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Home » Business And Finance Articles » Reviving Dead Clients

Reviving Dead Clients

Most consultants I've talked to don't spend any time trying to recover inactive clients and it's a big mistake. We tend to magnify the problem we had or just want to move on, but sometimes a simple apology and offering to make things right will bring you back a client worth thousands of dollars in billing.

Clients can quit contacting you for a number of reasons:

They had a bad experience.

They no longer need your product or service.

As their needs evolved, they believed your company no longer could offer what they need.

They just got busy and forgot about you.

You can see how important it is to have a communication process to stay in contact with clients as some quit calling for the sole reason of "out of sight, out of mind." Think about all the vendors that you've stopped buying from for no real reason. It happens to everyone.

There are clients that you have consciously let go because they are bad clients. I recommend consistently "firing" the bottom 5-10 percent of your client base as a regular practice. But most consultants have an attrition rate higher than that.

Make a Target List

Go through your database making a careful list of clients you have done business with in the past but are no longer buying from you. Cross out those relationships that you have no interest in reviving. Next, categorize the remaining list using the following parameters:

Don't know why they're inactive

Was a problem but you thought you resolved it

Was a problem but you didn't resolve and would like to win them back

Determine how much the client spent with you.

Date of last purchase. You'll want to focus on more recent clients first and work through to a point of diminishing return.

The first thing you need to do is get excited. With a little diligence you can revive 25-50 percent of these clients and dramatically increase your revenue base. The key is humility, sincerity and resolve.

The Disgruntled Client:

Understanding What They Want

Before you contact the inactive client it's important to spend some time focused on the outcome. You need to be prepared and anticipate their reaction to your call. Disgruntled clients have certain needs that have to be met before they become active again. Below is a checklist to review before you make each call:

They want to be regarded and respected

They want you to make things right

They want to be listened to and heard (two different things)

They want to insure that the problem doesn't happen again

They want you to understand the problem and why they would be upset

Don't defend yourself or make excuses. Acknowledge that it shouldn't have happened. You should be prepared to make an offer to resolve the problem and communicate your willingness to go great lengths to win them back.

Making Contact

The next step is to simply pick up the phone. Call them and ask to meet face to face. Assure them that they are a valuable client and that you'd like to know if there is anything that is keeping them from doing business with you. You must communicate your absolute sincerity and concern.

If the client had a bad experience, regardless if it was your fault, try to make it right. Offer to refund their money, correct the problem and give them a discount against future services or whatever would be appropriate in your particular situation.

Apologize no matter whose fault it is. The client is always right. They write the checks and in an economy that is driven by customer satisfaction, you have to go the extra mile to stand above your competitors.

Be prepared for the fact that you will not resolve every situation. You may get screamed at or abused. Stay the course, be calm and reiterate your sincere apologies. In some cases there will be no possibility of reactivating them or getting a rational response to your call. If you are professional and earnest, the worst that can happen is they will feel better about the situation and won't complain to their associates about your company, which can be damaging. Send the people a sincere letter thanking them for assisting you in identifying problem areas with your company.

You're in the Spotlight, So You Better Shine

If they do agree to accept your effort to resolve the issue, whether it's in the form of redoing the work or free products and services, then you must be exemplary in the execution of the promise. Get a clear understanding of your commitment and the timeframe for its completion. You must go the extra mile here.

Communicate when you've fulfilled your obligation, thanking them for the opportunity to clear up the problem. Send a sincere letter reiterating your appreciation for working with you to resolve the misunderstanding. Depending on the type of work you do, simply maintain regular contact to inquire if everything is working, and if there is anything you can do to be of service.

Getting in Touch with Old Friends

Often you'll find that former clients are having financial or other difficulties that have prevented them from continuing business with your company. Express your genuine and personal response to their problems and find out if there is anything you can do to help. People remember who was around when they were down. A small gesture here goes miles in referrals or when they get back on their feet.

There are also the clients that have grown, or changed technologies, and now feel that they need to work with a bigger organization. In a lot of cases it's really just a perception problem. Tell the client that you've grown too and that you're ready to meet their needs.

If you truly can't serve them, let them know how much you've appreciated their business and invite them to contact you if there is anything you can do for them in the future. If they were satisfied with your services, don't hesitate to ask for referrals. Be sure and follow-up with a letter.

Finally, there are the old clients that simply forgot about you. In some consulting businesses, it might be appropriate to systematically send out a letter to clients to stay in touch and acknowledge that you haven't heard from them. Come up with several that are appropriate for your particular consulting business and send them out at specific times relative to the last purchase.

You need different letters because the reasons for a lack of buying vary from client to client. Track each mailing so that you can refine the process based on which letters garner the most responses.

If it's appropriate for your business, send clients a coupon for a free hour of services. The perceived value is high and they will be inclined to use it to initiate future work.

And here is another random article you might be interested in...

Choosing the Right Debt Management Service

Regardless of age many consumers are guilty of committing financial suicide. For some people juggling bills and robbing Peter to pay Paul is a vicious and endless cycle. The average American lives ten percent beyond their means. For the individual who lives beyond their means, managing finances with the aid of debt consolidation may be the only solution.

Over the decades, there has been overwhelming controversy regarding the efficacy of debt consolidation loans. The truth of the matter a personal loan such as a consolidating loan depends on the lending institutions' terms, policies, penalties and interest rate. Generally, consumers who are financially stretched have the propensity for opting for the wrong debt consolidation program.

Review the various types of debt management services to understand the different bill solutions.

Credit Counseling

Credit counseling is recommended for the non-disciplined consumer. Let's say that you are unable to devise a viable budget and you do not have the discipline to follow it. Credit counseling is excellent way to keep the indebted on track of with a growing pile of bills. Not to mention, creditors are more apt to accept a reduced payment plan when the debtor enters a debt repayment plan.

Credit counselors charge the indebted in one of three ways. Certain credit counseling agencies charge nil to a nominal for managing one's debt. Through the contributions of creditors others credit counseling services are compensated for their services. At the same token, some charge a fixed monthly fee. For the consumer, the monthly charge can add up substantially.

Basically, the credit counseling services requires a monthly deposit with the credit counseling service agency. In turn, the deposits are used to make payment to creditors according to the devised schedule. Some agencies require that participants must agree to -- not using or accruing any additional credit or debt during the program.

Managing personal finances with a credit counseling service achieves results between 48 months or more. Since debt consolidation involves a timely repayment schedule shop and compare credit counselors with debt consolidation services to compare which will have the shortest term.

The underlying advantage of a debt repayment plan is its ability to alleviate great stress and improve your credit score. Alternatively, using a credit counseling service will not eradicate all debt. The drawback is that a consumer may forget their other debts that are not included in the plan. The debtor should remember to review their monthly statements to confirm that the payments are being made and received.

Finally, just because a credit reporting agency takes over the payment of the indebted bills, it remains the consumer's responsibility to confirm that creditors have maintained their promise to eliminate or reduce both interest and/or finance charges.

Debt Repayment Plans

Unlike credit counseling service and debt consolidation loan, debt repayment plans do not remove or erase credit history. According to the legislation of the Fair Credit Reporting Act (FCRA), any accurate information pertaining to an account may remain on the credit report for up to seven years. Not to mention, the creditors may continue to convey information about accounts handled via a debt repayment plan. Any payments with special concessions, missed or tardy payments, write-offs or other may be reported by creditors. They are authorized to even report accounts that employ any type of financial counseling.

Debt Consolidation Loans

Unlike credit counseling services and debt repayment plans, a debt consolidation loan will not tarnish a person's credit. In fact, a person can take out a loan and repay all other bills. Generally, debt consolidation loans reduce the interest rate or stretch out the repayment period of the borrower's monthly payments. Then the indebted is left with one concise bill. However, the downside may be a high interest on the going price of your debt. Nevertheless, for the person planning on a making a foremost purchase or applying for a new job, managing your finances with a debt consolidation loan, can upgrade your credit rating.

The debt consolidation loan is ideal for the disciplined consumer. For the consumer prone to living beyond their means, a debt consolidation loan is not recommended because the person may be tempted to mount more debt.

Personal Financing Strategy: To curtail credit card debt avoid charging until the balance of each bill is under wraps. To practice responsible charging, only charge what can be afforded to repay monthly.

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