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Have you ever sacked a client?

February 2, 2010 | By David Moore

Having just terminated a relationship with a client, David Moore considers the flawed client service model that sees the provider living on eggshells.

Right now I am feeling quite sick but strangely relieved. I’ve sacked a client.

I could have been nicer about it and I definitely should have done it earlier, but I still feel sick.

This decision represents at least a day of my life flying out the window for no discernable return other than angst.

You see, in the service game I mostly trade hours for dollars. So when I occasionally get to this point it usually involves cutting my losses for the bigger picture (i.e. less losses in persisting).

The amount of effort I have put into clients that they don’t pay for is staggering and, to be frank, stupid on my behalf.

There’s a raft of built-in “understood” when it comes to wooing and keeping clients. I feel like saying “more so in the computer business” but I’m pretty sure it just feels that way because that is where I am.

The problem with service is that some customers interpret the word as “I have you over a barrel because you want my money”. They don’t see it as “you are an expert and I am paying you to do something I cannot”.

The other problem with service is that, because you are trading time for dollars, you can’t spend too much time revisiting the same issue with any particular client. Humans tend not to change their mind all that often. If you find a client with a mind opposed to yours, you could do well to notice it early and politely decline. This is where I should follow my gut instinct more often. If I am honest with myself, I saw this coming.

Another problem with service is that it is not tangible and the results are entirely subjective. Finding the right pace at which to deliver the intangible is difficult. For me, when I find clients rushing me and pushing me down their train of thought I get flustered and tend to go into a default “satisfaction” mode (i.e. they seem to know what they want so I’ll give them that).This is dangerous. I throw away over 25 years of experience because someone I hardly know overheard their friends talking about something everyone should have.

I suppose this is a confidence issue. When I have more confidence and conviction than my client, then I allow myself to be an expert. If they have more, even if unfounded, then I don’t and can’t be bothered fighting it.

Don’t get me wrong, I am not pushing false confidence and arrogance. I am talking about acknowledging your strengths and detouring around boulders in the road.

When offering service in a complex industry, the lifespan of your relationship with the client is hard to predict. Let me give you an example as to why.

In the computer you are looking at now there are hundreds if not thousands of components, both software and hardware. Each of those components was probably created by a team. Let’s use the number 10 as a conservative guess at the size of the team. These teams come from many companies who have to communicate well to make things work. Conservatively speaking, there have been over 10,000 people provide input to its overall behaviour. Their level of care varies greatly. When that computer misbehaves, who do you call and who do you blame? When the problem can’t be fixed,whose expertise do you question? Do you believe what you are told? Why do you think your expert is lying to you? When will you end the relationship as a result?

I can’t provide you any pearls of wisdom to close this article. I am not questioning if service models are flawed, I am wondering how flawed. I’d love to hear your feedback.

Suddenly, I feel like I am five years old and in the playground telling a friend he’s dropped because I heard he was going to drop me. I’ll get over it…again.

David Moore has 25 years experience in the computer industry and is now Principle PC Hater at ihatemypc.com.au.

Photo: Thrig

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  • http://www.creativecaravan.net Rebecca

    We abandoned a $250K project last year. The client asked us to sack our producer on the project and we had a moral objection to removing her from the project as she hadn’t done anything wrong, rather it was the client’s nerves about the scale of the project. (Two alpha females!)

    We felt sick (like you) then we felt proud. We stuck by our employee who we still believe in til this day and we saved our relationship with the client by not pursuing what was going to be a nightmare job. We have since worked with the client on other jobs with no ill feeling as we gave them plenty of time to find another supplier.

    We now only put male producers on jobs with this ad agency!

    We really needed the money at the time, but one year on, I still feel like we did the right thing.

    Interestingly, we did look at dropping our producer and finding someone else at the time, but after a few calls we realised nobody else was going to take a job with this client, so we felt vindicated on that level too.

    You’ll feel good about it. You did the right thing.

    [Reply]

  • http://www.enspire.com.au Fran

    David! Good for you.
    I have done this before. When clients get ‘toxic’ and expect the baby + the bathwater + the bathtub (or else)… it is draining for everyone in the company. More than that – it means that ‘nice’ customers pay. If you have just finished a conversation with ‘Toxic’ and then have to talk to ‘Nice’ it shows and so your relationship with ‘Nice’ can be tarnished.
    I find this liberating… because in all good and honest relationships it needs to have 2 way respect, irrespective of who is issuing and paying invoices.
    You have done the right thing for you, for your staff and for all your ‘Nice’ clients.

    [Reply]

  • http://www.thoughtware.com.au Sonja Bernhardt

    Interesting and good on you for sharing I imagine an issue many identify with and some wish they had acted earlier. I too often find the equation of what you in blind faith put in and put in and stretch to help a client is often not valued/appreciated or mostly overrriden by as per comments earlier by the clients toxic environments. It takes a brave and strong person to face facts and act accordingly and based on what you have said it certainly appears that you have. Feel proud and use all the revived energy in existing and new clients.

    [Reply]

  • http://ihatemypc.com.au David

    Thanks Sonja, Fran, Rebecca,
    My mood has been boosted by your comments.
    Can we wave a magic wand and prevent this for ever and ever?
    DLM

    [Reply]

  • The Mikester

    Life is too short, there are too many deekheads, the world is changing fast, we have mothers giving booze to their 5yr old kids…what hope is there for the “moral”?

    Future pace what will happen, if the shite hits the fan and you can hack it then do it. If not, then cut and run the sooner the better, but be clear about why you’re doing it.

    All comes down to time and risk management, be a man of principle, chill and go swim with whale sharks…enjoy your mofo life!

    [Reply]

  • http://www.bigrivercreative.com.au Rob Fraser

    great article, and resonates with me at the moment as we have just re-focused the business to seek out and service those who appreciate what we do, and are prepared to pay for it (after a period where we were a bit too quick to let anyone in the door). In my experience (and in our field of advertising and design) the smaller the client the more difficult the “service sell”, and often the upfront effort isn’t rewarded with an actual project going ahead, or if it does a nightmare can occur.

    sacking a client is an interesting dilemma…..I have always had a view that there’s a bad karma around doing this, and instead have tried to use the hindsight that comes from the bad experiences we’ve had over the years to pick them BEFORE they get too far in the door. This seems to be working and is all about making objectives, terms, costs etc all very clear before an iota of work is done. if anyone baulks at that early stage, read the signs and run for the hills.

    i don’t think the service model is flawed, as many companies have profited from it over the years (think IBM, the big accounting and consulting firms) but the secret is to match your business with the right group of customers, and having the confidence and clarity to know when the fit ain’t so good and walking away.

    [Reply]

  • http://www.imagesubstation.com Hamish

    As service providers we can sometimes slip into being task focused, rather than looking at the big picture with the client and asking them questions that will uncover real needs and problems. If we stop asking questions we’re no longer seen as a ‘peer’ by the client, just someone who is told what to do.

    I’ve made this mistake in the past. When I reviewed the situation, I’d let the value of the relationship decline in a bid to keep everyone happy – only doing what was asked. I can’t say I’ve officially sacked a client but I’ve certainly parted ways with organisations that simply wanted a yes-man instead of building a partnership.

    Are we selling a service or value?

    We need to watch our mindset, we should be exchanging time for value, not simply money. If there’s little or no value achieved on a project or task, however small, in the mind of the client we slowly become a ‘provider’ instead of a ‘peer’. Unfortunately we also become a price driven commodity in the process.

    Providers are expected to ask how high when a client says jump, a peer will stay seated and first ask if that’s the best action.

    [Reply]

  • http://gravitygarden.com/build-customer-loyalty/index.html Gravity Gardener

    Continually trying to keep the customer happy without properly managing expectations can be counterproductive and even more damage to your business. There are times when saying no to the customer may be a better way to keep them happy and your team from imploding.

    Managing the customer is not always about giving in to every demand and sacrificing the company principles and resources where it does not make sense. Managing client expectations and delivering to those expectations is the art of customer relationship management.

    Although a customer is critical to any business, it can be a diverse and difficult animal to tame. Customers can make demands on the organization that cause your team to become underappreciated and resent the customer relationship over time.

    It is important to service the customer needs but not at the expense of the business and its core competencies. There will be times when promises are made that cannot be delivered upon which will cause more damage to the relationship than if the answer was no in the first place.

    http://gravitygarden.com/build-customer-loyalty/customer-retention-strategies.html

    [Reply]

  • Anonymous

    Hey,

    David Ogilvy once sacked Rolls Royce and told them there cars were crap to boot.

    Now that takes some serious balls.

    Can you imagine an ad agency doing that today?

    I don’t think so.

    [Reply]

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