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    • Fri Sep 12, 2008

    Do You Hold Your Customers Accountable?

    I’m in training meetings this week with Duct Tape Marketing Coaches and every time I conduct these sessions interesting ideas bubble up.

    Service providers often offer to provide accountability to the customers they serve – at least that’s the promise of the relationship going in. Your customers often hire you to come in and help, or maybe force, them to do the things they know they should. In fact, in some cases they may actually know how to do what they are asking of you, but they need that shove provided by the fact that you are there working with them.

    So the question I would like to explore is this – at what point are there consequences if customers don’t live up to their part of the bargain? At what point do you stop inspiring, cajoling and yelling and just start backing off or disengaging all together? What about building monetary penalties into service agreements that kick in when a customer does not complete assignments they agreed to?

    I know this may run counter to the “customer is always right” line of thinking, but I wonder if a customer who won’t allow you to do what you were hired to do contributes to devaluing your service? At some point they will disengage anyway and conclude that your service didn’t really help them. Is that any way to build a business?

    I was once asked in an interview on this subject about the biggest mistake service providers could make and I answered – “caring more about results than our customers do.” Again, perhaps a bit cold sounding, but few things will drag you down faster than tethering yourself to a ship this is either sinking or permanently moored.

    The point is, if you are putting yourself out there as a resource to help hold your customers accountable for reaching their goals, achieving a certain level of growth, or reaching a stated objective, then I think you must set very clear expectations that you are going to kick them in butt or kick them to the curb.

    Their success and your reputation may both be at stake if you don’t.

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    Posted by: John Jantsch on Sep 12, 08 | 5:05 am
    Category: Marketing Coach | Tags: , , , ,

    Comments
    « Talking About Money, Marketing and Other Stuff | Home | Top 12 Resources for Start-Ups »
    • Broadly I agree with you ... a customer who won't follow through on commitments makes it impossible for you (and thus them) to hit the agreed goals.

      One caveat; it's possible to let ego get in the way of communications over an issue like this. I may understand very clearly what my client should do, and be frustrated that they're not willing to do it. And it may reach the point that I don't think they "deserve" to have me on board if they won't listen to me.

      But particularly in larger companies, it's possible that my suggestions ... brilliant though they undoubtedly are ... just don't mesh with the strategy that is being planned on a higher, or perhaps parallel, level elsewhere.

      They're not rejecting me and my ideas ... they just aren't going to do that right now, which isn't necessarily the same thing.
    • Recently I decided to 'fire' my customers if they fail to live up to 'their end of the bargain'. I'm so tired of running around trying to please customers who cannot or will not appreciate the high level of service I provide; it absorbs my energy & prevents me from focusing on customers who DO appreciate it. And customers who truly appreciate my work pay me more than customers who don't.

      You know, the concept of 'Like, Know, Trust' is a 2-way street : sometimes we are too busy trying to get new customers to remember that no everyone qualifies for our services.

      In your opinion, what is the best/most professional/kindest way to 'fire' a client? What do you say?
    • I worked with a company once who sold jewelry at theme parks. They were fined for delivering product to the distribution warehouse too early (as was specified in the contract) -- the theme park planned thing exactly, and when their suppliers and customers didn't comply, they were not beyond fining them, or "firing" them.
    • Susan Kuhn
      Before it comes to that...its time to have a conversation that matters with the client and find out why you aren't getting what you need. Sometimes the client just needs to put you back on the top of their priority list, and such a conversation can do that. But be clear that the result needs both parties, and you both fail if one doesn't participate. During the BD process, and in the contract, it should have been made clear that you will pull out if client conditions deteriorate and in your sole judgment the conditions you need for doing top work are not present, so the conversation has some backbone to it. Usually the client comes around, in my experience, but you have to lead them; and when they do, they are even more committed to the work -- and to you -- than before.
    • Customer is always right but we can choose to pick our clients. :-)

      If they are not read to move forward yet, I'll ask nicely about their goal and if I can adapt accordingly. If not, perhaps our paths will cross again in the future.

      I agree with Marcel about firing a client. Working with clients that I enjoy makes my work more meaningful and fun.
    • I've struggled with this for sure. My latest off is: "If you do it our way, our timeline, our guidance" the work is 100% guaranteed to be successful. It states your belief upfront that we have the confidence to be fully backed and what they decide against the recommendations is not guaranteed and they're on their own. Of course if they don't follow through, neither does the guarantee.
    • Yes, whenever my client messes something up, or doesn't understand why something was done and he reverses it, I always charge more to go back and fix it.
    • I think the monetary penalty is the best way to go. I have worked for numerous companies that let the clients slack or go around and around on revisions. At the end of the day its the development company that looks bad.

      If i look at a print campaign or a website and it's really bad, I never think, "Hmm, I wonder if the client made these decisions."

      The first thought is always,"What design firm did this?"

      It is our job as professionals to make the client understand and agree with the best ways to go about things. And if they don't get it, then your now doing a good enough job of explaining it.

      Or you just tell them that its going to be more money to do things the hard way, the way the client wants it, and then they'll see it your way.
    • Hi John,

      Great post. Our company focuses on internet marketing for software, information technology and b-to-b companies. We guarantee results from our work based on objectives we agree to with the client. Our agreements contain a concise list of what is expected of the client in order for us to deliver the results. We make it very clear going in that they are expected to hold up their end of the partnership. It works quite well for us and for our clients.

      Susan
    • A nice post John. However, it seems that maybe you are getting ready for your Alan Weiss interview.

      When I reach this situation, I try to take a step back and see where I screwed up. If I am a good coach, I should be anticipating this situation and heading it off at the pass.

      If I was hired to do something and he is not participating I usually discuss it, "nothing happens," I send a letter putting my concerns and what action I will need to take as a result. If he does nothing but still sends a check than that is a horse of a different color, charity. Because, my hands are tied till he gets on track or we part ways.

      I have read many of Alan's books but after a while they all started to sound the same. I think his book on speaking is his best and recommend any consultant to read several but not over a dozen. Look forward to the interview.
    • Tom
      John, interesting post. You cover a topic that is not covered enough.

      To align with clients, I find that it's critical to begin the conversation with their goals and success metrics, and to tie these to clear timelines. Then, this becomes the measuring stick for the campaign and is revisited on a regular basis. This helps to build the goals/success metrics into the DNA of the relationship.

      I also find that it's useful to ask very straightforward questions upfront about the client's resources and bandwidth. For which tasks do they rely on internal employees, and for which tasks do they work with an outsourced firm. Are there any restrictions that need to be clarified prior to the engagement. Essentially, it comes down to painting a very clear picture of parameters and resources, and aligning with the client as to what will be required to achieve the agreed upon goals/success metrics.

      (By the way, love your blog! It's awesome.)
    • Of course the first consequence is that the customer doesn't get the result s/he wanted or expected. Sometimes it's enough to raise that possibility in discussion. And to point out who was responsibility for what.

      Some customers just don't have the 'attention span' that a big project requires. I've found that I've been able to minimize these failures by breaking down a project into smaller tasks with milestone dates.
    • Amen brother!
    • John Jantsch
      @all - seems like I need to clarify one point. It was not my intention to imply that the service provider didn't need to be accountable or could possibly share in the blame. Of course disconnects can be out fault too. For the purpose of this post, however, I was making the assumption that the service provide educated the prospect, set the proper expectations, gave some extra rope, circled back to try to get recommitment, looked long and hard and what was promised and what was delivered and then decided to stop rewarding bad behavior.
    • This is a great topic. I think it's important to remember the old axiom that no one person is indespensible...if one customer is "unsatisfactory," move on to the next. In a former career, I worked with a nonprofit that relied on the efforts of volunteers...and these volunteers had job descriptions and "contracts." And yes, it was possible to "fire" a volunteer. Either we place value on our own businesses and products - and demand that value be upheld and appreciated - or we don't. I won't keep a customer who costs me more in terms of time and effort than I can gain in monetary profit. I'd rather have as a customer someone who actually wants my product, values my product and refers other to it.
    • John, thanks for your clarification. But putting my customer hat on for a second instead of the other way around is why I am looking at this point differently.

      Everyone has a reason, why it is not my fault. Just stand at practically any register and think how you are typically treated while you are handing your money over. they can be talking to another employee, giving you your money back expecting you to count it, answering telephones, etc. And that is my point, we are so quick to pin the blame on the lack of understanding of customers that it amazes me. Has anyone here, worked with a terrible client, only to find out later that he was your best referral. "If you can satisfy Jack, you can satisfy anyone."

      I am not shy about providing an exit strategy and to rid or not even start with a customer if it is not a good match. But I amazed at the responses that you received. Heck, I will provide an exit strategy for all these terrible customers, send them to TerribleCustomer.com!
    • One must remember that even though they may be dragging down the value of your service, if you end relations with them on a bad note, that could potentially hurt the value of your services at a much greater level. If things are not working out with that customer, part ways; but make sure that when doing so you're doing it on friendly terms. Therefore, you're not burning any bridges with your exit.
    • I think it is a delicate balance between putting the customer's need ahead and making sure they are accountable without destroying their reputation, which in turn will affect one's own reputation.

      It's like being a parent in some way. You want the best for them but there is only so much you can do to beat some sense into them...lol...

      You can drag the donkey to the water, but to make it drink is another thing!
    • yes, i know this news... to rss!
    • There are many different levels of customers. Typically the ones that waste your time or insist on being counterproductive aren't worth it. Sometimes you have to hold customers accountable, as this blog says, and sometimes you have to Sack Clients For Improved Profits (http://www.actioncoach.com/blog_display_all.php...).
      John, I really appreciate your insights on business and social media. How could we get you to do a guest post on our business blog?
    • the comments on this post are very timely for me. We track our problems, questions as cases. When a customer has a large number of cases then we try to determine what is needed for the customer to be successful with our product. We make a proposal to the customer. I have not yet included the proposal as "requirement" to continue as our customer. We have a customer right now who is not cooperating. I have some ideas to position a last and final offer with a price tag attached to the efforts involved to transition this customer to another service provider. Shape up or ship out strategy.
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