It happens all the time. A long-standing client asks for a simple favor. It might be an 'add on' to an existing project or an entirely new project that he/she wants done on the cheap. Regardless, learn how to just say 'no.' it will save you time, money, and maybe even your reputation. In this post, Gini Dietrich of Arment Dietrich explains the concept of scope creep. (reprinted from PR Daily)
It doesn’t matter how clear your proposal was or how beautifully you designed your scope of work. You’re going to get clients who seem to have bought something totally different than what you sold.
Whether they didn’t communicate what they needed well, made assumptions about what you do or asked for things that you don’t have expertise in (yet), the problem of over-servicing comes up with surprising regularity.
You’ll be tempted to just give them what they want.
If there’s a tiny bit of scope creep, or maybe you’re not perfectly up to date on that skill just yet, you can fake it until you make it. Right?
Don’t do it!
When you do, there are two things that can end up happening, whether it’s because you knowingly took on too much, or because you felt obligated once you started working with a new client.
- You’ll overservice, costing you your profit margin.
- You’ll underdeliver because you oversold.
Let’s take a quick look at each of these and how they end up happening.
Overservicing isn’t really helpful.
This is probably the more common mistake, because it comes from a really, really good place. You want to deliver the best possible customer experience, and you want to add so much value that your clients never even dream of working with another firm.
You will not only lose money and time, but also start resenting your clients and feel misused. You end up working for free and you don’t have the capacity to bring on clients who will pay you for the time you are currently giving away for free.
It’s an easy habit to get yourself into, but can be hard to break. To avoid having to deal with it at all, commit to these essential practices:
- Clear scopes of work
- Clear budgets
- Confident boundary setting when a client asks for more than was initially discussed, or that goes outside of your mandate
You never have to be rude. Just treat your scope of work and budget as if they are indelibly set into stone unless a new agreement or amendment is mutually agreed upon—and funded.
If your client isn’t in the habit of hearing that from you, it can be a bit jarring for them, but in the long run, you’re helping everyone by having clear boundaries and limits—and by enforcing them. You’ll be happier doing the work, and most clients have no problem with you making a respectable profit!
When you run an agency, it’s important to make sure all of your account managers are comfortable setting and enforcing these kinds of boundaries, as well. Many people have been ‘trained’ through past work to overdeliver, and modeling the kind of behavior you want, as well as making it your standard operating procedure, will help break them of the habit.
Overpromising is just as bad.
This one is painful because it comes from a place of confidence and hope, but can really come back to haunt you.
You’re talking to a prospect or a client. They’re excited, and you’re excited, and the they ask for something that you really don’t do that much, or that often (or that well). Perhaps you’ve never done it before.
Yet, you want this account or this extended project work. You don’t want to tell them no. It would be a major feather in your cap, bring you into a new service area, or financially make your quarter.
Here’s how it can play out.
A few years ago, a client who has been with us for 10 years now asked for a new website. but he said he only had $5,000 for the project and asked if we could do it.
Today I would have told him:
- We don’t have that capability in-house.
- We are not web designers, and he was going to have to hire a web firm and pay more than $5,000 for what he wanted.
However, I was in that stage of my career where I was learning how to build WordPress sites, so I did it for him. When I looked to see how much the project cost my agency, it was $65,000. He paid $5,000.
It cost me/the agency $60,000 in time.
And guess what happened next? They ended up hiring a real web design firm a year later and paying them $100,000 for a new website.
How to kick the habit
Instead of saying yes to anything and everything, make sure everyone who talks to prospects or clients knows:
- What you can knock out of the park
- What you can do in small doses as you improve and hire more talent
- What you really shouldn’t focus on for the time being
No one has ever looked bad for saying: “This isn’t our area of expertise. Would you like me to make a referral to a great agency that specializes in this?”
Making referrals to other firms makes you look confident in what you do provide, and you build relationships with people you’re happy to recommend.
When you do want to expand into more service areas, make sure you’re ready, and that you have the team and talent in place to take your best shot at it. Starting with a small or internal project can be a really good way to get your feet wet, and one that won’t put your reputation and relationships at risk.
You might need to have some challenging conversations with clients, and it won’t be fun in the moment, but it will be excellent for you in the long run.
As appeared in PR Daily. Authored by: Gini Dietrich, the founder and CEO of Arment Dietrich, an integrated marketing communications firm. A version of this article originally appeared on the Spin Sucks blog. Photo credit: PR Daily.