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Every business owner knows the feeling – that pit in the stomach when you know you have to show the client some not-so-good results. You are busy with work to justify not answering the phone. You write the email but don't send it until late Friday to delay the inevitable as long as possible. No one expects to discuss poor performance with clients, but these conversations are essential.
In fact, if you need to have one, it should be a top priority and not a chore. All customer conversations, especially uncomfortable ones, are opportunities for growth.
Connected: 5 Strategies for Achieving the Tough Conversations in Your Business
How to approach performance reporting
Honesty it's always the right strategy when talking to customers about performance, whether things are going well or not. Some people may avoid conversations about performance, especially when they don't meet expectations. They may try to justify their decision, reasoning that if the customer isn't initiating the conversation, there's no need to rock the boat. This is the wrong approach.
Instead of giving up on conversations about performance, be proactive and show your customers that you're on top of things. They need to know the reasons for the results they are seeing and understand the future strategy, especially when things don't go as planned. A customer may not be satisfied with the current performance of a marketing campaign or new product launch. However, they will appreciate your proactive approach and your willingness to initiate the conversation. And as much as you can you are afraid to have a conversation because of this, your customer will be more irritated if they have to hunt you down for answers.
Honesty really is the best policy
Underrepresenting poor performance to avoid angering the client is never a good strategy. This will only feed their negative feelings and destroy them their trust in you. Customers need to know the truth, even if it's not pleasant for you and your business. They will respect you more if you take a direct and honest approach instead of trying to downplay an issue that has real consequences for their business. They may not get excited when they hear bad news, but as business owners themselves, they should be able to understand that performance won't always be great and some things won't work as well as they want.
Along the same lines, ignoring a performance problem instead of owning it will hurt your relationship with your customer, often irreparably. If a campaign isn't doing well or a product isn't gaining traction, and you know you've done all you can, it's best to admit it, talk to the client, come up with a new strategy, and get back to work. . In this way, you minimize any possible consequences and show the customer that you respect the investment they have made in your company. Your customer will be more willing to continue doing business with you if they can trust that you are working in their best interest.
Connected: 7 ways to have a difficult conversation without losing your customer
We are on the same team
Having a difficult performance conversation should never be a battle. As a business owner, it's important to acknowledge shortcomings and focus on how to solve the problems that caused them without blaming, deflecting, or becoming defensive. The right way to handle a difficult conversation is to:
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Listen to customer needs, concerns and questions
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Help the customer understand what happened and why
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Admit any mistakes or shortcomings on your part without apologizing too much
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Answer all questions directly and truthfully
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Address the customer's concerns, no matter what they are
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Propose solutions to improve performance going forward
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Allow the client to decide how they would like to proceed based on the recommended remedies
Your client may want to point fingers; if they do, it's important not to blame them, even if their decisions contributed to unsatisfactory outcomes. A real professional is solution oriented. Conversations are always more productive when you come prepared with ideas to get back on track. This shows that you worked proactively for your client rather than allowing the situation to fester without intervention.
Dust off and get back to work
No one is 100% successful from the moment they start their business, and the occasional underperformance does not equal failure. Beating yourself up about negative results is also not productive. in we learn from our mistakes and the obstacles we encounter on our journey to success. So when a plan isn't going as expected, don't stop trying. Use your creative skills and mind to solve the problem and find a better way to accomplish the goal. Your client will be more receptive if they know you have an optimistic outlook.
Connected: How to prepare for difficult conversations with clients
Difficult conversations about performance should not be the norm for any business, but sometimes they are unavoidable. We all have a few mistakes under our belt. How we handle them with our customers and within our companies is what sets us apart. A business owner who is willing to admit when his plan did not succeed is a person who is willing to grow.