How to protect your business from difficult clients

Every business will face a difficult client at some point during its lifetime. It can be hard to remain positive and behave professionally when being faced with difficulty. However, your reputation may be on the line if you don’t deal with a difficult client properly.

Protecting your business in this type of scenario can be hugely important. If you want to keep your business running smoothly when facing challenging clients, here are a few tips.

1.    Manage expectations

One of the best ways of avoiding difficult clients and protecting your business is right from the outset. As soon as a customer comes into the funnel, it’s important to set boundaries as a business. If you have deadlines or timescales you work too, explain this to them from the beginning.

Companies can set expectations through terms and conditions, policies and contracts and getting both parties to agree. It’s always best to be realistic about what you can achieve and err on the side of caution. Even if you then meet their requirements early, it means they can be even more impressed with the service they received.

It’s important not to make promises you can’t keep as you are more likely to meet repercussions further down the line and cause problems. Always be clear on what your terms of business are and get it in writing to avoid possible negative interactions with clients.

2.    Provide solutions

When problems arise with a client, it is always best to provide alternative solutions rather than just say no. It can get a better reaction if you work with your clients to find the best solution that is achievable on both sides.

By presenting them with options, it shows you can, but also allows them to make their own choice so they feel they have more control. By making it clear you will do what you can to resolve the problem, it is more likely you can come to an agreement.

3.    Communication is key

If things do go wrong, communication can play a huge part in getting things resolved. Customers will feel more valued if you keep them informed every step of the way as you work to rectify a situation or find a solution to an issue.

In addition to this, it’s always worth speaking to a customer face to face or over the phone rather than just via email. By adding a personal touch, it can add value as well as help make clearer decisions. It may also help to avoid further confrontation. If things escalate, having a senior member of staff communicate can also help.

4.    Maintain professionalism

Confrontational situations can be stressful and difficult to deal with. Maintaining professionalism at all times can help when it comes to resolving a situation. Compose yourself, approach the task at hand rationally and respond diplomatically.

It doesn’t mean that you have to back down. You can still assert your authority, but by remaining calm it can help to prevent any further actions.

Training employees to deal with these scenarios calmly and effectively can help too. It can ensure all difficult clients can be dealt with from any point of contact rather than escalate further.

5.    Purchase professional indemnity insurance

If you have a really bad experience with a client, it can have a financial impact on the business. Professional indemnity insurance or Errors and Omissions protects your business if a claim is made. It can also help to cover legal cases, court fees or compensation.

When situations arise, let your insurer know immediately. They may be able to offer advice on how to resolve the issue without causing the need for claims. Going to court can be expensive, so always make sure you’re covered against the worst-case scenario.

6.    Cull bad clients

If clients are more hassle than they are worth, then it’s not always beneficial to maintain a relationship with them. Sometimes, it may be better for business to cut ties.

Time and resources may be better spent elsewhere. It also can reduce employee stress when dealing with difficult clients. Maintaining a toxic relationship with a difficult client isn’t good business sense. It’s important to understand when enough is enough and know what’s best for business.

Protecting your business when facing a difficult client can be tough. But it’s really important if you want to continue running businesses smoothly to understand how to deal with it effectively. Get insurance for worst case scenarios, but also manage expectations from the start. Communicate with your customers throughout their journey and you’ll be sure to keep your customers happy.

Advice on finding a professional indemnity provider

When choosing a PI insurance broker there are a few things you should look for to ensure you get the best policy.

Are there options to tailor the policy to your business needs?

Don’t pay over the odds for cover that you don’t need.

Does the broker understand your business?

Have they taken time to find out the ins and outs of your business, and what previous experience do they have in PI?

Do they provide flexible payment terms?

If your business is worried about cash flow flexible payments will

Do they have a dedicated claims team?

In the event of a claim you need to be confident they will be dealt with swiftly and efficiently.