Clients You Don’t Want
When and how to fire a client.
The last thing an agency wants to think about is losing a client, but there are some clients that an agency is actually better off without. As a general guideline, a client that is using up a lot of your time and resources, and returning little in the way of profits or positive experiences, with little potential for change, is questionable. And when that client is also the most painful part of your day, every day — it’s time to consider a parting of the ways.
Understand What Happened
First, ask yourself, is it us or them? Next, ask yourself what’s really going on. There are some bad businesses out there: unhappy companies staffed by unhappy people doing unpleasant jobs. And there are also some relationships that just don’t work, because the chemistry just isn’t right.
Talk to the Client
If you have decided that resigning the account is the best thing for both them and yourself then the first thing you need to do is tell them. Face to face. Keep the language impersonal and non-judgmental. Don’t blame them. Or yourself. Instead talk about what’s not working and why you’ve reached this decision.
After you have presented your reasons, listen to their response. Sometimes a direct conversation like this can serve as a turning point, and begin the process of renegotiating the relationship. Sometimes it will elicit a defensive reaction from the client who will ask you to reconsider your decision. Just be sure going into this conversation that you know your real willingness to consider a reconciliation or not.
Whatever you choose, it’s important to emphasize that this move is the best thing for both of you: change brings new opportunities, and a new chance at achieving your individual goals.
Have a Plan
Assure the client that you will help the transition to their new agency. Present a timetable (typically 90 days) and a plan for transferring all files and digital assets to their new agency, with an estimate for the associated costs for those services. Try to get a written — and signed —work order for your plan.
At the same time you will need to address for yourself how your agency will make up for the loss of revenue, and how you will rededicate the people and resources that you presently have servicing the client’s business.
Make Sure You Learn Something
Learn from your mistakes. What got you into this situation? Did the relationship go bad over a particular issue? Did you take them on not because it was a good fit, but because you were over-eager to land a new client? Did you underbid on pricing to land the client, hoping that you could quickly grow their budgets? Did you take on a known “bad” client thinking that you could make them a better client? Whatever the situation, strive to understand it so that you don’t make the same mistake again.
Every agency wants clients, but that desire can sometimes overcome our common sense when pursuing a new client. Choosing your clients is choosing who you’ll spend your days with, and what you’ll be doing. So remember to choose wisely. And like with any relationship, remember there’s always more fish in the sea. Don’t believe it? That’s one we can prove to you.