Changing Client Perceptions

Introduction

Ever return to a reunion and been frustrated when former classmates are surprised at your success? It may be human nature to pigeonhole each other, and since (most) clients are human, they have a natural tendency to make assumptions about your abilities that will be tough to change.

Smaller ships turn quicker, and your capabilities are likely to expand more rapidly than client needs will evolve.  You are a smaller firm than your client, and are likely adding capabilities very quickly. That’s another way of saying that clients may have you in a rut.

Who is Responsible

Before exploring ways to climb out of the rut, though, recognize that you are largely responsible for what clients think of you. If current  clients have limited views of your abilities, the odds are that you are the one who provided the evidence they needed. In other words, take responsibility for the image that exists of you or your firm.

Building an image in the marketplace is like tiling a kitchen floor. Those first few tiles are critical, and any misalignment will be magnified later. When we approach clients, though, we often are so desperate to get that first tile down (i.e., “get the job”) that we aren’t careful about how it is laid. We know that more care would be prudent, but tell ourselves that we can “fix” any ramifications later. Unfortunately, it is much more difficult to change perceptions than to inform them in the first place.

Losing Respect

Most public relations, advertising, interactive, and design firms (about 80%) do not have a credible marketing plan for themselves. Since that results in too few opportunities to choose between, they compromise their positioning to get a foot in the door. The self-justification sounds like this: “I know this initial program won’t be as profitable as I would like, but there are lots of opportunities at this company, and if I get my foot in the door now, I’ll be there when the opportunities come along.”

This is a terrible plan. Rather than getting your entire body (much less company) in the client’s door, you’ll be banned to the hallway, with your bruised foot extending through the crack that seldom opens wider.

Working for small startup companies trying to go public (through an IPO) is a classic example of this dilemma. They desperately need something, but don’t have the capital to pay for it. They’ll work hard to convince you that this is a good investment on your part. After all, as the marketing manager intones, “we are committed to being loyal to the suppliers who help us at the beginning. Think of the opportunities there will be. We are all in this together. Help now, and you’ll be the first in line once the money starts pouring in.”

With great expectations, we join the team at discounted rates and wait for the big payoff for all the loyalty and hard work. Most stories end there, though, since the typical startup never goes public. But for those that do, it is far more common for them to replace you with someone who “is more suited to our needs right now.” You have prostituted your work because you either didn’t have a marketing plan that gave you other opportunities, or because you more interested in how exciting the opportunity was than how profitable it was.

Earning Respect

Don’t despair. Everybody learns this lesson the hard way. Those that prosper move on and pay more attention to positioning themselves. Here are seven ways to keep perceptions in line with reality.

First, market yourself all the time, no matter how busy you are. Marketing is the most important ingredient in the success of any business. But it is not primarily about getting more work, but about the kind of work you get. Make marketing a part of your culture, and recognize that all contact with clients and prospects can be construed as marketing in some way. Marketing has very little to do with growth in the future. It has much more to do with sanity in the present.

Second, remember that there is an optimum level of client turnover, as long as it is for the right reasons. If client turnover is too low (less than 20% a year), your customer service is great and your marketing plan is poor. Every year phase some clients out with price. If your prices are fair and clients still wince, find them an alternate partner who won’t resent working at that level. Without a steady stream of new clients, you’ll be frustrated trying to re-educate current ones instead of “laying the tiles right” with new ones.

Third, hire (or align yourself with) people who add a deep expertise to your existing ones. When you combine their experience with yours, it is legitimate to claim additional capabilities as a group. This is ethical, provided all claims are true. E.g., if you anticipate that a new client will require expertise beyond yours, partner with another provider up front. That’s more believable to a client than searching for the expertise after they’ve requested it.

Fourth, remember that vertical expertise is more important to clients than horizontal expertise. I.e., a banking client will care more that you know the financial services industry than how much you know about point-of-purchase displays. In a selling situation, this would suggest that you focus on the prospect’s industry (even if you only have one client that fits) rather than providing a laundry list of all the industry segments you’ve worked for.

Fifth, have a marketing lunch with every major client every year. Sit down with them and “re-introduce” them to your firm. Explain the kind of work you have been doing, what staff capabilities are now in place, and what is planned for next year. Remember that perception seldom keeps pace with reality, and educating your clients in smaller increments is more effective.

Sixth, be careful about justifying low paying jobs to establish yourself. You are selling problem-solving. Consider it a success if you get through an entire new business presentation without talking about your work. Focus instead on asking the client what they want to accomplish, how that goal can be measured, and if the approach in mind is the most effective way to do it. Keep asking intelligent questions and the client will be more likely to assume you know what you are doing. And when you get the project, you can do what everyone else in the industry did at the beginning: call the office on their cell phone and try to figure out how to deliver on the promise they’ve just made!

Seventh, wait for the marketing manager (or whoever your contact is) to leave their position at the client, and then pounce. Most new decision makers want to make their own mark immediately. That means bringing a new provider to the table (usually one they have worked with in the past). Since your chances are not as good, you have little to lose. Send them a memo that says: “Here’s our resignation from the account. We are resigning for two reasons. First, we recognize that any decision should be yours and we want the job only if you give it to us. Second, we have not been able to move beyond ‘vendor’ in this relationship, and it needs a fresh start. Please let us know if we can be your ‘partner.’”

Finally

Recognize that clients smell lack of confidence. They’ll generally believe anything you tell them, provided you say it with confidence. If  you say you can do something, they’ll usually say “yes” and move on. And how much you charge is a big indicator of confidence.