In our February 10 Second Survey, we asked Professionals how they discuss “value” with their Clients. Over 50 Professionals responded with some very interesting results.

Determining value

Our first question was about how Professionals determine what is of value to their Clients. We provided a number of different choices and allowed respondents to select as many answers as were appropriate.

It’s interesting that a third of Professionals don’t ask Clients about value but rely on their industry experience to just know what a Client finds valuable. This methodology rests upon the assumption that all Clients value the same things.

No doubt, some Clients will hold some common expectations or values. But there is great danger in assuming every Client is the same. First, from a Trust building point of view, this treats the Client as a “type” or “number” which is never a good foundation for Trust. No-one likes to be taken for granted, treated the same as everyone else or to have assumptions placed upon them. It’s lazy at best, arrogant at worst.

Furthermore, if the Professional lacks knowledge about specific expectations or values of each Client, it is typically in those unknown areas that the Client feels let down. This is purely because the Professional had no idea the Client valued those areas and therefore didn't pay them the appropriate attention. This is often the cause of the Client who leaves for no explicit reason – turns out there was a reason, it is just that the Professional didn't know it. The problem is compounded by the fact that not all Clients complain. In fact, Client surveys continuously reveal that less than half of Clients actually complain when they have a problem. The rest just get fed up, disengage from the business, complain to friends and, ultimately, leave.

Finally, Professionals need to realise that the expectations and values of a Client change over time. What is valued by a new Client versus a long-term Client is very different. Professionals should be asking Clients about their expectations and values not just at the start of the relationship, but also on an on-going basis through the life of the relationship. Things change. Don’t assume – find out.

Discussing value

Our second question was about how Professionals discuss value with Clients at the “back end” of service delivery. Once again we provided a number of options to choose from.

Discussing delivered value with Clients in services is a critical piece of Client retention. Looking at the above results, we would want Professionals to be in either of the two outcomes at the top of the graph – Client meetings to discuss both tangible and intangible value delivered. In this survey, only 40% of Professionals claimed to be doing this.

This means the other 60% of Professionals are either just meeting with their Clients to discuss some form of tangible “deliverables” document (like a proposal, statement, advice, results)…or even less. What this says to Clients is that they should judge (and value you) purely on the outcomes document. This is a dangerous message to send to Clients.

First, it commoditises your service and advice, as you tell your Clients that the WAY you achieve your outcomes is irrelevant – it is only the end that matters. This conditions Clients to “cut to the chase” in their discussions with you. What’s the price? What outcome can you promise?

It also means that in the event your outcome doesn't quite measure up, your value discussion is going to be very difficult. This can be a problem when some aspects of the outcome are outside your control (legislation, markets, etc…).

Finally, it also promotes a culture of “ends justify the means” within your own business and staff. If your staff don’t have to review their service delivery – in writing with Clients - it conditions them to ignore Client service in favour of Client outcomes. This is a huge failing with many Professional firms which manifests in Clients getting upset or disengaged through the service delivery and the Professional desperately trying to re-engage with the Client by the time the outcome is finally achieved.

Summary

Managing discussions of Client value is a front-end and back-end process. At the front-end, Clients should be asked about their expectations and what they value in the service, relationship and outcomes. This should occur periodically through-out the relationship. At the back-end, Clients should be presented with a document summarising total value delivered (tangible and intangible) through the service process…ideally matched back to their initial expectations or values.