This Is All It Takes To Lose A Client. Why Your Relationships May Be Weaker Than You Think.

I’m leading a series of day long strategy sessions with a large, well respected CRA to review, revise and implement solutions that will grow their business and generate even more profit in 2020. 

After our last session, I wasn’t out of their headquarters for more than a half hour when serendipitously, I saw a message board comment send to thousands of HR people blasting my client over turnaround time and service response. So not only is there a complaint from an enterprise level client, thousands of decision makers (some of which were their clients!) heard a negative message about this CRA.

Making matters worse, this is the kind of client everyone wants. A $100K client that orders beefy background checks. A lot of components, not just current county + a database search. Good margins, and low CRA compliance risk because they’re not in a 40% hit industry.

See, while I’ve served in operational roles for most of my 20 years as a screener, those who personally know me know I’m a service guy first, second and third. Operations is simply the vessel that delivers that vision of service. 

So this reminded me of three core service principles I’m passionate about and talk about whenever I get the chance. 

1.     You determine the frequency and volume of client complaints

2.     How (and how quickly!) you respond determines whether the client stays

3.     If you’re not constantly framing and positioning your value to your client, they get to frame and position you

Let’s break each down…

1.     You determine the frequency and volume of client complaints

At scale, stuff’s gonna happen. Your decisions around processes and procedures dictate how often. And how often dictates the risk of losing a client. 99% correct hits an enterprise client once a week. Do you prefer to spend your time and money on the support side crediting, apologizing and funding your liability pool, or on the ops and compliance side getting to 99.9%? 

2.     How (and how quickly!) you respond determines whether the client stays

I shot my client the details of the complaint. Inside their offices, the historical data told a different story. The HR person was a newly hired user who hadn’t worked much with the CRA.

Within 15 minutes this CRA had a post on that site from an executive with awesome KPI’s specific to that client, as well as personal outreach from the director of client services. 

15 minutes! Remember, this was not a small shop. But it was important enough to get in front of it clearly and forcefully. Especially for other readers (and clients!) who may form a negative impression. And now, the CRA gets to announce some pretty positive KPI’s, respectfully, to a 1,000+ readers.

The research on service recovery is pretty clear. Resolve it well and a client thinks more highly of you than if the problem never occurred. 

This CRA also benefited immensely because their system throws off actionable, specific KPI’s quickly. So many in our space, 3rd party or proprietary, can’t. 

A 90% solution the same day is better than a 99% solution a week later. How quickly could your shop respond?

3.     If you’re not constantly framing and positioning your value to your client, they get to frame and position you

I spoke at a recent PBSA conference on how account reviews increase sales and limit client defections. Clients get the 7 year itch, a new decision maker takes over, they don’t remember the pain you fixed when they signed up 3 years ago, another HR service provider or ATS has a bolt on screening solution, or they simply got curious and flirted with a competitor that called last week. 

That’s FIVE ways a client leaves you for reasons completely independent of your performance. And ALL of them happen behind the scenes without your knowledge. 

You need to constantly remind clients of why you have been, still are, and will always be their best friend. How no one can love them, let alone like them, as well as you do. 

By following these 3 principles and making yourselves invaluable, you better protect your organization, your revenue, and your profit against the inevitable slip!

More clients. More compliance. More profits. That’s how you build an empire. 

Kevin Bachman is The CRA Doctor, a background check executive providing financial, strategic and operational counsel to owners and senior management. He also helps employers create optimal screening programs and find the right CRA to fit their needs and budget. He is the Host of Background Check Radio, available on iTunes. He is available for speaking engagements and onsite training sessions and can be reached at [email protected] or 216-509-2108.