| Suggest You |
Hubs | Hubbers | Topics | Request |
| #1 in Business | Subscribe Email Print |
|
You are here: Home > Business > Sales Management > Avoiding the Customers You Don't Want: The 10 Warning Signs of Trouble |
|
Suggest You - Avoiding the Customers You Don't Want: The 10 Warning Signs of Trouble
Networking Your Way to Profit - Part 3 'Your Hidden Marketing Opportunity' pect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work.Do you have a business card? What does it say about you? About your company?Could anyone pick it up and know instantly exactly what you offer and the benefits they could enjoy by doing business with you? If your answer is “No” you are missing a vital marketing opportunity…Having said that, the content of your business card depends very much upon how you use it. If you only ever present it to clients or prospects you’ve spent some time with then the minimum amount of information is all you need. That’s because these people already know you and the purpose of your card is purely to serve as a reminder of your contact details.But if you attend business meetings, networking with other business people then your card has to fulfil a completely different purpo 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out t How to Write a Complaint Letter That Gets the Result You Want The truth is, not all customers are equal. It's common knowledge: to succeed, we must concentrate our marketing efforts on the customers who are most profitable.Have you been double-charged on your credit card? Did the poor service at that restaurant ruin your special evening? Were the flowers you ordered delivered to the wrong address? Then it’s time you write a complaint letter that gets the situation resolved to your satisfaction.Make your opening sentence a positive one and get to the point in the first paragraph. The flower shop doesn’t need to know this was your grandmother’s 90th birthday, but they do need to know that you’ve been their customer for five years. Beginning on an upbeat note will let them know you want to continue doing business with them.Tell your story precisely and in as few words as possible. You don’t need to tell the restaurant that you were hosting a business dinner with your new boss, but I believe that the obverse is true, too. At the other side of the profitability bell curve is that pool of customers who drain our time, talent and energy, customers so enervating that they are not only not profitable, they represent real losses in money and momentum. I call these potential customers the Pain-In-The-Assets or PITA Prospects. Fortunately, you can frequently identify them within the first ten minutes of conversation. While the following observations may be drawn from the field of marketing consulting, I’m sure you’ll recognize (perhaps with a sigh) some of the tell-tale danger signals all professional service providers inevitably cross in their careers. 1) “I’ve tried X, and X just doesn’t work.” Advertising. Websites. Databases. Your would-be customer insists that they’ve already tried a common, business-tested tactic and found failure where others have succeeded. Instead of analyzing why it went wrong, or making the effort to learn from their experience, they assume the tactic itself is flawed. So they reject your very reasonable recommendation and move on to some other “magic bullet” solution. Which, given their impatience, is also likely to fail. 2) “My cousin’s nephew will handle the coding.” Ah, a two-fer danger signal. First, a desire to “save money” by consigning important work to an amateur (plus an implied disrespect for real, professional expertise). But as an added bonus, you get the specter of family politics. Any criticism on your part, no matter how diplomatic, becomes an assault on a loved one. Run! 3) “I love the way Microsoft does this.” Yeah, me too. And if I had a loose $250 million lying around, I’m sure that’s the direction I’d go as well. But I don’t, and that’s one of the reasons mere mortals, such as myself, have to do things differently. More modest resources demand alternative methods and adjusted expectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves. 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out th Putting Some Muscle in Your Time Management System lure where others have succeeded. Instead of analyzing why it went wrong, or making the effort to learn from their experience, they assume the tactic itself is flawed. So they reject your very reasonable recommendation and move on to some other “magic bullet” solution. Which, given their impatience, is also likely to fail.When I ask people what kind of time management system they use, and we talk about the effectiveness of it, I'm often amazed at what I see.Frankly, many people use the worst system they can for their needs but simply use it because it was available to them at a price they could afford, or they liked the color of the cover, or the software came with their computer, or they spent so much on their PDA that they feel like they should be using the time management system on it.I advise people to use a time management system that works for them. If your job is a big picture job with lots of planning and project management, you'll probably want a time management program that provides a week-at-a-glance or a month-at-a-glance so you can see deadlines and due dates. If you h 2) “My cousin’s nephew will handle the coding.” Ah, a two-fer danger signal. First, a desire to “save money” by consigning important work to an amateur (plus an implied disrespect for real, professional expertise). But as an added bonus, you get the specter of family politics. Any criticism on your part, no matter how diplomatic, becomes an assault on a loved one. Run! 3) “I love the way Microsoft does this.” Yeah, me too. And if I had a loose $250 million lying around, I’m sure that’s the direction I’d go as well. But I don’t, and that’s one of the reasons mere mortals, such as myself, have to do things differently. More modest resources demand alternative methods and adjusted expectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves. 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out t Project Management - I Want It ALL ectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves.The knee-jerk response to prioritizing requirements is to mark everything as a must-have . “I need everything before the product becomes generally available. I want it ALL!” Give me a break.Granted, if a requirement is written in the SRS, then it must be because you want it. But the reality is some features are more important than others and a good product manager can tell them apart.If everything is high priority, then there are no priorities. Let me repeat that statement once more. If everything is high priority, then there are no priorities.Unless this is your very first software project, you know that time is always a constraint. Combine an overly optimistic project schedule with a list of requirements that aren't prioritized, and what do you get 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out t What's Partnership Got To Do With Leadership? offee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you.Welcome to the second in a three-part series on Leadership, which we define as "holding the Vision, causing Partnership, and holding people to Account".Last time we explored the area of Accountability. Now we are going to take a look at Partnership, which we define as: ‘holding oneself to account for the success of each member of the team'.But What do we Really Mean by ‘Partnership'?Perhaps you've heard the story: There was a man who wanted to see both hell and heaven. He goes first to a land where all the people have delicious food to eat. But they have spoons longer than 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out t The Best Branding Strategy: Make a Real Connection pect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work.What is it that makes some brands connect so well with their audiences? We could learn something about building brands for organizations by also asking,What is it that makes some people connect so well with other people?In many ways, organizations are like individuals. Each has its own specific "fingerprint" -- strengths, character, and personality -- that makes it unique and recognizable. It's how we get to know our friends and understand what it is about them that we like.In a world where no one has time to carefully weigh all available brand options, this fingerprint acts as shorthand to help us sort through the maze, a very real point of value at a time when it is increasingly difficult to tell one product or service from another. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out the proposal your prospect just absolutely had to have in the morning. But the initial deadline for the company’s decision has long passed and you can’t get straight answers from any of its representatives. Okay, so maybe that’s the way business goes sometimes. But if you eventually do get the work, guess what? The original deadline for deliverables will remain in effect, even though there’s now half the time to get the job done. Consider this bad start an ill omen. A final observation. To some degree, all customers present their own unique challenges. Part of our responsibility as professionals is to rise to these occasions, to deliver that extra edge of service or brilliance or persistence our clients may require. But when the relationship begins on faulty grounds – when the customer shows carelessness or lack of respect for your experience and expertise – watch out and reconsider. It may be time to cut your losses and move beyond the PITA prospects to serve the customers who deserve your best efforts.
HTTP = HTML link (for blogs, profiles,phorums):
Related Articles:Time To Revamp Your Visual Identity? Three Easy Steps to a Brilliant Fundraising Calendar 5 Ideas for Writing Effective Sales Letters
|