January 12, 2000

Building loyalty in clients

It is a well known truism that client loyalty is the most critical feature for professional service firms. To start this auspicious year, I would like to examine one element of client loyalty: client confidence.

What can build confidence and what can erode it?

One sure way to erode confidence is to be perceived as unfair. This perception can originate a number of ways. Let us just focus upon fees for a moment. Fees that are high have no connection with fairness or unfairness -- unless the service that is linked to the fee is deemed to have low value.

So firms that are concerned about high fees need only worry that their service does not match the value the client expects for the fee. Another way to erode confidence is to be perceived as unreliable. This perception stems from a variety of actions or non-actions, such as calls not being returned promptly, incorrect information being transmitted, tardiness and missing information.

Now let us discuss ways to build confidence. First, it is vital to remember that making a mistake, giving incorrect information, or not returning a call will not impact confidence in you, provided three factors are present:

1. It is not part of a trend.
2. You do not express weak excuses.
3. You make a strong and sincere effort to correct the situation.

Finally, we should review the things you can do to strengthen client confidence -- even when things are going well. One method is to make it easy for clients to provide feedback. Many principals think, Our clients are always free to let me know if there is a problem. Yet the reality is that client resentments build up, small incident after incident. By the time the president gets to hear about the problem, it has grown to the point where the client is angry and vows never to use your services again. So by that time, recovery may be impossible. This implies that one needs a mechanism to gather feedback.

I have three suggestions:

• One is to empower project managers to regularly solicit feedback on both technical and non-technical levels.

• Secondly, department or division managers and even the president should call current clients during an on-going project on an occasional basis and invite feedback.

• Finally, engage an experienced interviewer to conduct an annual client survey. My preferred method is the telephone survey which gets valuable information, does not inconvenience the client and assures you of close to a 100 percent response.

Getting negative feedback need not trigger a panic attack. Think of it as a time to shine. Shine by showing sincere concern, shine by taking appropriate action and shine by taking quick remedial action. If the solution demands research, keep the client informed of your progress even before you are able to draw a conclusion or have a definitive answer.

Feedback is essential; it is the foundation of successful relationships.

Previous columns:

• 2000: A prelude to long-term change?, 12-08-1999
• Ten tips for taking charge of work in the new millennium, 11-10-1999
• Mentoring: employees and management both win, 10-13-1999
• An introduction to negotiation, 09-08-1999
• Take the project management quiz, 06-09-1999
• Planting the seeds of team loyalty, 05-12-1999
• How to fill a leadership vacuum, 03-10-1999
• Communication pitfalls: reviewing the basics, 01-13-1999