Before you "Act Selflessly", Check Yourself

I was having a conversation with my business partner last week and we were talking about some cranky clients and what we could do to create a bit more harmony in the relationship.  I’m on board with that idea.  If you work in the world of client service, no one wins when the parties are out of sync.  Interestingly enough, those cranky clients typically correlate with low client profitability.  In other words, the client is cranky AND we are losing money.  Now that doesn’t seem like a great situation, does it?  

So we got to talking and identified some actions we could take to further “delight” the client as an effort to get back into alignment.  And then, once in alignment, we could revisit the fact that we’re losing money on them and discuss pricing.  It sounds logical but it’s a terrible idea.  I mean, it doesn’t sound terrible initially but let’s me convince you otherwise.

First, we are already irritated that we have an unhappy client. So, to lose even more money while trying to make them feel better is simply “heroing” to protect their “feelings”. That doesn’t work.  Second, we’re further irritated that there is no acknowledgement that we’re bending over backwards which perpetuates the frustration. Let me be clear, I’m willing to take our responsibility in what might be contributing to client unhappiness.  Whenever you’re at a spot that’s not working well, it is always, 100% of the time, a combination of both parties being unconsciously committed to being in that place.  Do not take my perspective as being one sided.  It isn’t.  So now what? Here are two scenarios:

Scenario A: 

Show them how committed we are to helping them. Rectify the relationship and then discuss how to get pricing in a place that is more of a win-win. 

I know this sounds good but it’s not in integrity.  What we’re really saying is that we’re going to show you that we’re a great partner, you’re going to see how valuable we are, and when you see that value, you’ll be open and ready to right size the economics of the relationship.

Scenario B: 

Propose raising your prices to what is required to serve that client.  Have an open and honest conversation about the issues.  Put a plan in place to remedy them.  Move forward.

While Scenario A might appear to be a logical approach, it very rarely works and isn’t in integrity.  I have never seen an unhappy client so blown away by over servicing them that they can’t wait to revisit price.  What I typically experience is no association whatsoever with work performed (that’s sunk cost) and only evaluating the current state moving forward.  Also, doing more work so that you can manipulate a future outcome (a price increase) is out of integrity.  It presupposes that I know why the client is unhappy and what is going through their head when thinking about the future relationship. And, I’m also irritated, so the fact that I’m going to spend more resources on an unprofitable client just further chaps me.  

The preferred approach is Scenario B.  The revised pricing and open conversation can happen in parallel.  Of course the client might terminate the relationship but you were losing money on them anyways and probably weren’t getting energy from it.  Alternatively, the client might bristle but it will at least bring the conversation to the forefront and force the client to assess how much they want to find another partner and realistically whether that partner will be superior as to justify the switching cost.  Either way, you didn’t try to “please them” so they would look favorably upon you.  You stayed in integrity and let the future unfold as it does.

You might have heard the term, “The squeaky wheel gets the grease”.  Well this is what typically happens.  A client is really squeaky.  You bend over backwards so they squeak less.  They continue to squeak.  You are frustrated because it’s always a zero sum game (one party loses and the other wins) but you don’t want to lose the client.  So you suffer.  The squeaky wheel gets what they want (in the short term).  

Don’t go overboard in trying to lubricate that squeaky wheel so you can be besties in some imaginary future.  State the facts.  Assert your recommendation.  And the squeaking will either stop of become a distant sound as that client moves on to squeak with someone else.