Golden Practices

Make Every Date a First Date

Did you see Seth Godin's recent post, The Last Interaction?  Great stuff!

The last interaction Marketers (and high school kids) focus a lot on the first date. After all, you never get a second chance to make a first impression.

I recently had some waterproofing done in the basement. The first date was great. The company was professional and had every single element down, from their AdWords to the web site to the way they interacted on the phone and in person. I think that stuff is pretty important, but I'm way more interested in the last interaction than I am in the first (and if you care about word of mouth, you should be too).

After they finished the job, they left my basement a mess. Forever, my only memory of the job is going to be the mess. Forever, the only thing I'll talk about is the mess.

The last interaction, in my experience, is responsible for virtually all of the word of mouth you're going to get, positive or negative.

That free muffin at the restaurant or the lollipop at the barber or the call from the Realtor a week after the house is sold and contracts are signed and the movers have left... believe it or not, it matters.

PS - The waterproofing guys took the time to call me before I did this post, and that call led to a new last interaction... my bad feelings are already fading, because they stepped up and took action. More proof that it matters.

As much as we pay attention to that "elevator speech" and how we are going to introduce or describe ourselves, we seldom spend much time preparing our closing remarks, or that last brilliant tidbit we are going to leave behind...

So many times, as Seth describes, we do whatever it takes to win that new business, meanwhile long-time, loyal customers may be underserved or even downright neglected. It's true that there is a thrill of the chase, and a definite "high" in landing that new customer.

It might seem less exciting to keep that romance going with the long-time client. But never take them for granted! This is not the era of my grandparents who would never change a doctor, dentist, lawyer or accountant...even if they complained about them mercilessly (and they did!).

Today, there are far too many others out there getting a thrill out of chasing YOUR clients. Don't let your guard down! Don't stop wooing that once hot prospect. Don't forget to do the courteous "little things" that attracted them to you in the first place.

Sound like marriage counseling? Maybe so. Suffice to say, in business, the same rules apply...well, most of them, anyway!

Gift Cards - the Gifts that Stop Giving

What's all the hype around giving gift cards? Of course it saves time (and thought). And receiving one can be a lot better than getting a hideous sweater from Aunt Nellie.

A spot on the news this morning defended, "Oh no, gift cards are NOT impersonal. But don't give cash anymore, because cash is impersonal."

Huh?? 

Gift cards, on the surface, seem harmless enough. But c'mon, it's a racket.

My 13 year-old son received a $40 gift card last December and he noted that the card's expiration date was a year away. He, unlike my other kids, likes to take his time deciding what to spend his money on.

So on a recent trip to the mall, he popped into the researched store of his choice to buy the researched item of choice and, low and behold, the store clerk informed him that his "gift" value had decreased by $12 due to the time elapsed since purchase.

Are you kidding me? I understand it dropping to zero on the expiration date, but depreciating its value during its valid period is lousy. Try cheering up a broken-hearted 13 year-old who cannot see how this is fair (hint: it isn't).

For family, cash is possibly still a better gift than a gift card with a squirrely policy.

Definitely, before sending your clients a gift card, check the policy!  Do you want them to have this sort of experience when they cash in your gift?

Maybe just send them a good old-fashioned bottle of wine or a great book, instead...

Marston's On Fire With 'Why Professionals Don't Get It'

My always controversial friend (and fellow VeraSage fellow) Chris Marston musta had an extra shot of espresso on Thursday...he was heated!

30-something Christopher Marston runs Exemplar Law Partners, the Boston law firm touting "no hourly bill, no hourly bull--law practice the way it should be."

He not only graduated from the relatively new schools of value pricing and blowing up the partnership model, he is breaking new ground daily in both of these areas. He shares his thoughts regularly on his Inside the Firm of the Future blog.

In keeping with his 'take no prisoners' blogging style, Chris' latest post, "Top 10 Reasons Why Professionals Don't 'Get It' When it Comes to Pricing and Service" doesn't sugarcoat how he really feels about most of the legal profession (much applies to accounting, too).

Abrasive? Yup. But well worth the read. Chris makes several valid points.

Airlines, Mushrooms, and Apologies

I don't mean to pick on JetBlue. I've never flown them (not a big presence here in St. Louis) but I have a lot o f friends who do and they swear by the airline despite the unfortunate weather debacle in NY. My biggest issue with that situation was the lack of a fast and dramatic "making up for it" action (like Intuit re Turbo Tax problems).

I don't fly Northwest Airlines very often. I flew them recently, though. Today, I opened a letter that said:

"I personally want to apologize to you for the delay in your travel plans. To show you my commitment to quality service, I am adding 1000 bonus miles to your WorldPerks account....I hope you will give us an opportunity to restore your confidence..."

I fly frequently enough (usually American and United) that I usually don't even notice an hour delay. I had to think back and try hard to remember this particular delay. Wow, my usual airlines don't do anything like this. Hmmm. Too bad NWA doesn't go (conveniently) from St Louis to most of my destinations.

Does your firm do something like this for what might be minor inconveniences where your customer hasn't even squawked??

Or does your firm do what Romano's Macaroni Grill (on Brentwood) did the other night when our family went out for my son's 15th birthday?

The restaurant served my eldest son's girlfriend a dish containing mushrooms despite very clear instructions to omit them because she is extremely allergic. The mushrooms were discovered after the dish was partially eaten which caused a lot of anxiety for everyone, especially the girl, who was visibly shaking with fear of her throat swelling up.

The waitress 'reassured' us that "It isn't my fault, the kitchen messed up." Of course, this blame avoidance only served to infuriate all of us. (See my post Blame Avoidance: Why It's a Fatal Error).

Recognizing that mistakes happen and you sure can't please everyone all of the time, isn't it awesome when people who work for companies do and say the right thing!?

Does your company have high standards and train your people to do and say the right thing? Do the leaders in your organization emulate optimal service or do they teach others, by their example, that something less is acceptable?

Don't Treat All Your Clients the Same

In creating a great organization, we'd all like to assure that every person in the company or firm provides consistently excellent service.

But, in reality, do you find that, within your firm, different professionals render different levels or quality of service? This is pretty common, I think.

We find that people within a firm are pretty consistent overall but out of every 10 or so, there seems to be at least one person that seems more exceptional and one that seems sub-par.

Your firm or company should have base-line service standards that are applied to all customers across the board. All customers should be able to rely on treatment that is prompt, fair, respectful, and pleasant--even if the 'news' or 'deliverable' is unpleasant. This is reputation insurance if nothing else.

The base-line standards should hold true no matter who is communicating with the client or who is responsible for them--whether the "lead" partner or manager, an assisting partner, a first year associate, a file clerk or the janitor.

If you have people who are sub-par at service, without a doubt, this needs to be fixed. Your reputation is vulnerable.

But it might surprise you that now I'm going to state that not all customers should be treated equally.

Above your base-line standards (about which many firms don't even have documentation or training, much less accountability...) it's just not physically possible to treat all customers the same (silly little barriers like 'not enough time in the day' seem to prohibit this).

It's actually okay to give super-deluxe service to your very best customers, to give some extras to good customers, and to give your base-line (which I'd hope is still at least slightly above average) to all the rest.

Think of it like an airplane--but it's not just about how much someone is paying you (revenue) for the one ticket, it's how important their overall continued patronage is to you. Loyalty works both ways. Think about hierarchy in standby, upgrades, legroom (United has 'Economy Plus'), club access, and more. This doesn't mean an airline should be rude to coach passengers, but that each step up gets a little better.

Make sure your base-line standards are better than average. And make sure you know exactly who your "good" and "very best" are above that. (See my recent post Who ARE Your Best Clients? for exactly how to evaluate customers.) 

Make sure everyone in your firm knows who's who, too, so that the right level of service can be delivered consistently from person to person. When anyone pulls up a customer in your database, shouldn't they immediately know if they are "gold" "platinum" or "executive platinum" so they can act accordingly?

Stellar Apology from Intuit: Service in a Box

Appended 7:27pm. How many thousands of 200,000 customers were affected by the inability to E-file their Turbo Tax returns on time last Tuesday night?. I was one of them.

The return was pretty much done a week or two earlier but I wanted to check one or two more things before I sent it in. So, after I got home from a dinner meeting, way too close to the stroke of midnight, I opened my return, checked a couple figures, and hit "submit."

To my horror, I received a message that said servers were overloaded, try again in 2 hours. Um it's 11:40. Uh oh.

I tried over and over again to no avail. Then I checked the Turbo Tax website and found a somewhat comforting message that told me there were problems, recommended we "keep trying...you might get through" and most impressively said that their biggest priority is to protect tax payers so they were working with the IRS to would assure returns would be considered filed timely.

Wow. Okay, cool. But how much hassle would it be to deal with the IRS to "prove" I'd tried to file on time and that "technology" hindered my efforts? Ugh.

I still kept trying and, miraculously, at the stroke of midnight, my return seemed to be submitting, but a message afterward said successful transmission couldn't be confirmed, check back in 24-48 hours.

Thankfully, as I get older, I am a lot more relaxed than I used to be about things I cannot control. I shrugged my shoulders, thought "I did what I could...I'll deal with this tomorrow..." and went to bed. Slept fine.

Here's where Intuit has blown me away. Jet Blue should take note!

Even before I confirmed whether my return actually went through (which it did), I received this (emphasis by me):

Dear TurboTax Customer,

We want to let you know that Intuit will be refunding any TurboTax credit card charges that were charged to your credit or debit card between 3 p.m. PDT Tuesday, April 17 and 4 a.m. PDT Wednesday, April 18.

We deeply regret the frustration and anxiety you may have experienced trying to e-file your return on April 17.

We worked closely with the IRS to allow taxpayers who were affected by the delay to file their returns until midnight tonight, Thursday, April 19, without penalty. Intuit will also pay any other penalties that customers incur as a result of the delay, although none are anticipated. We will be contacting you early next week with additional details about this refund. We value your business and appreciate your patience.

Sincerely,

Bob Meighan Vice President, TurboTax Customer Advocacy Intuit, Inc.

So, what did Intuit do right?

1. Got the word out on their website that their first priority was to PROTECT CUSTOMERS (even moreso than to fix the server problem!)
2. They IMMEDIATELY COMMUNICATED with customers by email that they were all over the problem and again reassured us, in writing, that we'd be okay with the IRS and that if, for some reason, the IRS would penalize us, they would cover those charges.
3. Sure they said they regretted customers' frustrations and anxiety, but ten times better, they PROVED THEIR SINCERITY by refunding all filing fees before most customers even thought to ask.
4. Intuit took steps to ensure no inconvenienced customer would be missed by blanket refunding every filer during affected hours, even those who filed successfully!

How much money did Intuit spend by this broad action? ($15 million BTW) Does it even matter?

Think of the risk to them of having however many thousands or tens hundreds of thousands of current and future customers FEARFUL of using their product. Now think of the loyalty they literally CEMENTED by their prompt, decisive action. Was the cost a drop in the bucket compared to future sales? I'd say so.

This is a fantastic example of a customer service situation handled beautifully. Sure, some customers were certainly very upset. But as I'm always saying, things happen! It's not whether or not you'll make a mistake, it's what you do when it happens.

People make mistakes. Companies do, too. And the more external factors we rely upon (suppliers, subcontractors, etc) the greater the risk of service foul-ups.

What's your company's reaction when something goes wrong? How about when a customer is frustrated or anxious--even if you DO come through in the end and deliver? Do you make up for the stress they might have in dealing with your organization?

My final thought on this...  let's reflect on what TurboTax sells. Is it a product? A "commodity" as some would say? A packaged "do it yourself" item? Well then, tell me this: How many product companies would refund for stress??

I think Intuit just proved they sell a service much more than they sell product. They sell the ability for people to be self-sufficient in preparing and submitting their taxes. They sell the ability for people to trust their product to let them do just that.

If Intuit can sell 'service: self-sufficiency and trust' in a bar-coded box, why do accountants and lawyers assert that they sell "hours" instead of peace of mind, solutions, and knowledge?

________
Here's a story from Computer World on the problem and the refunds.

Tax Season Horror Story

I've written about bad service attitudes before.

Did you catch this Dear Abby letter?  A Texas accountant writes in whining about what an inconvenience clients are and how put out the people in his firm are with it all!

Here's his beef as he anonymously chides clients:

• Do not just "drop in"....Being distracted from our work for a visit can be very disruptive.
• ...clients feel the need to share how their children are doing. We try to be polite and listen. But....Multiply that by how many clients come through our doors, and it's overwhelming.
• ...do not call your accountant and ask a question for...anyone else other than yourself....it is not billable time for our firm.
• ...if you call...requesting information about the tax consequences of a decision you are trying to make, please do not have a fit when you receive a bill for the time spent doing this research....

Thank goodness there are accountants out there who are mortified that this person represents their profession. Brenda Richter, for instance, an admitted VeraSage groupie, felt moved to reply to this offensive complaining.

I agree with Brenda. If the crabby, weary accountant who wrote that sounds at all familiar to you, I know hundreds that don't have lousy attitudes about their chosen profession and I'll be happy to recommend some in your area!

Clearly, the short-sighted CPA doesn't see client interaction as an important way to serve the client better and maybe even address some additional needs. And apparently s/he is too busy to care that some of these interactions might be a great referral opportunity.

I'm amazed people get away with this really crappy attitude and some even achieve success despite themselves.

Sorry? Sorry. Sorry!

Do you know how to apologize? Anybody who's read my blog for awhile will know that I consider the art of apology to be an essential song in any business person's repertoire.

As I've said in past posts, it's not IF you'll make a mistake, it's how you handle it when you do...

• See Blame Avoidance. Why It's a Fatal Error.
• See Lost Clients? "Reasons" Are Symptoms, Not Cause

I even described in my post about what not to put on your website that instead of just touting your accuracy, a real differentiator would be to say what you do when a mistake does occur. It's particularly engaging these days when we acknowledge that we *are* human, after all--especially in our immensely digital world.

But more on apologies...a post the other day by Seth Godin (he so consistently has gems on his blog, please subscribe if you don't already!) describes apologies that just don't cut it and built up to apologies that do work. He ranks them on a scale of 1-10, 10 being best:

• "You can always take your business elsewhere." (1): Thank you, I will, and so will all of my friends.
• "It's not our fault." (2): This is a non-apology, where you are not seeking to redress the issue, nor evincing any sort of sympathy for the injured.
• "We're sorry that you feel that way." (3): This is also a non-apology, which roughly translates into "It pisses us off that you feel that way. If you didn't feel that way, we would be happy." It also doesn't take any responsibility for the problem, and places all of it onto the injured party. Be careful of any apology that starts "I'm sorry that you..."
• "We're sorry if we did something wrong." (6): This is getting there, but doesn't really accept responsibility either. You are not acknowledging that you did anything wrong; you're still hoping that you haven't. You are offering an apology for appearances sake.
• "We're sorry that this occurred." (7): You are sorry, but as a matter of principle you're still trying to insist that it wasn't really your fault.

(oops, the last one was one way I suggested to apologize...I definitely like the next two better!!)

• "We're sorry that we caused this problem." or "We're sorry that we have let this happen." (9): This is a full apology, and is what the customer needs to hear. Frankly, it doesn't matter that it was really the post office's fault, and not yours; the customer doesn't care. Most people hearing this cannot help but respond with some sort of graciousness, such as "Well, all right then, these things happen. What are you going to do to fix it?" This is the target level that you want to hit for your customer service. But for the record, there is still one level to go. The complete apology is:
• "We're so sorry that we caused this problem; we are really distressed over this. Please know that we take this very seriously. This is a huge oversight on our part. I will immediately notify my supervisor, and we will review our procedures to ensure that this cannot happen again. In the meantime, that is no consolation to you for our lack of service! What can we do to regain your trust? We will be sending you a little surprise as a token of our appreciation of having you as a customer." (10) In truth, this little speech goes on until the customer interrupts. And it is followed by a few more apologies as the conversation closes, as well.

As usual, Seth is on target. The only improvement that can be made to his advice is to replace all the "we" references to "I" -- as in "I'm sorry" is a lot more potent, and personal, than "we are sorry."

I was talking with my friend Ed Kless yesterday about my post the other day where I described how impressed I was with a Lt. Col. who took "full responsibility" for a problem with recruiters that report to him.  Ed e-mailed me afterward saying apologies seemed to be big news yesterday:

From the front page of MSNBC

è  http://www.msnbc.msn.com/id/17136318/ (Daytona apology)

è  http://www.msnbc.msn.com/id/17166299/ (JetBlue apology)

è  http://www.msnbc.msn.com/id/17160685/ (Hardaway apology)

Maybe, as a society, we're all ready to be more accountable and to accept others who show proper remorse when they goof up? I sure hope so!

Can Business Learn From the Military?

I saw something last night that I don't see very often. It was moving and impressive.

Last night, a St Louis news channel ran a story exposing various instances of military recruiters (several branches) who were misleading potential recruits or saying inappropriate things.

Most of the incidents picked up on the 'secret cameras' used by undercover reporters regarded the downplay of danger in serving in Iraq or Afghanistan. Certainly, these techniques aren't acceptable and no one in their right mind would try to defend what was blatant misinformation caught on camera.

Or would they? In the corporate and business world, it seems that we often see footage or photos and hear spoken words, yet corporate representatives stand up and make statements that refute what we've seen and heard with our own eyes. Sometimes it's blatant denial and sometimes it's fuzzy logic attempting to explain or justify away what observation or logic tells us is so. 

But do you know what the military did upon being confronted with this troubling news story?

One human, one man, took complete responsibility for the whole thing and took immediate action to correct it. I quote the news:

Lt. Col. Junio-Omaru Barber is the Army recruiting commander for Missouri and southern Illinois....After learning about the I-Team's findings, Barber ordered retraining of all 180 recruiters under his command.

"I'm responsible. I take full responsibility for everything that happens in the St. Louis recruiting battalion," said Barber.

I commend Col. Barber and admire the accountability he demonstrates. Wouldn't the business world do well to emulate this level of responsibility more often?

Asking Means Acting

Whenever a prospective client asks me if I can help them implement a customer satisfaction survey, be it written, by telephone, or via face-to-face interviews, I respond with a question:

Are you prepared to act on the information you receive?

I know it sounds like a no-brainer, but it's not. We get busy. We mean well. But we screw up. Then we end up with customers who feel like Seth Goldin who posted this about his recent car maintenance experience:

The last time I took it in [for an oil change] I picked up a freshly washed car, it was a new free service they offered. Cool I thought....They also started giving a follow up phone call to make sure customers were happy with the service.

I wondered if they would wash my car this time, I assumed not. Not in January, too cold. I was right, the car was not washed when I picked it up. I understood. But the next day I did get the follow up phone call.

I said I was happy with the service, but...mentioned that after my "30 point inspection" my windshield washer was still bone dry and one front tire was still visibly low. "Well I guess we messed up" was the response "I'll have Paul call you back so we can make it right". Well that was Monday, today is Friday and I'm still waiting for the call back.

I guess my point is that if they hadn't washed my car the first time, and hadn't phoned me to see if I was happy with the service I would have more impressed than I am now. To raise someone's expectations then not fulfill them is worse than mediocrity.

I write often about the importance of managing customer's expectations. If you're not likely to act when people talk about what they don't like, I'm not suggesting at all that you don't ask.

Instead, I'm suggesting to ask often and make it a priority to act promptly. It really is the only way to safeguard your reputation.

After all, not asking doesn't mean the customer isn't unhappy, it just means you might not know in time to do something to reverse it!

Also, let me ask you, which was the worse offense in Seth's story?

Going the extra mile once and not doing it again? Or messing up the basics?

I've Been Wrong All Along. Service Doesn't Matter.

Everything I've believed and taught about marketing has been based on great service as a differentiator. Things like listening, caring, being accessible and available when your customers (clients if you prefer to call them) need you. Being friendly, returning calls, making people feel like they are important. That kind of stuff.

Nevermind. Don't waste your time. You can make enough money without doing any of it.

Here's a successful CPA's tax preparer's approach described on his website:

IMPORTANT REMINDERS:

1) Every Wednesday in February and March is BEHIND CLOSED DOORS WEDNESDAY. I will be unavailable and inaccessible on Wednesdays during the tax season. My phone and fax will be unplugged on Wednesdays and I will not be checking my email.

2) I never answer the telephone without first screening the call via my answering machine - so don't hang up because I may be listening (except on Wednesdays)!

3) Do not attempt to contact me at any other phone number other than....This is my only telephone number!

4) Returns than are not literally in my hands, with all the necessary information, by March 31, 2007 will be automatically extended.

5) I will not be responsible for any late payment penalties on returns that were not literally in my hands, with all the necessary information, by March 31, 2007.

6) Before you send me your "stuff" be sure to make and keep a photocopy of all your 2006 Form W-2s.

7) When sending me an email be very specific in the "Subject" line. If you need a copy of your W-2 - write "Need Copy of W-2". If you have received additional info - write "Additional Info".

If you have a question on a completed return - write "Question on Finished Return".

I do not have the time during the season to read and respond to "Are We There Yet" emails.

I will not open or read emails for returns I have not yet started until I am working on the returns - unless your "Subject" indicates a timely response is needed. Do not just write "URGENT" - note why it is urgent!

I retract my previous marketing advice because, if this guy has clients (and apparently he has quite a lot—too many perhaps) then people will apparently work with anyone regardless of how inaccessible, unresponsive, and impersonal they might be to work with—thus my advice is all for naught.

I will say that he's definitely doing a great job setting client expectations!

Oh, if you thought the above was a joke—fabricated for entertainment—it's not. This is on the homepage of Robert Flach who also has two blogs: The Wandering Tax Pro and NJ Tax Practice Blog.

Impressions of Your Office on Visitors

The other day I posted about what it might be like in your lobby when people come see you.

Today I offer a hat tip to my pal Dan Hull for blogging about perceptions of guests who visit your office. Dan directs us to an article by Ann Macaulay found on CBA Practice Link (Canadian Bar Association's website) called "Making Your Law Office Client-Friendly" (a good read for accountants, too).

The article focuses on improving the experience of being your guest. It's loaded with tips and examples on everything from reception area lighting to offering a usable work station to your actions when you meet with people. Check it out!

Fly on the Wall #4: What Happens When People Are in Your Lobby?

It happened again.

I was visiting a new client. No one knew me yet. The receptionist was fine. Greeted me as one would expect. I was a little early so I expected to wait. She asked if I needed anything and made sure I was comfortable. Then she continued her work.

As I waited for about 10 minutes, I observed that the lobby served as part of the office traffic pattern as well as an open elevator bank. The seating faced the traffic flow.

As more than a dozen people went through, I smiled politely and watched each one. Here's what I took in:

• More than a dozen people passed by, in both directions, within 10 feet of me.
• Most people walked at a slow to moderate pace with the exception of one woman who bustled through.
• Most people looked down as they walked through.
• Not one person met my eyes or glanced in my direction...nobody said hello or otherwise acknowledged my presence.
• People passing each other did not exchange greetings or smile at each other! Nor did anyone speak to the receptionist.
• No one smiled, whistled, seemed amused, had a spring in their step, or in any way displayed that they were enjoying their day.

What are your impressions about this firm? (I know what mine were!)

Does this seem like a nice place to work? A friendly environment? Like people you want to work with?

What if you were an important prospect? How about a highly desirable job candidate? A perfect referral source?

Could this be your firm? Wouldn't you be mortified?

Do you pay attention to the experience of someone in your lobby? Do people behave the same passing by an occupied lobby as when it is empty?

When people come visit you or your business, it makes you a host. Would you walk in your front door and pass a stranger in your living room without greeting them?

5 minute marketing idea:
E-mail your entire team and remind them to go above and beyond to be friendly and outgoing when people are waiting in your lobby. Link them to this post to save some time typing...

Client Portability and Trust

Are your clients portable enough?

I don't mean portable for you to move on. I mean portable for others to take them from you. "What?!" you ask?

Always intriguing, attorney Dan Hull (pictured) over at What About Clients? says that if your associates can't steal your clients tomorrow, then they aren't involved enough and your firm isn't providing truly outrageous service.

Dan wrote:

"Dude, if you can't steal our clients, you're fired."

Every day, the client service by associates and paralegals should be good enough to permit those employees to actually steal any client, and take them to another law firm...if they were to leave your shop tomorrow morning. Period.

Fact: that's what we want at our firm, and that's what we tell associates.

If you are not, in effect, willing to go that far with your own employees in instituting and daily demanding client service, you are neither confident about client loyalty (not to mention employee loyalty) nor really serious about delivering outrageous client service to your clients.

I've never heard it put quite like this, but I think Dan's got a great point. See Dan's whole post.

In the interest of a single lawyer or accountant trying to stay "portable" (read: uncommitted, silo'd), we frequently see a tendency away from involving others on their accounts. Not only is that profitability suicide (lack of delegation and training), it's also service suicide (more people means more responsiveness, more value, more "brains" on the job), and it's an associate retention disaster.

Behind the challenge: "can you steal the client?" lies the incentive NOT to. This is a culture thing and it goes hand-in-hand with what's at the heart of Dan's message: trust.

This much trust is a people magnet. Don't you want to work in a firm that has this much trust in people?

When there is trust in a firm, culture is strong.

• Trust that your partners and team members will do the right thing for the right reasons.
• Trust that associates and other team members will learn what they need to know.
• Trust that mistakes will be made, but will be handled gracefully.
• Trust that others will represent themselves effectively with "your" clients.
• Trust that time is well spent by everyone. (no micromanaging!!)
• And trust that your outward trust will come back to you exponentially.

Trust is awesome in that, for most people, the more you trust them, the more they deserve to be trusted and will work hard to continue earning your trust. It's a beautiful thing.

Do you want people to work for and with you?

If you don't or won't trust in these things, you might want to think about what it's costing you in client turnover and lost team members.

Blame Avoidance. Why it's a Fatal Error.

Pleasing the customer is the main goal in client service, right?

When a client airs a problem or complaint, it is often our first instinct to explain why it happened. Don't do it.

The client doesn’t really care WHY it happened. They just want acknowledgment of the problem and then they want amends.

1. Resist the urge to explain. Never, ever explain who dropped the ball or offer any excuses about why. Here are three reasons to skip the "explanation":

• your explanation cannot help but demonstrate to the client areas in which your systems and processes are weak--they will think less of you
• blaming others (or processes over which you should have some control or authority) reduces the impression of your personal integrity and effectiveness--they will think less of you
• lastly, the explanation does not serve to correct the problem in any way

Worse, these three things will almost certainly further aggravate clients. Why? Because it makes them question, and doubt, their judgment in hiring you.

2. Own the problem. Even if it is not your fault. Especially if it's not your fault. Do not pass the client to "someone else" to deal with it. Even if they caused it.

The first thing the client should always hear is a sincere apology. It's actually quite liberating to apologize on behalf of yourself, others, or the organization. Just say "I am so sorry this has occurred."

Immediately following the apology, state directly that it is your intention to solve the problem or make up for it, as appropriate. Say, "I will do everything in my power to correct this and take steps to assure it does not happen again." If necessary, you can add, "and to make up to you for the inconvenience." 

Almost always, these two statements will diffuse a client’s anger or frustration. You can then either propose a solution or ask what the client would like as a remedy.

The two-step approach, instead of causing clients to doubt their judgment in hiring you, reassures them that they hired someone of integrity and honor.

Mistakes will always happen--they are part of life and business. What matters to your customers is how you handle them when they occur.

*Note - these approaches are as effective internally as they are outside of your firm

"When you blame others, you give up your power to change." -- Dr. Robert Anthony

Directors of First Impressions Really Are

Gerry Riskin is right on with his receptionist post today. He was inspired by Seth Godin's post, "Receptionists."

Results Accountants' Systems (the Bootcamp folks) got it right when they recommended the position be called Director of First Impressions and gave dozens of ideas for how this DoFI could assure a superior experience for customers.

Receptionists are a leading indicator of doing business with a company or firm.

The receptionist, even in a couple moments, reflects the company's culture, personality, quality, accountability, intelligence, warmth, and care.

I called a Top 100 CPA firm in the East that I had thought was pretty savvy and "got it." But my impression of the firm was lessened significantly by the tone and demeanor of the receptionist who sounded inconvenienced to have to answer my call. She sounded like she hated her job. She couldn't get me transferred fast enough cutting off my polite "thank you."

I thought, "This is the firm's idea of an appropriate way to present themselves to callers??"

I've been extremely impressed at times when I've called firms and been greeted especially pleasantly. I've been able to sense that the receptionist had a smile on her face or was genuinely invested in getting me to the person or the information I needed. THAT is what we're after.

Just as Gerry describes being the recipient of a regular string of compliments, I always tell the person I'm calling when the receptionist is exceptional. The most recent such instance was on June 26 when I did so by e-mail. This is exactly what I wrote moments after calling a law firm:

BTW, your receptionist today was absolutely fantastic. Commendable. And she deserves a pat on the back. I speak with a lot of firm receptionists and she stood out in a very positive way. After being extremely helpful and courteous as I worked through a list of 4 or 5 people to potentially speak with, I thanked her for her excellent help and she, in kind, thanked *me* for my patience. Wow. It was no problem at all I assure you and she made it a very pleasant experience doing everything she could to assure that I was taken care of.

This is the response I received:

Thank you SO much for your compliment of our receptionist. Amelia is filling in for Natasha who is on vacation. I will pass along your commendation to her.

Hmmm, while I hope I didn't cause such a positive spotlight on Amelia that it made Natasha look poor in comparison, it occurred to me that I had never been greeted quite as warmly by the firm before by phone or in person. (they are a client...names have been changed)

Two very different experiences within the same firm...

I have also reported, though, when the receptionist is a distinct "downer." I think a firm needs to know. Kinda like telling friends they have spinach in their teeth. This doesn't happen often, though. In fact, I probably pass on mentioning some instances that are borderline. You would want to know, wouldn't you?

So how many compliments do you receive about your receptionist(s)? Do you pass them along? (positive reinforcement is SO powerful).

Or do you get no remarks? You ought to consider making a change.

Negative remarks? Stop reading blogs immediately and start writing your next job ad for a superstar receptionist!

Win Free Registration for National CPA Practice Management Conference

Just for reading this blog. No strings attached. And I am not compensated in any way for sharing this offer. So why would I do it? Because it benefits you. And isn't that what blogs are about?

As a "blogger well-read by CPA firm leaders" (it's a real honor to have earned that label!) the Web-savvy (and blog-savvy) Virginia Society of CPAs has asked me to help them spread the word about their upcoming 2006 National Practice Management Summit.

This is an exclusive opportunity for readers of the Golden Practices blog! 

The Virginia Society has put together an all new event, offered in partnership with 11 other state CPA societies. The program includes nationally-known CPA practice management figures Marc Rosenberg, Gary Shamis, Gale Crosley, and more. Link to program here.

It runs August 23–25, 2006 at the historic Homestead Resort & Spa in beautiful Hot Springs, Virginia (named a top 5 spa resort by National Geographic Traveler).

The Virginia Society is offering one FREE event registration to a Golden Practices qualifying reader. This is a value of up to $1545!

To be considered, you need only ask.

To sign up: just e-mail Ben Martin on or before 11:59 p.m. EDT on July 17, 2006. Put "Golden Practices FREE Registration" in the subject line or body of the email, along with your contact information. (It goes straight to them, not to me).

The VA Society will draw a winner and the lucky recipient will be announced right here on this blog on the evening of July 18, 2006.

Who qualifies:  the VA Society says the drawing is open to all sole practitioners, general and managing partners of public accounting firms and public accounting managers who are on the partner track.

Answers to all of your questions about the 2006 National Practice Management Summit can be found on the event's Web page.

Spread the word!!

And may the most loyal reader win! ;-)

Lost Clients? "Reasons" are Symptoms, Not Cause

Ever have a BFO? A Blinding Flash of the Obvious?  It's my sincerest hope that this becomes one for many readers. It was for me a couple years ago.

What are the reasons professionals think they lose or upset clients?

• price/fees
• not "proactive" enough
• poor service
• relationship changed/deteriorated (chemistry)
• etc

Sure, those are all valid complaints. And the REAL, underlying problem, for every single one of these, is that the customer expected to get something different from what they got.

I'll bottom-line it: Clients name these factors when conversations that should have occurred, did not. 

You could call it lack of proactivity or lack of service. It's lack of setting and meeting expectations(adjusting when needed). Think of it as "scope" for the soft-stuff.

There is a pretty easy solution. It involves 3 steps:

1. Listen/ask/listen more
2. Mutually establish expectations (written is good)
3. Meet them

If something usurps #3, conduct a conversation as early as possible to alter #2. If you cannot catch it in time, apologize profusely and fix it (without assigning blame, please).

To improve profitability, increase prices, retain clients, have happier team members (who know what expectations to meet), and solve most "service" related problems, apply the magic 3-step system above. It will change your firm forever. I promise.

If you want to see what inspired this advice, read Rick Telberg's post Finance Execs See Service Lagging at CPA Firms (excerpt below) and think about it relative to what I've written above.

What might cause the client to switch auditors?

Bay Street Group's recent studies of accountant-client relationships...got a surprising dichotomy of answers. CPAs tended to say one thing, while CFOs said another. Surprised?

Public practicing accountants (47%) seem to be under the impression that they lose clients due to "price, fees, costs, budgets and affordability."

But finance managers and CFOs have a different take. A solid majority (79%) point to "poor client service and lack of attentiveness." Fees and costs ran a significant second, at 66 percent.

Back on the CPA-firm side of the question, service was the third most commonly perceived reason for expected loss of clientele....

There's something wrong when twice as many CFOs as CPAs see service as the determining factor in client longevity. That might mean that a lot of CPAs are failing to offer what corporate accountants want....

The other reasons CPAs fear they might lose a client were distantly less common. Twenty percent thought "bad personal chemistry" might be the problem; 19 percent recognized that they might not be proactive enough; 17 percent figured they'll beat the client to the punch by firing them for business reasons; and 11 percent worried that the client might take the function in-house.

The third most common gripe among financial officers was "not getting enough time with CPA firm's best people" (again, a matter of service and attention) at a significant 38 percent. Bad chemistry followed next, at 34 percent. Lack of proactive advice came close, at 33 percent. Twenty-two percent said they might need new or different services.

Every time I see these "reasons" hashed out, again and again in study after study, I just want to shout the expectation mantra. It really works.

No matter how small the job or client, the "scope" of these issues is every bit as important to the customer (as demonstrated by defection and complaints) as the scope for the technical aspect of services.

Clarify your buyers' price expectations and parameters and use change orders as needed (better to identify fee sensitivity on the front end!). Ask about their preferences for communication frequency, delivery, staffing, level of "extra" advice/consulting expected, and so forth.

You will be shocked at how much less they expect than what you think they will "require." Either way, it gets everything on the table. Document it in the client's file and in your contact management system, if you use one.

Wouldn't you appreciate the same when you buy professional services?

So, was this a BFO?

Distinction Between "Service" and "Hospitality"

This is one of those "Yeah, what she said!" posts.

Allison Shields of Legalease, has a marvelous piece on whether client service can be taught. Not sure about the answer to that question (my hunch is it could, but it's sure sad that it needs to be...).

What is quite clear in the post, however, is that when people like Allison and myself are talking about "service" we are thinking in terms of hospitality: treatment...experience...how the customer FEELS dealing with you. And most of the people we are talking to seem to be 'hearing' more technical (dare I say measurable?) elements of service such as delivery timeliness, etc.

Fact is, something can be done on time and done accurately, yet still leave the customer feeling miserable about the experience. It's ALL got to work. Read Allison's post!

(hat tip to Dan Hull who also had a nice write up on this...)

A Good Eye for Customer Service

A great customer service tip was posted by Matt Homann over at the[non]billablehour.

He shares:

Ever have clients come by your office who need to read documents?  Get a load of this tip (for waiters and waitresses) from Tricks of the Trade:

Keep a pair of reading glasses at hand. At least once every few days you'll get a customer who forgot their glasses and are unable to read the menu. Produce your spare pair and a good tip is secure.

Reading glasses are cheap at Wal-Mart, Target, etc.  Grab a few pairs...

It doesn't get any better than making your customers more comfortable any way you can!

When and How to Request Referrals

Over at Duct Tape Marketing, John Jantsch had a good post on How to Frame a Referral Request.

First addressing the barrier of why more referrals aren't requested, Jantsch says:

...I often find people are reluctant to ask straight up for referrals out of a fear of looking needy or infringing in some manner upon the relationship with the client. I think the reason that this fear exists is because of the improper way most people have learned to ask for referrals.

I agree and would like to add that there is also another very major reason professionals are reluctant to ask a customer to refer them: they know the customer realizes they're not presently getting optimal service.

Little slips such as late deliveries, less than desired communication, unexpected billings, etc. add up and without openly addressing and correcting these problems, we know in our hearts that it's not the right time to ask that customer to point a friend our way.

First, face and fix these problems. Though one instance may seem small to you and you might think the client understands or forgives without your asking for it, that isn't necessarily so.

Second, never hesitate to build on the moment a customer offers an unsolicited compliment. "Great work! We really appreciate the way you handled that."  to which a perfectly acceptable response might be: "Well, thank you. It's our pleasure. We're glad that you're pleased and hope you will tell others about your positive experience."

Third, employ Jantsch's advice about how to frame an out-of-the-blue referral request (but only if you know the client is very happy with your services!). Here's what he says:

Most business owners position the asking of referrals as a favor to the asker. Kind of like, we need your help. As much as people like to help, there's really no benefit in that kind of ask.

Here's what I mean:
Many businesses try to rationalize asking for referrals by suggesting that they need more clients just like you - this is how I work or if you provide me with referrals I can spend more time working with you. The problem with both of these ways to frame referrals is that they are all about you. I need your help. I work like this.

One of the keys to becoming a referral magnet (actually the key to any marketing message) is to frame it as a benefit. When you are talking to an existing client the benefit of a referral is the opportunity to help that person help a friend or raise their value with a colleague.

So, how could referring you make your client's life better? That's the proper way to start thinking about referrals. Do that, and you will never be afraid to ask a client again.

Now you are not asking your clients for help - you are offering to help them get more of what they want. Use your expertise to make them look good, add value and enhance their status - now that's a winning proposition.

Value Pricing Isn't Easy, But Neither is Writing off a Bill

I was writing to Bay Street Consultant Rick Telberg today on another matter and mentioned that I’ve been enjoying conversations with Ron Baker and our other VeraSage colleagues about this recent reply submitted to Rick about his CPA Trendlines blog post “You Are What You Charge” about value pricing.

Personally, my suspicion is that the gentleman didn’t implement value pricing (VP) properly in his firm. Or fully (which he openly states). First, it is really hard to see it work if you don’t implement fully. I can say this with conviction because of my own personal experience.

I started implementing a couple years ago and just went “all the way” (i.e. no timesheets) very recently. I can really see both sides of the pro/con argument when it comes to operational barriers to implementing VP. 

I implemented VP in my practice for ethical, practical, and customer satisfaction reasons. It is the right thing to do both with regard to customers and employees. And if I believe that, and believe it is best for other professional service firms, then I absolutely have to practice what I preach.

HERE IS WHAT I LEARNED:

It IS a lot more work up front to thoughtfully consider the scope and document it before just jumping into the work. But on the back end, there are NO ugly fee discoveries (we spent HOW MUCH time on it??) or those horrible conversations with the client (after the fact and when pricing leverage is completely gone) about why the bill is so high (meaning “time got away from me").

This is really the way it should be...respecting the customer’s choice to buy or not buy at a price you are comfortable with.

If the customer isn’t willing to pay a price at or above what you’re willing to do the work for (your lowest walk-away price) both you and the customer know it up-front. No time invested or written off, no hard feelings. Better expectation management, more enjoyable doing the work because you don’t need to fret over the ever-growing WIP.

And when Baker says your “gut” knows what to charge, he is absolutely right.  Anyone who’s been in business for any length of time knows roughly where to start in discussions with clients about what “it takes” and what it is “worth” from a value standpoint to the client. I maintain that the biggest hurdle to overcome is the temptation to equate your past “hourly” price with the current “value” price. Big mistake. Easy to do and I’ve fallen victim to it myself, but it IS curable!

The thing is, this level of thinking about the scope should be done ANYWAY in order to provide excellent service and properly understand/manage customer expectations. But this usually isn’t done. Instead, we delve into the work living in this false sense of security that the customer will pay us that hourly rate “because that’s how long it took to do it” — it being whatever we thought the customer wanted but we never really took the time to define.

THE IMPORTANCE OF SCOPE

On April 9, professional service firm management guru David Maister shared an excellent blog post called “What Do You Want From Me.” His post addresses what should occur no matter how you price. It is excellent advice:

Whether you are being given work to do by a client or a boss, it’s common that people will assign work to you badly, and that will cause you problems.

How can you do what they want if they don’t tell you clearly what they want? The key is to take responsibility and ask permission to ask questions.

When someone gives you a task to do, say something like ‘I really want to do a great job for you, so can I clarify a few things?’ Most people will say ‘Yes.’ You can then be sure you understand the following details about your assignment —

1) The context of the assignment — ‘Please could you tell me what you are going to do with this when I get it done, tell me who is it for, and where does it fit with other things going on?’

2) Deadline — When would you like it, and when is it really due?

3) Scope — Would you like me to do the thorough job and take a little longer, or the quick and dirty version?

4) Format — How would you like to see the output of my work presented? What would make your life easier?

5) Time budget — Roughly how long would you expect this to take (so I can tell whether I’m on track or not?)

6) Relative priority — What’s the importance of this task relative to the other things you have asked me to do?

7) Available resources — Is there anything available to help me get the job done? For example, have we done one of these before?

8) Success criteria — How will the work be judged? Is it more important to be fast, cheap or perfect?

9) Monitoring and scheduled check points — Can we, please, schedule now a meeting, say, halfway through so I can show you what I’ve got and ensure that I’m on track for your needs?

10) Understanding — can I just read back to you what you’ve asked me to do, to confirm that I got it down right?

11) Concerns — before I get started can I just share with you any concerns about getting this done (e.g., other demands on my time) so that I don’t surprise you later?

Yes, your client...should be good at delegating or assigning work and giving you this information anyway. But the truth is that many people won’t have thought through what they really want from you until you guide them through their ‘either-or’ choices.

If you have not received answers to these questions, you don’t yet know what to do, and the risk of being judged a failure is high!

Don’t rely on your...external client...to give you all this information. Pull it out of him or her.

Scope definition is essential to VP. And it should be just as important to apply even when pricing by the hour. The point is to create accurate expectations for your customer and then meet them. No matter how you price, no customer likes billing surprises or service disappointments.

(originally posted at VeraSage.com)

Service and Leadership or Role Modeling (Call it What You Will)

I didn't get past the first bullet-point of Guy Kawasaki's "The Art of Customer Service" without needing to post this immediately:

1. Start at the top. The CEO's attitude towards customer service is the primary determinant of the quality of service that a company delivers. If the CEO thinks that customers are a pain in the ass who always want something for nothing, that attitude will permeate the company, and service will be lousy. So if you are the CEO, get your act together. If you're not the CEO, either convince her to change her mind, quit, or learn to live with mediocrity--in that order.

When I think of leadership faltering, this is the most prevalent thing I see. In every industry. But definitely in professional services.

It bears repeating: "The CEO's attitude towards customer service is the primary determinant of the quality of service that a company delivers."

In firms, though, it's not just the Managing Partner. It's every partner/owner/shareholder/director, etc. Every partner has been tagged a leader. As such, each partner's behavior is equally influential throughout the firm when it comes to setting the tone of "acceptability" for service attitude.

If your firm has "leaders" who think less than stellar service is just fine, even if there are some others devoted to excellence, the firm's standards will never exceed mediocrity overall.

Now, I'll go back and read the rest of Guy's post! If there's more that moves me, I'm sure I'll be posting about that, too.

GC Sense That 'Building Relationships' Is A Euphemism for 'Give Us More Work'

Case in point.

Just read the first in the Protecting Your Crown Jewel Clients series (a little behind in my "must read" stuff) by Edge International and WHAM, the perfect example -- from the client's own mouth -- as to why selling and satsifaction questions must be completely separate (a point with which Tom Kane strongly concurs).  The article discusses:

Firstly, Too Many Law Firms Have Launched Far Too Many Teams, Far Too Quickly....

Secondly, Too Many Of These Client Teams Invest All Of Their Available Time In Formulating Plans Designed Only To Secure More Work.

As one General Counsel confided, “most of these efforts are defined and managed to serve the firm's interests. To us, they are nothing more than thinly veiled sales campaigns. Someone comes in, asks how their firm is doing and, if we dare say okay, they then want to immediately introduce us to a number of their other attorneys.”

Client service teams mean much more than marketing. Indeed, the term “service” should provide a clue as to what the primary focus should be. But, all too often, we look at our client's situation through the lens of our own offerings and our desire for another sale.

Little wonder that in law, for example, increasing numbers of General Counsel sense that when your firm talks about “building relationships” it becomes nothing more than a euphemism for “give us more work,” while “providing added value” becomes interpreted to mean, “at higher rates!”

Don't miss the 10 Question Test the authors offer for determining if you're really showing your best clients the service behavior they should receive.

Selling and Listening and Meeting With Clients, part 367

If I were half as eloquent as Gerry Riskin, I would have posted his comments (reflected on the Law Firm Business Development blog) on my blog yesterday, instead of this.

NOTE: Accountants, please substitute "CPAs/accounting" for "lawyers/law" as you read.

Gerry discusses his perspective of client visits comparing it to the Womble Carlyle sales campaign approach. Of the views of Steven Bell (of Womble) and himself, he writes (emphasis mine):

Both of us are well aware that top rainmakers in blue chip law firms report that they rarely visit a client’s place of business without growing existing work or getting new work. Both of us agree that this is a desirable consequence of client visitations. The key issue is whether selling ought to be the focus of the visit....

Few lawyers understand their clients’ businesses or industries as well as the clients would like and we agree that this is a critical objective for the visit.

The delicate question is this: What is the appropriate reaction in a client visitation when it becomes obvious that there is a legal need that your firm is not currently fulfilling. My view is that the primary purpose of the visit must not be abandoned (or appear to be abandoned). At the same time I agree completely with Steven Bell that the doctor must help the patient. I don’t believe that Steven is advocating throwing the patient onto the gurney and tossing our note pads into the trash. I used the word “delicate” because there is some judgment to be exercised here.

How can we be appropriately responsive to the need without being unfaithful to the primary purpose of the visit. I can think of several possibilities:

• Briefly defer the discussion of the legal matter to a follow up with the lawyer(s) who are best equipped to attract the work and do it with quality.
• With the client’s blessing, allow a digression from the meeting’s agenda to address the problem or opportunity at hand but be disciplined enough to return to the original agenda.
• There may be different and perhaps unforeseeable options which make sense in the context of a particular meeting. The visiting lawyer(s) must have the discretion to exercise appropriate judgment and make the best choices in the circumstances.

This is excellent advice and Gerry hits the nail on the head. I particularly agree with his statement that:

Perhaps what I have described here is indeed selling at the highest level

Enjoy the rest of Gerry's comments within which there are many pearls of wisdom.

Further on this subject is an excellent comment (scroll down on the page) by Robert Millard (another Edge International guy with a fantastic blog) made on Jim Hassett's post that I referenced yesterday.

These discussions, by the way--the whole thread of the purpose of client interviews--has engaged many lawyers and consultants (including Patrick Lamb, Dan Hull, Tom Kane, and more) for the past couple of months. It is nicely recapped on Jim Hassett's blog.