Great Client Retention hints and tips

Have you listened lately?

http://bit.ly/KSgtyr

Calling Your Clients

 Let's get real here for a moment and acknowledge that the holidays are upon us.  That crazy time of year when everything seems to annoyingly show up on the 'to-do' list.

A very wise businessman once shared with me that if a fire destroyed his warehouse, it wouldn't matter.  If a fire destroyed his delivery trucks, it wouldn't matter.  BUT if a fire destroyed his client files, his business would be destroyed - finito - ended - finished!

There is only ONE top priority for all businesses to act on this fall season: CLIENT CARE

1) BACK UP CLIENT FILES - if you use a web CRM system of any kind, back it up.
2) BACK UP all client files that are resident on your computers! One client lost a list of 1600 names and with it future business. 
3) BEGIN - calling an established client who did business with you this year - Start with those that signed up with you in January and work your way through the year.
4) SAY THANK YOU to each and every one! 
5) ASK QUESTIONS on how you can help them achieve their business goals for 2012.  You may not be the one to satisfy the request, but if you refer them out, you would be surprised on how well they remember you.
6) BE HAPPY you have clients you can call to say thank you. Let them know how terrific it is to work with them!

Our businesses are built on the loyalty of our clients.  Loyalty is built via relationships that are active and have a feel good factor to them.  So pick up the PHONE and reach out and touch your clients.  They will appreciate it.

Any further questions - contact me and I will be happy to answer your question.
Laurelle Johnson
Strategies for Growth

Steven Jobs

May he rest in peace.  He will be missed.

Consolidate your base revenue with a
‘cradle to grave’ client retention program

A 5% reduction in customer defection rates can increase
profitability by 25-125%

Clients are challenged to maintain their profitability. They want
consistent, trustworthy vendor relationships that become an extension of
their infrastructure.

At Strategies for Growth we work one-on-one with your Business
Development Team members to create strong client relationships with
their clients to

• Create and implement a client-centered road map that gives your clients a strong sense of trust and the knowledge that you understand their business almost better than they do.
• Work with your team members to solidify and stabilize existing high yield accounts for maximum sales and profitability
• Customize a process that accommodates the individual sales style of each Business Development Team member. It becomes organic and part of ‘just the way we do business.’ We reinforce what works best, creating the best-in-breed business development team talent. 

E-mail us or call us at (818) 512 6477 and share your biggest client challenge: We will give you one immediate idea on how to handle it and convert the client to your biggest fan.

The Embedded Strategy

"Embedded" used in a sentence:   "Thick cotton padding embedded the precious vase in its box." 

So what is the embedded strategy?  Think of your client as a precious vase and your company as the cotton padding.   The strategy calls for you to surround your client with positive experience of  your services and keep out the competition.  It pretty simple. 

Clients enjoy consistency. Clients enjoy ease of use.  Clients don't really want to change vendors - too much work for them in an already stressed working life. But if you are not around and I mean SURROUND/SHOW UP/FOLLOW UP, you will be  displaced so fast you won't even know what happened.

Are you embedded with your stellar clients?  Are you familiar with their growth goals and deployment plans.  Are they going through a particularly difficult time and need what you provide to support them through this bad period? 

As a embedded vendor you get a chance to learn which direction the company is going - expansion or contraction, international strategy, long-term or immediate goals, etc.  Often you are invited to a portion of the planning meetings to contribute!  This is a great result of the embedded strategy. 

Think of the competitive edge this gives your company!

Here's the thing, when you show up at your clients place of business, they recognize you.  They welcome you as you are the bearer of problem-solving, money/time saving solutions that translate to their bottom line. They want to talk and laugh with you.  So why not show up?


Never hesitate to embed yourself with your client and surround them with thick cotton padding.  It will pay off for both of you in the process. 

For more information on how to create the right Client Retention Strategy for your business, contact us at:   laurelle@laurellejohnson.com

 

Yes! There are five key ways to keep your clients

I have been reading and reading about how customers in today's business environment move from vendor to vendor with a drop of a hat.  No one seems to have a clear idea, but my theory is:  buyers mirror their dating habits. And the younger generation is into 'hook ups' not relationships.. 

But the truth is the truth:  humans are unpredictable.  One day it's the Beatles the next it's The Rolling Stones.  What is a service provider to do? 

I ran across and article by Jim Billington in The Harvard Management Update.  Although written in 1996, it still holds some tried and true ideas that still work today. 

So break out your CRM files and: 

1.  Identify Core Clients: who loves your service and why?
2.  Measure what matters:  Measure your individual customer's satisfaction not  the 'market satisfaction
3. Analyze defections: Why did they leave - only the truth please
4. Mass customize: How can you service each client according to their specific needs 
5. Learn to meet unspoken needs: Need to understand what makes the relationship tick

 At Strategies for Growth we work to consolidate core clients, train and support our clients in the development of client relationships to insure steady revenue streams for company growth and profitability,

There is only one boss!

Keeping the Good client Good.

"There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else." - Sam Walton

Customers are fickle, fickle, fickle.  They jump ship at the drop of cell phone and never look back. Which begs the question, how do you keep your customers loyal?





Answer number one: keep the value of your services foremost in the mind of your clients.

How do I do that you ask?  Here is an example:

During a review of their client list, the managing partner of the law firm, pointed out an account he decided to 'forgive' the outstanding invoice.  It was $6K worth of legal work for the wife of a top client.

I suggested that instead of writing it off quietly and feeling frustrated by loss of the fee,  he could contact the client/husband and let him know the law firm was forgiving the debt.  It would buy good will and show the customer the value of a strong relationship between top client and the law firm.

The managing partner's eyes lit up at the prospect of  the 'miles of good will' he would earn and strengthen the exiting relationship with this client.

Two weeks later, the managing partner relayed that his top client was extremely touched by the gesture and handed the firm another $250k in legal work.

How do you reinforce the value of your services to your best clients?

Screaming Mimis and Chatty Cathys

Do you give nicknames to your most difficult clients?   I have a client who does.  She assigns names to her clients as it tends to relieve her stress. Monikers such Tweedledee and Tweedledum, Clueless, Obi (obnoxious) and Nobi (knows nothing) and the list goes on.

With the Good, the Bad and the Ugly clients, it's all about relieving the stress.

I use Screaming Mimi to describe the client who always likes to complain at the top of their lungs.  They tend to be a bit elusive, irrational and it usually has nothing do to with you or your company.

I use Chatty Cathy to describe clients who have nothing better to do but take up your time with meaningless chatter.  All designed to torture you slowly, word by word, with a monologue that has nothing to do with the service or product you have provided to them.

So how do you get them off the phone and minimize the flotsam of feelings they leave behind?  Aside from just plain hanging up, gently interrupting them with a request to 'continue the conversation' at another time usually works. They are going to feel privileged to now have an appointment to complain versus just an impulse call.

What do you do to get them off the phone?  Comments most welcome. 

Clients want the "What's in it for ME" factor

Do you know your  'what's-in-it-for-my-clients factor'?  If not, get to know it intimately, inside and out, upside down and sideways and be able to recite it in your sleep.

Fact:  The longer a company is in business the more they get away from knowing, understanding and explaining the 'what's-in-it-for-my-clients' factor.

SFG asks our clients a key question during the intake process:  What do you offer your clients?  This allows us to look at what executives or business owners think they offer their clients. More importantly we learn how they present themselves to their existing and potential clients. And generally they don't articulate it well.

No surprise to us when the UGLY client category has more names than the GOOD category.

Solution Suggestion:  Ask yourself what you can reasonably deliver to your potential and current clients that align with your current resources and personnel. Then stick to that concept.  Stay focused and repetitive and state it clearly to your clients in terms that has meaning for them.

Example:  SFG helps you identify the Good, the Bad and the Ugly clients of your business.  We work with you to convert the Bad to Good, fire the Ugly and create a good client program that keeps the cash flow positive.

So - What in it for YOUR clients?

What type of sales person do you need?

Collaboration with clients is key

Successful entrepreneurs seem to repeat the same statement over and over again in their 'how-I-did-it' speech: "I was so lucky I hired the right person for..."  Hiring the right people is the biggest challenge of any business, but more so for start-ups.

I ran across this article on hiring the right sales person at the right stage of growth. It describes not only the dilemmas of a start up, but every business who has a need for professional sales personnel.  Bottom line, listen to your clients. They are your best guide for hiring to their needs. 

Enjoy the article. 


bit.ly/aWVOir

Breaking Up Is Hard To Do

'Breaking up' with a toxic client is hard to do.  You have resolved to get them off your 'books,' they are not worth the emotional stress, time or money, but you just can't seem to cut the cord.  

"How do I actually do it?" is the question most often asked by my Client Retention Program clients.  There are no pat answer, but there are effective ways to politely break off the relationship.

Prepare for the conversation by scripting the main points you want to make, be seconded on the phone or in person with someone who is on your side and stick to the facts.

In preparation:

1) Review the contract:  Were the terms and conditions met by both parties?  If there is a discrepancy on your side, can you fix it quickly to meet the terms of the contract? Prepare your conversation by stating how you met the terms of the contract.

Ex: Deadline request was met on such and such date as stated in statement of work.

2) Know your facts:  During difficult conversations with difficult clients, nothing speaks louder than facts.  What are the relevant facts that can be discussed to bring the relationship to positive closure?

Ex: Client was non-responsive to phone calls or emails.  State directly the dates of those phone calls and emails to show the lapse in response from their point of contact or other personnel. 

3) What business result do you want by terminating the relationship? Determining the outcome that is aligned with your business objectives helps keep you on a steady course.  Ugly clients often throw you off to give them a form of control, especially if they begin to realize their culpability.

Ex: Objective is to recoup lost revenues, but client refuses to pay anything as they don't see how your services helped them.

What gives you strength during these conversations is being 'seconded' by someone on your side.  A semi-neutral person who understands your business, is briefed on the facts and can interject reason in the discussion should it get heated.

Top 3 Ways to Fire the Client From Hell*

A large part of my practice is creating strategies to help professional service firms fire their "Ugly" clients. When seeking the payment of an outstanding invoice, it is better to be "two on one." It keeps the focus on getting a check versus a disintegration of the conversation. Having played the role of the 'second' for my clients, I find these tips dead on.

Re-printed from an article at InsideCRM.com*

1) The one who's never satisfied: Even if you come in under budget and over-deliver, this client just isn't happy with your work. He may have something in his mind that he just can't communicate to you, and when you don't deliver this idea that lives in his head, he's disappointed.

How to get out: Ask the client to clearly describe or sketch out what he's looking for, or even send you an example. He may want a product that looks like his friend's, but he's afraid to say so. If you're already done with the project and you've done a great job, don't sweat it. Make it clear to the client, citing any agreements that you've made, that you conformed to the scope of the project and delivered exactly what he asked for.

2) The client who wants you to be something you're not: Some clients have a clear idea in their heads of what they’d like to see from your work. Often, this is good news, but if their specifics don’t line up with the way you like to operate, you may end up butting heads.

How to get out: To reason with this client, you can explain why you prefer to do things the way you do. After all, you're the expert. If he simply doesn't understand or refuses to accept your methods, it's time to cut ties. Explain to him the problems that his requests create for you and let him down easy.

3) The know-it-all: The know-it-all thinks he understands how to do your job because last weekend, his cousin showed him the basics of the computer program you use. Of course, he doesn't realize that he needs your expert skills to use this tool to do the things he really wants to do. He'll tell you exactly what to do and how to do it, turning you into a production house instead of letting you do what you do best.

How to get out: First of all, do your best to remove any references to your name or company on work you've done for this client. Why? Because he'll probably try to tinker around on his own and completely mess up your work in the process. Then, stop the project, get caught up on invoices and give him whatever you've done so far. He'll probably hand it off to his cousin to see if he can finish it.

Strategies for Growth works with service companies on creating Client Retention Programs designed to convert Bad clients to Good and fire the Ugly with an eye on increasing the bottom line. 

*pending reprint approval from InsideCRM.com from their article "Top 10 Ways to Fire the Client from Hell."

The Price of Bad Service

"For two years, FreshDirect stopped soliciting new customers to work on better serving its existing patrons. That strategy seems to have paid off: A loyal core of repeat customers — about 45,000 to 50,000 in all — now generates two-thirds of the company’s revenue. Richard S. Braddock, chief executive, reports that the company had its first profitable year in 2009 on revenue of $250 million and he expects the company’s 2010 revenues will rise to $300 million."

Reprinted from the New York Times, Thursday August 19, 2010 by Jessica Bruder

I am constantly reminding my clients that revenues primarily come from their existing client base.  How they treat and service those clients who opted to work with them in the first place is key to that magic in business called "repeat revenue."

This is why Strategies for Growth exists. I wish to beat our own drum a bit here. We create Client Retention Programs designed to keep your good clients repeat customers, convert the bad to good and fire the ugly. Our success rate has been an overall up-tic in revenues of over 250%!

It is more cost-effective to maintain and resell your existing client base than to constantly try to acquire new customers.   For a review of how Strategies for Growth can help increase revenues from your existing clients, give us a call at 818-512-6477.

Off on vacation!

We all know the value of vacation time  We dream about where we are going, we make plans, book hotels, and meet up with family and friends.

The Europeans know the value of vacations as they have a government-mandated, paid 5 weeks time off a year.

It means time to slow down, let the body relax and mind think on stuff other than our daily lives. When it comes to an end, we pick up, with more energy, our lives as we know it.

One of my coaching clients just returned from a month's vacation and sounds completely different. She has a lightness to her voice from having regained her sense of self and has a new perspective on how to move forward in her life and business. Plus her great sense of humor has returned full force.
 
So before I return from vacation, rested and renewed, I wonder what the rest of the world does to  maintain the sense of renewal and carry it forward until the next vacation?

Quicknote:  "No Touch Monkey" by Ayun Halliday is the funniest travel adventure book I have read in a very long while.  High recommend reading it.

How would you do it?  Comments most welcome.

3 Reasons to Fire Toxic Clients - Part II

No more Toxic Clients!

Many times relationships start out OK, but then sour. Sometimes it’s easiest to just keep trudging along. If a profitable client is hard to work with it can be tough to say good bye to their revenues. But let me share why I think it’s good riddance:

1. They drain you emotionally. People who are mean, disrespectful, full of negative energy, etc. just eat away at our own personal happiness. Even if you like the work, or like the money, don’t overlook the drain of positive energy from your own heart and soul.
2. They are NOT generating as much revenue as you think. You may assume it’s clear, you worked 10 hours and got paid for 10 hours. But because of the emotional drain, you generally spend a lot of un-billable time doing things like: complaining about them, questioning your own skills, protecting yourself with excessive paper trails and backups, defending invoices, etc. All of this is taking you away from revenue earning projects.
3. They can ruin your confidence.  A toxic client can question your actions and tear down your self-esteem. You can start to question the quality of your work, your pricing, your behaviors. An entrepreneur, freelancer or business owner cannot spend time at this pity party.
4. You’ll be more productive without them. This is real reason to let them go. Spend the time finding better clients to work with. Clients and customers who respect you.

 Emily's post ended here with a personal note.  I wanted to weigh in here and encourage all business, small and large to look into their client base and make the difficult decision to identify and fire your toxic clients.

A bit about our guest blogger: Emily Brackett is president of Visible Logic, Inc. Established in 2001, Visible Logic is a graphic design firm that works across all media—including web sites, logos, print materials, annual reports and book design. Based in Portland, Maine, Visible Logic builds complete
branding systems and designs individual projects for clients across the U.S. You may reach Emily or learn more at: www.visiblelogic.com

Toxic Clients: 3 Reasons to Fire Them

I ran across a fantastic blog that said it all so well that I rushed to gain permission to re-blog.  I have cut the article in two parts for easier reading. Here is Part 1.

A bit about our guest blogger: Emily Brackett is president of Visible Logic, Inc. Established in 2001, Visible Logic is a graphic design firm that works across all media—including web sites, logos, print materials, annual reports and book design. Based in Portland, Maine, Visible Logic builds complete
branding systems and designs individual projects for clients across the U.S. You may reach Emily or learn more at: www.visiblelogic.com

Unfortunately, I am currently in the midst of “separating” myself from a toxic client. And while this blog post is not about design, it is about being a small business owner, and I had to write it.
First of all, what makes a toxic client? There can be many variations and each is unique but there are usually early red flag warnings, followed by one or more of the following:

• Disrespectful behavior. Any client relationship should be a partnership, not a stomping ground.
• Pays late, disputes bills. If you are providing a professional service you should be paid. Someone who constantly questions your bills are questioning the quality of your work or your honesty in billing them.
• Questions your skills and expertise. If you are providing a service you are getting paid to help someone using your specialized experience. If a client continually questions your decisions, they don’t feel comfortable about your level of expertise.
• Undermines projects. When working with a  client, there should be a mutual goal of creating something together. For us, that means a web site, a logo, an ad, etc. We should be helping each other. When a client becomes an obstacle rather than a resource, there is a problem.

The first question I always ask my clients is:  How many toxic clients do you currently have and what are they costing you in time and revenue?
 It takes guts and courage to fire a toxic client.  How do you do it? Think about finding a colleague or consultant to 'second' you in your decision and communication with the client.

Second Part of blog next week.  Stay tuned. 

Laurelle Johnson
Strategies For Growth
The Good The Bad and The Ugly
Client Retention Program
laurelle@laurellejohnson.com

Client Retention Program

As most of my readers are aware, I have developed a  program called The Good The Bad and The Ugly Client Retention Program.  Focused on service firms that are in need of a client management program that is NOT computer-based, GBU creates a process to convert the bad clients to good, manage the good with first-class service and fire the ugly.

The reams of information on good client relationships, managing those relationships, and keeping those good clients fills a giga-bite-plus of internet space. Popular CRM software cannot classify the organic nature of client management.  This huge gap leads to mis-communication, bad feelings AND loss of revenue.

Client relationships are built between human beings. A Client Retention Program is a execution plan.  Plain, simple and straightforward, it allows a firm to deploy precious  resources to the good, convert the bad and fire the ugly.

Time to ask your service firm the following questions:

How do you manage your clients?  What relationships do you actively maintain and why?  What revenue is stuck behind a difficult relationship?

Feel free to comment on your current state of clients: The Good, The Bad and The Ugly!

Book Recommendation

Am reading a great book I picked up at a book fair for $7.00.  Brought it home and have been working my way through it voraciously.  I am terribly impressed by how these authors put into words that which is so challenging to us humans that we muck it constantly: communication with our clients.

The complexity of communications has ended up with muffling, bashing, confusing our clients and peers alike.  Communication is so complex that it's like walking a tightrope every time we open out mouths. Then we spend hours blaming ourselves for a job badly done!

Service professionals need to be able to really listen to their clients and help untangle the challenges of the business while offering solutions without minimizing or insulting the dignity of the client. This book creates such a road map of "how to's" so well I've made it my carry-it-everywhere-with-me book.

I have posted access to the book via Amazon link in the box at the left. Enjoy!

Just Listen

Finishing up Dr. Mark Goulston's book, "Just Listen" and am walking away feeling whole. Whole?

Being heard is key to the health of the soul. Communication is what links us in community and in intimacy.  There are two sides to any exchange: output and input. Listening is input.  Talking is output. Listening to others feeds the soul in ways we regularly forget.  Listening eliminates loneliness, isolation and a host of other non-medical aliments.

We turn to each other in times of crisis to be HEARD.  We turn to others to connect and to HEAR what is occurring in the lives of others that helps us feel better about our own world.  All through LISTENING.

I am refreshing my listening skills by reading Dr. Goulston's magnificent book,"Just Listen."  A 2010 objective for myself is to LISTEN more, talk less.  This will allow me to hear the issues of my particular set of clients and work with them more effectively to find the required solution. To listen is to learn. To listen is to connect deeply.  To listen is to build trust.

So this months' pick is "Just Listen," by Dr. Mark Goulston.  Easy read, well written and immediately applicable in everyone's day-to-day world.  Enjoy!

Lunchtime Dreamers

I worked for a busy Fortune 500 corporation from the age of 24 to 40something.  I rarely looked up from my desk from 7AM-10PM that the job and promotions demanded.  But on the weekends I turned into the outdoor adventuressI wanted to be in high school.   Why did I not pursue this path full time?  'Cause of the money honey.  There was NO money in adventuring in those days.  You took a vow of poverty and that was that.

Well I like to inhabit nice, clean places and wanted to own a home of my own. So off to work I went on Monday mornings, tired, exhausted from the all-night driving when coming back from a high energy weekend in some distant California outpost.  I kayaked, skied, climbed, backpacked every weekend and had a blast.

During the week, I ate lunch at my desk and plotted with my travel agent adventure buddy where to go next.  I wished I had had the internet then to keep me company.  I could have viewed all manner of places with out leaving my desk and reduce my stress. Check this link out and you'll know what I mean.

http://bit.ly/cWUI72

Happy Lunchtime Dreaming!