As if running a business wasn’t tough enough, owners must constantly be mindful that any business transaction is vulnerable to mishap. Sometimes the fault is with the merchant or service provider. Sometimes the client is to blame. Whatever the case, when complaints or disputes arise they need to be dealt with quickly and diplomatically.
Tact works better than temper
No one wants to be the object of an upset or angry client. Yet, such situations are bound to occur from time to time. When they do, the first thing you want to do is lower the temperature. Ask the client to calmly explain to you what the nature of their complaint is. Listen carefully, don’t interrupt, take thorough notes, and when the client has finished repeat back to them as neutrally as possible what they said to let them know you heard them correctly. Once you have established that you both have the same understanding of the nature of the complaint, you can then begin to resolve it.
Regardless of who may be at fault, do not be defensive or argumentative and do not assign blame. Explore with the client what remedy would be satisfactory to rectify the situation. If the client is being unreasonable or overly demanding, present them with a counteroffer and negotiate until you reach a solution that is agreeable to you both.
If the client is being accusatory or abusive, try not to take it personally. Recognize that when people are emotionally in turmoil and feeling put upon they may express that by lashing out at someone. Instead, work to diffuse their anger and shift the tone of the conversation to one that is more reasonable and constructive.
Set boundaries
One way to avoid or contain difficult client situations is to establish boundaries with the client in certain areas. Ideally, this should be part of your initial discussions with the client and, where applicable, written into your contract or letter of agreement.
For example, if you find that a client is reluctant to make decisions or insists on making frequent changes to the budget, schedule or purchases, you need to set a deadline or limit to the number of changes you will accept. Try to determine what is behind their indecisiveness. Explain to them the impact their indecisiveness is having on the project schedule and budget. Sometimes all the client needs is some structure and reassurance to let go and let you get on with your work. Similarly, if a client is questioning an invoice or is delinquent in paying an invoice, you need to set a deadline by which time the matter must be resolved or turned over to your attorney.
The same applies to communications and your time. Let the client know from the beginning when and how often you will be available. Mutually agree on what method of communication you will use (phone, text, email). If the client is frequently contacting you with concerns or complaints, remind them of your agreement and tell them you will deal with their issues at the appropriate time.
Put everything in writing
Your word may be your bond, but in the event of a legal dispute, it won’t go very far in court or arbitration. As a standard business practice, your contract or letter of agreement should address any and all areas where disputes might arise, such as around fees, billing practices, purchases, expenses, payments, etc. In addition, any time you have a communication with the client that involves agreements or decisions made, make sure you follow up with a formal written summary of what was said and agreed upon. Give the client the opportunity to respond to anything they do not agree with and amend the summary if needed.
Set up a complaints procedure
Rather than dealing with complaints on a case-by-case basis, protect yourself and your business by establishing a formal complaints procedure that you share with the client at the outset of the project. The complaints procedure should include detailed information about how to make a complaint and the person to contact; how the complaint will be processed; how the matter will be resolved; and next steps if the individual is not satisfied with the outcome. Because each firm may have areas of dispute particular to its business practices, you should work with your attorney to develop and formalize the procedure. The same procedure can apply to disputes with vendors, suppliers, subcontractors, etc. You may want to post it to your website, along with a sample contract or letter of agreement.
Many, though not all, complaints or disagreements can be avoided or mitigated by timely, clear and thorough communication. Don’t just dash off a text or email that could potentially be misunderstood or misinterpreted by the client. Taking the time to be detailed and exact could save you more time and expense down the road by preventing a potential complaint or dispute.