April 20, 2010

To Over-Service Or Not to Over-Service? Business Leaders Ask The Question

At a recent meeting of my PR Mastermind Group, a think-tank for PR executives, the discussion turned to doing more with less, in terms of how to service clients during these touch economic times.

How do you prioritize? When do you say “no?”

This becomes particularly difficult when you get caught up in “over-servicing” a client ““ doing more than is required or agreed upon for the price you negotiated ““ and then come to the point where you have to push back.

“We over-service like crazy because we want the please the client, but it’s not sustainable,” one agency pro remarked.

These are situations where you run up against your budget and, while there are times you can exceed that budget, there are times when you just can’t, particularly with a smaller staff. Discussing the situation with the client becomes necessary, and sometimes difficult.

“In our agency we over-service by nature,” said another participant. “We don’t pay attention to timesheets. Then we have to push back and we say it will cost you X more, and then they push back. It was very awkward. They’re used to you always saying ‘yes’.”

Another PR pro said her agency doesn’t over-service much, but expectations do creep up. Extra work is determined on a case-by-case basis and seen as a bonus for the client.

Setting expectations up front can be a difficult task. There’s always more you can do, so where do you stop? Do you let a client leave because you can’t go over budget? Do you not pursue a lead for that reason? Because of the economy, it’s a little more appropriate to stop and talk about money with a client now when you get to that point.

Establishing parameters can help. The mentality of “we’re your partner” makes a huge difference. “You need to establish parameters. We’re not just “˜vendors’ ,” commented another participant.

“It’s a very important paradigm shift to not just think of yourself as just a vendor. They’re hiring you because of the value you add. You’re not just “˜doers’.”

“But the flow of money goes only one way, and money has become a much bigger issue with the economy the way it is. A year from now if the economy is better and clients have more money, how does the conversation change?”

One agency PR pro said the way the agency handles projects is different now because of the economy; efforts are shortened, and smaller. When things get better, they will have time to build more. “We’re doing a lot of over-servicing. We’re watching them lose their budgets. We can only go so far so long. You have to prepare to say no’.”

“Time spent over-servicing is time not spent being out there getting more business,” said another participant.

The group agreed that things have gotten somewhat better over the past year. Last year it was “grab and go”. This year things are starting to get back to where they were, though there’s still quite a ways to go. You can see the difference now in terms of sheer volume, and the fact that there are more agencies bidding for business.

“A few months back we were so busy. We’re getting better at “˜pruning’,” said another participant.”We have a good pipeline but you have to pick and chose.”

“When you have a client who understands what you do, it makes a difference,” said another participant. “You have to sell your clients on the value of PR. Here’s what will happen if you don’t !”

SO, how are you going to change the conversation with your clients? What can you differently starting now to create better boundaries (but not barriers:)? I’d love to hear your thoughts.

Related posts:

  1. IT’S ALL IN THE RIGHT QUESTION: CREATING A SHIFT IN OUR THINKING IN THE NEW YEAR
  2. Balancing the Needs of Staff v. Clients

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