The REAL reason for lost clients (and referrals)

Michelle Golden over at Golden Practices explains that poor service is not, in and of itself, the reason that clients walk away or fail to refer. In fact, she says, the real reason is a failure to understand, set, and meet client expectations:

What are the reasons professionals think they lose or upset clients?

• price/fees
• not "proactive" enough
• poor service
• relationship changed/deteriorated (chemistry)
• etc

Sure, those are all valid complaints. And the REAL, underlying problem, for every single one of these, is that the customer expected to get something different from what they got.

I'll bottom-line it: Clients name these factors when conversations that should have occurred, did not. 

Michelle lays out a great and simple three-step remedy for this problem:

1. Listen/ask/listen more
2. Mutually establish expectations (written is good)
3. Meet them

If something usurps #3, conduct a conversation as early as possible to alter #2. If you cannot catch it in time, apologize profusely and fix it (without assigning blame, please).

Here are some other ideas for ensuring that lack of communication doesn't undermine your client relationships (free registration required):

A 3-Tiered System That Deepens Client Relationships
Are your clients just clients—or are they apostles, spreading the good word about doing business with you? With systematic profiling, service, and communication processes, you can turn ordinary clients into tireless devotees.

How to Turn New Clients Into Loyal, Referring Fans in 90 Days
Are you guilty of neglecting clients once you've won their business? It's tragic how many advisors drop the  service ball in first 90 days. If you don't have a system in place to contact your new clients eight to 10 times in the first three months, you're missing a huge opportunity to build loyalty and earn referrals.

Cement New Client Relationships With a 45-Day Review
A well-trained client is an enjoyable client, so be sure your intake process includes scheduling a 45-day review meeting. Remember, new clients often feel anxious and uncertain with a new advisor. Use this meeting to allay doubt, reinforce value, and hook your client for life.