In today’s episode of ‘From the eLearning Trenches,’ we asked one of our learners, a partner in public practice, to identify 2 difficult clients where they feel they could improve the professional relationship. Outline what you can do, proactively to address the issue with these clients.
Learner Reflection
Client 1
This particular client calls every time and insists that everything he requests is urgent and needs to be done now, but yet won’t pay his bills because he can’t afford them.
He puts undue pressure on staff and will spend half an hour reiterating that he is a longstanding client (I wouldn’t call 2 years longstanding but anyway…) and threatens to leave each time.
Often his requests are minor and quick to resolve so we attend to his requests on the spot most of the time, but at times we do suggest giving us a day or so to action depending on the matter and his reaction to this is hit and miss.
We have told him on numerous occasions we can’t keep working like this however it goes in one ear and out the other. He understands but then does the same thing 2 weeks later.
It’s a love-hate relationship and one of those clients that is generally just difficult, unreasonable and unpleasant to work with.
We actually don’t receive any benefit by having him as a client and we have told him he is welcome to leave if he is not satisfied.
It has come to a point now where we have suspended services until he catches up with his bill payments and he has been understanding and forthcoming, so we have gained control of the situation for now.
Client 2
This client is extremely lovely and valuable in terms of their size and profitability for the firm.
They are big referrers too. However, getting any information out of them in a timely manner is like trying to squeeze blood out of a stone. A lot of time is wasted on chasing the information and sending reminders.
I think it’s important to place some accountability on the client by way of agreeing on a reasonable date/time they will have the information to us. Sometimes this proves to be successful, at times it’s just completely disregarded by the client, and they still don’t get back to us by the agreed timeline.
We are often gatekeepers for our clients, in that we will remit ATO late lodgement penalties on their behalf.
However, with some of these notoriously late clients we are trialling not remitting the penalties, so they see & feel that there are consequences as a result, otherwise they have no incentive to oblige.
We are watching this space to see if it makes any difference.
Feedback from our experts
Every professional firm has good and bad clients in relation to engagement and communication. And every firm is responsible for the decision to take on and maintain difficult clients. The main consideration is what we can do to improve existing client relationships and ensure, from the outset, that all new clients clearly understand the terms of engagement – not just the scope of work, but expectations in relation to communication and feedback along the way.
The 2 examples quoted above by the learner are pretty typical of the challenges all firms have with some clients from time to time.
The demanding client expects way beyond what has been agreed, for as low a fee as possible. They believe they are in control of the business relationship … and to a certain extent they are. In making a decision to be ‘understanding,’ the firm accepts unreasonable behaviour. A professional firm that is clear about mutual expectations will have no issues in explaining what is, and isn’t, acceptable in relation to the scope of work. The client always has the option to pay more for a more comprehensive (or timely) service, and they should have the opportunity to make that decision.
The client who won’t provide information in a timely manner is just as much a challenge, even though they might be, in the learner’s words ‘extremely lovely.’ Again, the first step should always be to explain what mutual commitment means in relation to the 2-way flow of information. If this does not result in changed behaviour, the next step should be to give the client 2 options in relation to fees, one with ‘reasonable’ level of follow-up and the other with intensive follow-up. Of course, there is always the possibility that the client will leave, but it’s often surprising to see how firms with a clear focus on ‘rules’ of engagement manages to be both firm and approachable in engaging with clients.
How do you manage difficult clients? What steps have you put in place to prevent clients from becoming difficult in the first place?
5 ideas to better manage difficult clients:
- Establish a Mutual Commitment Statement
Begin by crafting a clear mutual commitment statement that outlines the expectations and responsibilities of both parties. This document should include communication guidelines, such as preferred methods and frequency of updates, to ensure both sides are aligned from the outset. Emphasise the importance of this agreement in building a strong, cooperative relationship and set the tone for open and honest communication throughout the engagement.
- Set Up a Clear Workflow Schedule
Develop and share a detailed workflow schedule that outlines each phase of the engagement, including key milestones and deadlines. Be proactive in reminding the client of upcoming responsibilities, such as providing necessary documents or information, to keep the project on track. Utilise project management tools or software to make the schedule accessible and transparent, enabling the client to see progress in real time and understand their role in the process.
- Establish Strong Work-in Procedures
Implement rigorous work-in procedures to ensure that all necessary information and documents are received before any work begins. This might involve checklists for clients to complete or portals where they can securely upload documents. Make it clear that the timely receipt of this information is crucial for meeting deadlines and maintaining the quality of work. Regularly review these procedures with the client to address any bottlenecks or challenges in the information exchange process.
- Introduce Financial Penalties for Delays
Consider implementing financial penalties for clients who consistently fail to respond or provide information in a timely manner. This approach should be outlined in the initial agreement and communicated clearly to the client, emphasising that these measures are in place to ensure the efficiency and effectiveness of the service provided. It’s important to apply these penalties fairly and consistently, while also providing clients with ample warnings and opportunities to correct their behaviour before any penalties are applied.
- Explain Billing and Support Options
Ensure that clients fully understand what they are paying for by providing detailed explanations of the services included in their fee. Break down the costs associated with different tasks or phases of the project and be transparent about any additional charges that may arise. Additionally, offer clients the option to purchase additional support or services for an extra fee, outlining the benefits and value of these add-ons. This approach helps clients see the value in what they’re paying for and empowers them to make informed decisions about their level of investment in your services
Key takeaway: By taking control of communication, client managers can create a more structured, transparent, and mutually beneficial relationship with difficult clients, ultimately leading to smoother engagements and improved outcomes for both parties.
This assessment task and response is taken from the Path to Partnership eLearning course (assessment task 15.1). Click here to explore this course
Also, take a look at the Client Concierge eLearning Course
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