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Every entrepreneur knows the feeling – a sinking feeling in the pit of your stomach when you know you’re going to have to share some not-so-good results with a client. You preoccupy yourself with work to justify not picking up the phone. You write the email but don’t send it until Friday evening to delay the inevitable as much as possible. No one looks forward to talking to customers about poor performance, but these conversations are essential.
In fact, if you need one, it should be a top priority and not a chore. All conversations with customers, especially the unpleasant ones, are opportunities for growth.
Related: 5 Strategies for Navigating Difficult Conversations in Your Company
Procedure for transmitting performance messages
Honesty is always the right strategy when discussing performance with customers, whether things are going well or not. Some people may shy away from conversations about performance, especially if it doesn’t meet expectations. They may try to justify their decision by arguing that if the customer doesn’t initiate the conversation, there’s no need to rock the boat. This is the wrong approach.
Be proactive and show your customers that you are on top of things rather than engaging in conversations about performance. You need to know the reasons for the results achieved and understand the strategy for the future, especially if things do not go as planned. A customer may not be satisfied with the current performance of a marketing campaign or the launch of a new product. Still, they will appreciate that you are proactively reaching out to them and willing to initiate the conversation. And as much as you may dread having a conversation about it, your customer will be even more irritated if they have to track you down to get answers.
Honesty really is the best policy
It’s never a good strategy to underestimate poor performance to avoid a customer’s anger. It will only increase their negative feelings and destroy their trust in you. Customers need to know the truth, even if it is unflattering to you and your company. They will respect you more if you are direct and honest, rather than trying to downplay an issue that has real consequences for their company. They may not be happy about unpleasant news, but as entrepreneurs themselves, they should be able to understand that performance will not always be great and some things will not work as well as they would like.
Likewise, ignoring a performance problem rather than acknowledging it will damage your relationship with your customer, often irreparably. If a campaign isn’t going well or a product isn’t gaining traction and you know you’ve done everything you can, it’s better to acknowledge it, talk to the customer, strategize a new approach and get back to it to get to work. By doing this, you minimize 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 you to work in their best interest.
Related: 7 Ways to Have a Difficult Conversation Without Losing Your Customer
We’re on the same team
Having a difficult conversation about performance should never be a struggle. As a business owner, it is important to acknowledge shortcomings and focus on solving the problems they caused without blaming, deflecting, or becoming defensive. The correct way to deal with a difficult conversation is:
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Listen to the customer’s needs, concerns and questions
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Help the customer understand what happened and why
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Acknowledge any mistakes or shortcomings on your part without being overly apologetic
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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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Suggest solutions to improve performance in the future
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Let the customer decide how to proceed based on the remedies you recommend
Your customer may want to point the finger; If this is the case, it is important not to shift blame onto them, even if their decisions contributed to the unsatisfactory results. A true professional is solution-oriented. Conversations are always more productive when you have ideas about how to get back on track. It shows that you worked proactively on behalf of your customer rather than allowing the situation to stagnate without intervention.
Dust yourself off and get back to work
No one is 100% successful from the moment they start their business, and occasional poor performance does not equal failure. It is also not helpful to judge yourself because of negative results. We learn from our mistakes and the obstacles we encounter on our path to success. So if a plan doesn’t work as expected, don’t give up trying. Use your skills and creative mind to solve the problem and find a better way to achieve the goal. Your customer will be more receptive if they know you have an optimistic attitude.
Related: How to Prepare for Difficult Customer Conversations
Tough conversations about performance shouldn’t be the norm for any company, but sometimes they’re unavoidable. We all have a few mistakes behind us. How we deal with our customers and within our company is what sets us apart. An entrepreneur who is willing to admit when their plan was unsuccessful is a person who is willing to grow.