Retraining Clients When You've Taught Them to Abuse You (aka Preventing Costly Schedule Disruptions)

Rogue 24 is a new DC restaurant that is apparently so worried about no-shows that it has a two-page contract for would-be patrons. Their terms require payment for cancellations within 72 hours among other (obnoxious) things.

For some, the sense of exclusivity (and jerkiness) might actually be a draw, but last time I checked, restaurants were considered part of the "hospitality" industry and there is nothing hospitable about their approach.

I know a lot of CPA firms who are sick to death of clients not being ready for them when they show up for audit fieldwork. (This post uses audit as an example, but the concepts apply to consulting, website development, and a zillion other types of projects.) 

I can't blame a firm for being frustrated when the audit team appears at a company and the advance PBC (prepared-by-client) list has not been completed. It sucks. It's expensive and it's disruptive.

The auditors either leave with unanticipated open time in the middle of what is typically a jam-packed audit season, or they simply begin to "help" the client get ready. But in doing so without a signed change order, the firm will likely end up writing off the work. Or worse, the firm will later "bill and duck" for this work at high risk of angering the client. 

And next year, when the client is not ready again, the firm is ... wait for it ... surprised. And annoyed.

Parents who are reading this may be able to recognize what the firm has just done.

The firm has successfully trained the client that the PBC list and the work schedule just aren't that important and don't need to be respected or adhered to. 

Feeling taken advantage of, and still not realizing it's partly their own fault, some firms contemplate "policies" that penalize a client for not abiding by the schedule. Perhaps Rogue 24's policy is a good model to follow, eh? Nuh-uh.

There are much better ways to set expectations and prevent major disruptions to scheduling for audits or similar work that needs to be organized well in advance with appropriately skilled people during very specific time periods.

Sit on the same side of the table as your customer.

I'm not the least bit against a monetary penalty for lack of readiness. In fact, I believe timing of work should play a huge role in determining your prices. Timing is usually critical to the client and duration (a maximum) is nearly always going to be essential to your profitability. 

But it's not hospitable to shove an ugly contract in your current or prospective customer's face demanding compliance with your unilaterally decided terms. Doing so creates an adversarial relationship with the customer. (Sorta like billing and ducking does.)

Instead, put some energy into learning details about your customer's exact needs, educating them where it is helpful to both of you, and doing everything possible to help them be ready for you on the day you are going to show up to begin that work.

The best tone to take is "help us help you."

1. Give exact dates.

Be very, very clear about timing in your project quotes (or proposals or statements of work or customer-service agreements — whatever you choose to call them). Many firms take a lazy approach and simply say "30 days before the reporting date" or "30 days after fiscal year end."

Egads, if you don't care enough about the dates to list them, why would you think your client will care enough to honor them?

Don't ever make the customer calculate any due dates!

Do the legwork and tell them the actual dates. Better yet, include a visual. Show them key dates, don't just bury them in text.

Say what is needed, when, by whom, and delivered to whom.

2. Teach them how.

Do you want to win some points for being extra helpful? And do have you have an ulterior motive to make sure it's done right? Of course you do! And that's all right.

Informally talk with them. Show them samples. Provide templates.

Maybe you can offer some formal classes on preparing PBC list items. Education is a terrific complimentary service that you could offer as part of the engagement or charge extra for it. Perhaps new clients get to attend the first one free. Or every client gets one admission included and additional people are extra. 

3. Provide reminders. Early and often. 

Customers appreciate your reminder postcards, phone calls, and emails. They show you care and they emphasize that you're serious about timing and readiness.

This can be done by your admin team on a systematic schedule: a week before fieldwork, two weeks before, 30 days before, 60 days before, etc.

"How's your PBC list coming along?" "Do you have any questions for us?" "Don't forget, we'll be there Monday the 23rd." "Call us ASAP if you have any concerns about being ready two weeks from tomorrow. Now's the time to let us know!"

4. Show you're serious.

Of course there can and should be a stated consequence to lack of readiness if that should occur after all the education and reminders. 

In your project quotes, describe how you'll do everything in your power to help them be ready. Show you are committed to helping them help you help them (did you follow that?). Tell them you share their goal for a successful project and that in order to meet their desired delivery timing, these [list] things need to happen on these [list] dates. 

Tell them that in the unfortunate event that you don't get adequate notice about a date change (two weeks might be reasonable for adjusting an audit schedule) that there will be a $1,000 (or $5,000 or $10,000) rescheduling charge and that their audit would then need to be bumped back to the end of the month (or quarter or year).

And be very clear, in advance, about extra charges (state how much they'll pay for commonly delayed items) for assisting onsite with incomplete PBC work if you even have the time available to perform the work and still meet the agreed-upon delivery timing. This makes obtaining approved change requests a lot easier because the pricing was already spelled out.

When you provide your reminders, remind them that you don't want them to incur these charges or delay their audit and that's why you're being such a stickler about timing.

You can also consider offering rewards for readiness such as "clients who are ready for us will get priority scheduling next year" with first pick of dates which, of course, implies the opposite as a consequence for lack of readiness. 

Training is hard and retraining is harder.

What you are trying to do with all of this is to gain advance knowledge about lack of readiness so you can properly manage and adjust your clients' expectations about price and delivery. And, of course, manage your own scheduling (second to managing client expectations).

Don't budge on your extra charges or rescheduling. Just like parenting, it takes confidence and guts to stick to our guns during the retraining process, but we have to do it to correct the problems we have created and to be taken seriously. The very first time you are inconsistent, you defeat your purpose and have to start all over again.

If you apply these principles with "love" and care (e.g., it's for your own good ... "help us help you") by sitting on the same side of the table rather than coming across as though they work for you, clients can respect and appreciate you in the process of following your approach to serving them.

And they might even prefer to dine with you.

Comments

[Mguillemette]

Beautifully thought out, Michelle. This post is all about clear communication with customers. In the interest of clarity, I would make one other suggestion: Instead of asking customers to "call ASAP" if they have questions about fieldwork (or anything else, for that matter), tell them to "call by Friday at 3:00" if they have questions. Be specific. ASAP has no meaning and leaves timing open to interpretation.

[Michelle Golden]

Thanks so much, Melinda. Your suggestion is outstanding (and I'm kicking myself that I didn't think of it!). Definitely want to eliminate any ambiguity! Thanks for sharing this important tip!

[DeepSkyCo]

Great write up Michelle. Although I do see some points where an audit firm (only audit) may find a bit harder to do because of their independence requirement - the idea of approaching it from the "same side of the table" is certainly spot on. Point 2 is the only place that a firm may run into issues, but, with some creativity and help from others, it can still be done. Love point 4 - I think it is fair and just take a more open communication up front. May be scary, but definitely worth it.

Melinda made a great point. I believe I read that from Seth Godin (or some other smart person) where you should always include a specific time and date and make it actionable. Something that has no meaning should never be written.

Thanks for sharing!

[Kevin McCoy]

The graphical timeline is a great idea. I may have to steal that one! Thanks Michelle.