Client Maintenance
Posted on April 27th, 2010 in Competitive Advantage, General, Grow Your Sales |
We all know that not all clients are created equal. Some are long timers and never give you a call or complaint. They have a consistent payment history. They sing your praises. These "perfect" clients probably make up 20% of your customer base. Lucky you. Then there’s the rest. These clients may have one or more of the following "challenges".
- Consistenly Poor Payment History
- Consistently Poor Communications
- High Complaint Percentage
- Low Percent of Contract Increases
- Low Refferal Percentages
- High Management Turnover
- Haggling
Sound familiar? Well, by evaluating each client as to the above characteristics, you can formuate a Plan to deal with them specific to the problem. And, that is exactly what I suggest you do.. Lets look at each situation.
Poor Payment History. This case needs a discussion with the client contact or their accounting department. Ask what meets their needs best. Automatic billing to a company or if a residence, personal credit card? Keeping invoices for the same amount each month with any changes or add ons billed separately? Quarterly billing? Just by asking you have alerted them to the fact that you are a small but professional business. Setting up payment, letting them know what you can do to meet their needs says a lot and may help aleviate the problem.
Poor Communication. Periodically ask who you should be talking to if there are concerns. Key people get transferred, let go and so on. This shows you want everything to go smoothly and gives you the chance to get in front of the client in a positive manner. And, often, a face to face results in requests for MORE PLANTS!
High Complaint Numbers. As a friend of mine once said, "kill ‘em with kindness". Give them a monthly checking in call. Respond to complaints immediately. And, follow up with a report of what was done, when and why.
Low Contract Increases. Reevaluate each job annually for profitability and give them fair warning of potential increases such as ones tied to cost of living tables etc. Review the account to see if it can be reengineered so that even if the charge remains the same, your profitability goes up.
Low Refferal History. Again, a visit with a request works wonders. Testimonial letters, sister company referrals, even a gift orchid can get your client to help you grow. Best of all, it reinforces the positive feelings they have about you.
High Management Turnover. This is most often experienced with Hotels venues. You spend years making a good friend and, bingo they are transferred to Cincinnati and the new guy wants to cut costs. Two strategies here. Ask the one leaving to have the new guy give you a three to six month grace period and then perform like heck. Next don’t forget old Joe just because he is moving to another property. Maybe he would want your recommendation on who to use in his new city and you just might be able to sub out that work. You just never know. Does it ever happen? Yep, it happenend to me…twice.
Haggling. Be prepared. Go into every meeting with your pricing structured so you can give up something but not really. He will think he has won…..
Bottom Line is that I bet you already know the client personality traits for each of your clients. Just come up with a Plan in advance. Clients are like live plants. They need maintnenance too. Now, go out there and give them some water, Tigers.
