I lost a client today. No, this loss won’t really affect our bottom line. (OK, everything affects your bottom line, but this client contributed less than 0.0X% to our gross.) But, that’s not the point. I lost a client today. It’s personal. It’s because of something I did not do- not even something I did. Something I thought was helping the client- but obviously, I was wrong.
This client is a small business. So small that Mitt Romney would have really dismissed the gross revenue of the client as inconsequential (since it was just a wave of the hand that dismissed his $ 365K of speaking income he obtained last year). Not inconsequential to them. No way- every dollar counts for this client. It covers their living expenses and lifestyle, as well as the costs of doing business. Not one dollar would this person ever dismiss (trust me when I say this).
I provided this client advice. How to grow his business. How to view each new opportunity. What training he and his wife need to get where they want to go. I helped them set up their company, explained what records were needed, how to do the bare minimum of accounting (and shortcuts to make those entries facile), and keep the most amount of money they could (i.e., minimize their taxation).
I did not meet with this client every day or every week or every month. I did meet or discuss business and other matters every quarter. I took every call he ever made. I reminded them to submit each tax report. (No, I didn’t do them for them; they could save money by doing it themselves, once they got the hang of it.) We computed their corporate and personal taxes, adjusted the entries in their bookkeeping records to comply with the law, and tried to make things work as automatic as possible.
He once complained about our pricing. He looked at the top line- where the bill requested $ 1200 for about 6 months of effort. But, if he paid the bill in ten days, the amount he would have to pay was only $ 800- the same amount he paid for our services for the same period the previous two years. And, we explained that to him.
And, when there was a problem with his tax submissions, we went to bat for him with the IRS and/or state agencies. We even found out that there was an error on a few of his state submissions (when the agency complained he underpaid). It turns out that he failed to properly compute the credit to which he was entitled and overpaid unemployment taxes- a lot. And, submitted the request to the agency for the refund.
And, then, this morning while meeting with another client, I received an eMail from him (no call). In it, he wrote:
“We couldn’t have gotten off the ground without you. Unfortunately I think we need to migrate to a firm with people that can help explain things on my level for the day to day bookkeeping and accounting”.
You see, I never volunteered our services to help him weekly. I thought he was doing fine- he never told me otherwise.
I could have had our lower level people work with him daily or weekly. But, I didn’t want to waste his money. And, I didn’t give him the choice by not offering what he really wanted (but obviously was afraid to ask of us- maybe he thought our lower level people would be too expensive, too.)
Don’t be afraid to ask- your client may really want that service, even though you think they don’t want to spend the money.
So sorry Roy. That’s terrible that you lost a client. A good lesson though – never assume anything. It’s like a broken relationship really – which can result from either too much love (aka smothering) or not enough…*sigh* so complicated!
Janine Ripper recently posted..Allergy diet
You’ve added the eloquent corollary. That narrow bridge between too much and too little…
Thanks, Janine.
Hi Roy! I am finally getting back to reading your blog – I have missed it! I am sorry about the loss of your client, but as they say, we all learn from our mistakes if we are willing to. And you are, which is what probably makes your company a success. You didn’t just write that small business off because they didn’t add to your bottom line, but you really thought hard about what you could’ve done differently. Good for you. And now you know. And I highly doubt you will lose the next client for the same reason. Have a great weekend ~ Suerae
Suerae Stein recently posted..Fab Foto Friday – The Sky
Welcome back, SueRae.
Yes, I did learn. It still takes lots of listening to insure you don’t push too hard- or (obviously, here) not enough…
Thanks for your comments.
Roy
Personally, I think this was a Catch-22 for you. You were sensitive to his hyper-price sensitivity, which is a very client-centric approach.
Conversely, if you had offered a weekly option, he would have likely balked – the same way he did to your $1,200, 6-month bill (roughly $6.67) – that price is a steal!!!
Unfortunately, I think this client doesn’t realize what they’ve lost….
Tor Constantino recently posted..Our Pregnancy Update – Week 18
Tor:
I think we are all price conscious. To you and me, we may feel one price point. To Mitt Romney, $365K is chump change. To this client, another number.
It’s what makes the world go round. We still need to deliver the services the client wants. The question is whether that service is one we can and want to deliver at the price desired….
Thanks for the visit.
Roy
I’m sorry to hear about the loss of your client, but I believe that things happen for a reason. You delivered what you promised, but apparently he wanted something more. If all of us were psychic, we could meet our clients’ needs quickly. The reality is that we don’t have that ability and our clients have to let us know what’s on their mind. As the saying goes, “If not this, something better.” Your next new client will be awesome. 🙂
Lisa Kanarek recently posted..How to Keep the Promises You Make
I am with you on this, Lisa. And, while I am not psychic (and, without giving away another post in the queue, I am not pscho, either), I do try to be proactive. Obviously, in spite of my endeavors, I am not infallible. Darn that!
Thanks for your encouragement, too! You’ve dressed me up nicely…
Roy
Very interesting article, Roy. You said that this client once complained about your pricing…he was very tight with money. Did it occur to you that he is not going to “migrate to another firm” but instead he believes he no longer needs any help and wants to save the money that he was paying for your services?
I don’t think you should take this personally ~ You helped this business “get off the ground” and should feel good about that. You didn’t do anything wrong…he just wants to save money. He will not hire another consultant until he gets in trouble with the IRS (again).
Janette Fuller recently posted..Book Review: Facebook Ate My Life, And Other Poems
Thanks, Janette.
It could certainly be that way, but I am certain to be just a little more “inquisitive” with my other clients (as is everyone else here) after this experience.
Roy
Hey Roy,
Important lesson here for everybody. Sometimes we do all we can to keep the customer happy but something happens. The thing I can extract from your post is that when we have a potential client the first thing to do is to find out exactly what he really wants and if our offer is a fit or not..thus, more time, energy and..money is saved.
The loss is still a loss but at least you got a valuable lesson now and a new experience to share with us.
Wish you success with your next projects!
Have a great day,
Radu
Radu recently posted..3 proven methods to hurt your home based business
Radu:
You’ve clipped that nail squarely on its head. Thanks for helping to make the concept crystal clear.
Roy
Hey Roy,
Great story. I’m certainly not sorry for the loss of your client. It means an incredibly valuable lesson learned and a great reminder to go out and reconnect with every one of your existing clients which could result in significantly more sales than if this one client had checked with you and you provided the additional service. What an INCREDIBLE opportunity for you!
I’m also not sorry because your story has encouraged me to go out and reconnect with my clients to see what I’m not providing now that maybe I should be! Selfish, yes, but I think that’s why you shared the story.
Nicole Bandes recently posted..Tip 20 – Challenges or Excuses?
Nicole- that is EXACTLY why I shared the story. It reminded me to keep my ear to the ground and listen for the vibrations. Sometimes the words are never said. I wanted to share that so that I can be the last one to write such a story.
Thanks for the visit.
Roy
Lesson learnt! Don’t assume your client is wise even if he/she really is. It’s preferable to be a bit annoying than under delivering.
Gustavo| Frugal Science recently posted..5 tips for clearing your mind and learning better
Now you tell me, Gustavo!
Well, what a bummer!
Thanks for not allowing pride and ego to interfere with sharing your story about your loss and turning it into a lesson. Learned a lot from this one my friend, not just the lesson it self but of your character as well. (But I already knew you are cool like that 😉
My guess…he’ll be back.
Elise recently posted..Top 5 Things I’ve Learned From Networkers ~ The Bad Ones
Thanks for your kind thoughts, Elise.
And, yes, we do need to analyze and improve- all the time.
Roy
Hi Roy – Thanks for sharing this reality with all of us. It stinks, but yet as you have learned, we all can learn as well. Thank you for being humble and real to share this! I have lost customers when I thought they were thrilled.
Barb recently posted..My Personal Testimony Of The Biggest Act Of Forgiveness
Yes, Barbara, that was the reasons why I was willing to discuss it. To help others to never had another similar occurrence.
Thanks for your visit.
Roy
yes we always try to do . one day we will get succsess..
Thanks for your comments, Anna!
Roy
Hey Roy,
I am so sorry you lost your client. Sometimes we really don’t know what the clients want unless and until they tell you what they are looking for specifically. When I was working as an intern we were told that many patients will bail out and leave mid way but we shouldn’t be taking that personally. But I didn’t; when my second patient stopped therapy almost when we were reaching our goals; I cried my heart out.
But then, I got an email from one of my clients saying that he did like the therapy; but he saw no point in continuing.
So, there might be some who are not really happy with what we are offering, but I love how you explain the bigger picture! 🙂
Hajra recently posted..Will they call you over for a bloggers party?
Oh, I know that we don’t really say what we mean. After all, we do it ourselves.
I just feel I should know better and try to anticipate; I’ll take this as a warning to be a little less reticent (which, to those who know me, sounds ridiculous, of course…)
Roy
I wonder if something else is going on with this client. The fact that you got an electronic message makes me think there is a stressor that this was an easy way out for your client than talking about something embarrassing or difficult
Roberta recently posted..A Lesson from Hugo:
Oh, that would be true. We are “friends”. He is one of the clients that I took on (as I wrote on my blog) after I was told that I was not being fair to my friends- that I was not willing to provide services to them 9since I felt that was exploiting our friendship)- they saw it as they being unworthy of my assistance..
Thanks for the comment, Roberta.
Roy I applaud you for looking at this as a way to learn something. In truth this lesson can be applied to our daily lives as well as our business ventures don’t you think? If we just asked what someone we care for needed and how we can help; imagine the communication and relationships that would improve dramatically?
I appreciate you sharing this with us. Many would attempt to thrust blame on the client or say too bad for him and you really took a road of introspection. Well Done!
Bonnie recently posted..Lessons from a Jack Pine
Thanks, Bonnie, for your thoughts and considerations.
Roy
I don’t ever look at it as ‘losing a customer’ Roy. In fact, he is still on your mailing list and you might have other opportunities later down the road when his business does grow and he will need more professional help. There may be other programs or products that your company can highlight and offer him. But I certainly am glad that you shared this Roy, as it is a wonderful reminder …. ASK, don’t assume and ask again!
Lynn Brown recently posted..The Secrets to Writing With Your Reader In Mind
I only mail to current clients. No point in providing free services to those who don’t participate. The free service is available on the web, the blog, and via RSS from either.
But, you’re right, Lynn. Stranger things have happened.
Roy
Thanks for your transparency and willingness to share your learning experience. Using coaching type questions is a great way to open up the dialogue. Being proactive by asking our clients open ended questions gives them the chance to voice appreciation or concerns. Even something as simple as “How can I help you?” or “What is your greatest challenge right now?” can be all it takes for them to reveal what might be missing for them…and sometimes they don’t even realize it until someone asks.
Roy, I can tell you have a deep caring and show incredible responsibility with your clients…and I know from personal experience that those who strive to be top at what they do continue to learn and look for ways to improve no matter how long they’ve been at it. You truly care…that’s what this post says to me.
Tambre Leighn/coaching by tambre recently posted..It Simply Must Be…
Thanks for your kind comments, Tambre.
We always need to grow- ourselves and our clients. That’s the best course of action!
Roy
Normally when responding to posts, I do not read previous responses; however, this time I did.
Interesting how the views differed from being sorry for the loss to the lessons learned. Working as a team on projects the latter is the tool we used most often after delivery. I’m now contemplating the difference between client and project, sans the human quality of the obvious.
In retrospect, I’d say you did not lose the client. He bailed on you.
I agree, to some degree, PeggyLee. But, I still should have asked- he may still have bailed, but.. (Just because I can offer what he never vociferated, does not mean the lower cost service would have been low enough for his desires…)
Roy