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The Integrity of Business: Keeping your Promises

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The Integrity of Business: Keeping your Promises

Because of the growth of my business, I have had the pleasure to afford hiring some great companies to help me grow. This has included a wide variety including contractors, signage companies, website developers, consultants and new vendors. As the customer in these engagements, I began to see a trend that didn’t make sense to me.

There were two different macro experiences I had that are worth noting:

1. Being thrilled with the outcome (project, job or consulting) knowing that this work was going to help my brand and customers’ experience.
2. Being surprised, frustrated or even upset because I was sent an unexpected invoice for additional work at the end of the project.

Out of 12 such companies I worked with, about 50 percent thrilled me and 50 percent frustrated me. This surprised and shocked me. After all, I know that my customers would never experience this sort of frustration from my company, so I wondered what was going on.

I’d also like to note that the price changed with three of the companies I was thrilled with, simply because I asked for changes to the scope of the work. I owned that and of course I want to pay for scope creep (if it comes from me).

But the root issue I experienced revolved around being charged for work that was not communicated to be out of scope or a failure to have work defined correctly in the beginning of the project.

Defining your Promises: Stop Upsetting Clients

When your customer comes to you, they are asking for help to solve a problem. They either have realized that they can’t solve it themselves, or else they want an expert to do it better or faster. They need you. As you define the problem to be solved, you are starting to understand and develop the promise(s) your company is going to make to this customer. You propose the solutions and the customer agrees and signs the agreement. This is where the seed of breakdown gets planted with your customer.

If you have taken the time to really understand the problem, and if you are the right fit to solve the issue, then how can you get to the end of a project and unexpectedly send the customer a bill for un-scoped work?

Of course, you may rely on justifications like:

• I needed to come in cheaper to displace the competition / incumbent
• They didn’t have the budget
• There are always unknowns
• Outside influences
• Stupid customers
• Demanding customers
• Unreasonable expectations
• Unpredictable market

Any of the complaints above may be true, but none of them make it acceptable to charge a customer for unforeseen (and unapproved) work. Ask yourself: Who is responsible in the eyes of the customer for these reasons and excuses? And who is responsible in your eyes? If the answer of these two questions differs; you now know the root of why your customer would be surprised and upset.

If you want to rectify this sort of issue before it ever takes hold, it’s important you build significance in the market.

Here’s what that entails:

1. Know what problems you solve better than anyone else.
2. Know why your company exists, its reason for being, or its purpose.
3. Define your promises and commit to customers they will be fixed, because you know the road and its pitfalls (this allows you to increase your margin and separates you from the competition).
4. Don’t bring on customers that you can’t help, don’t have margin or are demanding. They cost your bottom line and your brand 10 times what a successful engagement would.
5. Look through the customers’ eyes. Ask yourself what experience you want them to have when they engage with you, and seek to deliver that.
6. Don’t engage until all the expectations are communicated from and to the customer.

As one business owner to another, we need to look at our companies from a new perspective all the time. There are 360 degrees as you walk around your business, so look at the whole of your company as it relates to your customers’ business!

Posted by Mike Toney / Posted on 21 Oct
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