainstorming and try to predict the questions, concerns and objections people will have and then address them in advance in your FAQ section.

  • manage expectations

be sure that your website, brochures, ads & other marketing materials demonstrate your best work, your true style, what customers actually get. don’t promote stuff you hate doing. don’t advertise something that you can’t consistently offer. don’t infer that you can do something you aren’t capable of doing. when customers make an inquiry about your product or service be sure they have seen examples of what you do so they know what to expect. they need to know they are in the right place and you need to know they are your right people.

  • disclaimers

be clear with customers if you are testing a new product line, offering lower prices or modified services because you are just starting out, trying to build your expertise and portfolio... basically anything that might result in a question about your practices later on. this will again help to manage expectations: clients will be happy to get to try out something at a discount and more understanding if things do not have the result they were hoping for. it will also make it a lot easier to change your prices, products, practices and policies down the line without alienating customers that have supported you.

what practices and policies do you have in place to pre-empt problems before they happen? what strategies do you use to deal with a difficult client? what further questions do you have about this topic?

further reading:

Thursday
Nov042010

{pricing} how my 'special deal' ended up biting me in the ass

do you ever have times when the universe seems to be sending you a message? or rather beating you over the head with a message until you get it through your thick skull?

that is happening to me this week, so i thought i would share with you. we can call it a light bulb moment, like oprah does. also known as ‘duh haven’t you figured that out yet?

i decided to think outside the box when it comes to selling my thing, so i recently did some one day events in which i offered a modified, ‘more affordable’ version of my normal service, had some special prices on my products, and gave a portion of the fee to a fundraiser.

i did this as a way to get my name out in the community, to provide a service to a large group at once and to introduce another income stream into my biz that wouldn't require as much time as my 'regular' work.

before i go any further with my story, i would like to insert that these were indeed great events, and for the most part i think the clients were pleased with their service and products.

but on one day, i had a large number of problems arise from one event: repeated emails and calls asking me to do stuff for free, switched and cancelled orders, people pushing for things even after i said no, people criticising my methods because they know ‘so-and-so’ does this and offers that and doesn’t charge anything... well you get the idea. needless to say i was frustrated.

don’t get me wrong, i don’t mind dealing with client requests and taking as much time as needed to get an order just right, when clients pay the full price for my regular service. my time and expertise and attention are part of the value people get when they come to me. but these events were meant to be quick, simple and no-frills.  and it turned out to be anything but.

this is what i noticed; it seemed that the clients who were the most high-maintenance were the ones who perceived my products to be ‘cheap’. the ones who found it to be ‘expensive’ still spent their hard earned dollars on my stuff, but they never made a complaint or extra request, and are thrilled with their results.

i also found that people who knew of me from when i was just starting out and not charging much were the most difficult; i felt they did not value my work, my time or my expertise. the ones who only know me as my ‘new’ professional brand did not question my value or expertise, and treated my biz as a professional.

since that day i have had the following messages cross my path:

~ if you attract people based on price, you will attract people who are difficult (dave Navarro, the launch coach)

~ your right price has got to be enough that you are happy to do the work and you filter out people you do not want to work with (dave navarro, the launch coach)

~ when you discount you start to attract price sensitive clients who are coming to you simply for one reason, because you are inexpensive. And you are also teaching your really good clients to wait for a sale. So you are devaluing the long term value of your business and of your brand. (sarah petty, the joy of marketing, posted on MCP actions)

~ the 'give stuff away for free, make money later' strategy gives the impression that your products (and ultimately you) aren’t really valuable. (megan auman, crafting an MBA)

~ when you stop advertising low prices, those whose only loyalty was to the lowest price stop coming in (mark silver, the heart of business)

when i look back on my clients over the past 2 years i can see a pattern. the ones who were the most difficult were the ones who were there because i was offering something really cheap. they are still difficult even though i have relaunched, rebranded and repriced my biz. they still expect something for nothing.

the clients who have been the real gems to work with are also the ones who have spent the most money on my service and my products. they are not high maintenance because they trust me and they have confidence in my work. they see my biz as having value and being professional based on my prices and my brand.

ta da! price affects perception. low prices attract difficult people. the right price is more than just profits, it is branding.

in the end, i did enjoy doing those events and i think there will still be a place for them in my biz. but in the future i will be reframing the way my pricing and value is perceived by clients on that day. i will also be very clear about the service i am offering – ‘no frills & low maintenance.’ if you want the frills, you need to pay for my regular, more expensive, more value-added service. new rule. =)

what do you think? what experiences have you had when offering discounts or special deals? have you had troubles changing perception as you have changed your prices? do you agree with the statements above? i would love to hear from you!