How to Protect Your Business from Difficult Clients – 6 Key Tips

protect your business from bag clients

No matter your industry, difficult client relationships pose a problem. And as much as we hope we can avoid them, they are inevitable. In other words, we can’t do business with them, and we can’t do business without them.

Difficult clients are learning opportunities. They teach us about conflict resolution, spotting your dream client, and how to improve our products and services. On the other hand, they also threaten your business as unhappy clients are potential liabilities.

Let’s discuss some strategies for dealing with “bad clients” without sinking your business prospects.

I | The Cost of Difficult Clients

the cost of difficult clients

It only takes one bad review to tank years of work. Think of a tiny hole sinking a massive ship. We’ve seen it happen.

Social media makes it easier for bad reviews to circulate. Depending on the severity of the problem and how well you handle it, your business could emerge stronger for it, or you may lose reputational credibility.

“Bad” clients span a spectrum. Some are unprepared, and this prevents them from giving you proper instructions. It lengthens the process with all of the revisions and the back-and-forth indecisions. Then there are the entitled ones, who are often combative and rude and create toxic work environments.

Let’s break down the categories of challenging clients you may encounter.

II | Difficult Clients and How to Categorize Them

types of difficult clients

1. Dizzy Lucy 

Dizzy Lucies leave you spinning in circles because they don’t have any sense of direction. They have no idea what they want. If they don’t know, you’re likely to miss the mark no matter what you do.

Some Dizzy Lucies understand and acknowledge they are the problem. Others may put the responsibility on you to read their minds. And if you don’t deliver something they like, it’s a red mark against your skills. It makes the whole process frustrating and tedious.

It sucks up all of your time, and you’re not receiving adequate compensation for your maximum effort if you charge a flat fee. Likewise, you may squabble over the final bill if you charge by the hour.

2. Chicken Little

For Chicken Littles, the sky is always falling. They have all these changes and revisions and want it back as soon as they send them.

What’s more, Chicken Littles always send changes last minute. Changes that, depending on the scope and type, take time. This is time they never seem to have because…the sky is falling. Everything is urgent until they are the ones who need to respond to emails and make timely decisions on project changes.

3. Know-it-all Nancy 

Have you ever encountered a client who knows everything, and you wondered why they hired you in the first place? These are the Know-it-all Nancies. They question your expertise at every turn, relying more on their limited knowledge than your years of experience, often leading to creative clashes.

Like Dizzy Lucy, the Know-it-alls leave you drained and questioning your abilities and why you chose your job in the first place. They can also become argumentative and disrespectful.

4. Naggy Hatty

These clients are almost like the know-it-alls but on another level. They micromanage everything you do and are often rude and condescending. They don’t act as if they know everything; they can’t release complete control to you. Naggy Hatty clients are overly demanding and create an uncomfortable and combative work environment.

5. The Ghoster 

With a Ghoster, everything starts fantastic. You’re thinking, “yay, what a great client,” then poof, they disappear. You’re sending emails for feedback and follow-ups and expecting a timely response that never comes. Their delayed replies leave you and your team twiddling your thumbs, wondering what’s happening.

Some Ghosters even pop up later, asking for refunds or project resumption as if nothing happened.

Be ready for the bumps in the road.

Handling these common types of clients and their disrespectful behavior calmly is tiring. How much of a challenge you’ll face also depends on your personality. Let’s face it, some of us can handle the hassle better than others.

As you can see, bad clients aren’t only bad for business; they are terrible for the mental health of you and your team. Don’t leave these matters unaddressed, but don’t blow a gasket either. 

Let’s go over those tips for dealing with toxic customer relationships.

III | 6 Key Tips for Dealing with Difficult Clients

ow to deal with difficult clients

There are no simple solutions for avoiding conflict. Customer issues are part of doing business. Your business skills, however, can limit the occurrences.

1. Set realistic client expectations.

The tone you set from the start of the onboarding process should cover the following:

  • Expectations;
  • Deliverables;
  • Deadlines/Timelines;
  • Work process;
  • And also your working hours and availability for communications.

Inform potential clients about what to expect from working with you. Start communicating the above elements from your service page. Once a customer contacts you, reiterate the same information in a more condensed version.

Pre-onboarding consultations are your friends.

This first step is where you do most of your weeding before adding anyone to your client list.

You can filter Dizzy Lucies during the consultation phase. Use this time to ascertain if they are prepared to meet their responsibilities. Their role involves but isn’t limited to knowing what they want to provide proper instructions.

Clarity is essential.

Address during the call any concerns your clients may have upfront during consultation. Assure the potential Know-it-all Nancies you know what you’re doing by introducing some of your past work and asking about immediate concerns.

Provide for the potential Chicken Littles and Naggy Hatties a clear outline of the perimeters you’re both working in. Note the respective obligations in terms of deadlines, timelines, and communications.

Be clear on the communication process, your work hours, and the channels for sending correspondents with Naggy Hatties. They’ll send you the most follow-up emails and get snippy when you don’t respond in a flash.

Outline for the Ghoster what happens when they renege on their client commitments and your refund policy.

Get it all in writing.

Once everything is agreed on, draft a detailed contract or adjust the contract template based on the consultation call.

Signed contracts are your legal reference should conflicts arise. They protect your business from disgruntled clients. Put everything in writing and always get it signed by your clients.

A last note

Don’t over-promise anything for the sake of reeling in clients. Once they come, you better be able to deliver. And if you don’t, or can’t, most of your unsatisfied clients will let you know. And some out of that bunch won’t keep their complaints in the emails private.

Many customers reference review sites like Angie’s List, Yelp, and Yellowpages when seeking products and services. These reviews can make or break your business.

2. Maintain control of the process.

You set the tone, and you need to maintain control of the process as well. You’re holding the reigns. Make the first move in reviewing the tasks at each step. 

Taking control also means staying one step ahead. Give gentle nudges for approaching deadlines, especially to your Ghosters.

Don’t be steamrolled by your Know-it-all Nancies and Naggy Hatties. Stick with the boundaries you set and agreed on at the start of the project. Being assertive is not the same as being rude. When it comes to unruly clients, standing your ground is necessary.

3. Stay calm, be professional, and avoid lengthy discussions.

As I mentioned before, being assertive with a challenging client does not equal being mean. Be professional yet firm in guiding the process. Be calm when dealing with confrontational situations. Naggy Hatties will test you.

While you’re at it, keep discussions on point and avoid the back-and-forth about who’s wrong or right. Focus on the issue and assure your client that solving their problem is your top priority.

How you handle these tense situations will prevent problems from escalating. At least on your part. Some clients are merely aggressive by nature, and no matter what you say, they will blow up.

Train employees about the importance of civil conflict resolution in responding to customer rudeness. Build the guidelines into the company policy.

4. Provide a fast and effective solution.

Who’s wrong or right falls at the bottom of your attention list. At the top of that list are results. The fastest and most effective solution available. This point goes hand in hand with maintaining control over your processes.

Unsatisfied clients won’t stop calling and emailing until they receive a resolution to their problems. If you take too long, or they think you’re not taking it seriously, or you might be the Ghoster, brace for more trouble.

And by more trouble, I mean a thrashing on social media. I’m not going to try and pretty it up. Negative online reviews can be damaging and costly for your business.

Customers want reliable service. Short of that, they expect fast and effective resolutions to their problems.

5. Consider cutting ties with bad customers.

You may need the money to pay bills and other expenses, but your mental and physical health is at stake.

Sometimes, things get so bad the only way to fix the situation is to disengage. Canceling a client is not an easy decision, especially if they are one of your major clients. If said client causes more negative tension than they are worth, cutting ties may be best for all involved. Even your client.

Neither of you is getting much done if disagreements consume most of your time.

Maintaining toxic relationships with difficult clients hampers your business. It heightens stress and lowers morale. If all other diplomatic resolution channels fail, it’s time to cut your losses.

6. Learn from the experience you have with bad clients.

This tip is not so much about dealing with bad clients as it is about avoiding them. At least those of your own making. Customers aren’t always right, despite what you may have heard, but sometimes they are.

Some bad clients rise out of the crevices of bad business practices. Overpromising and misrepresenting your offerings and skill level are examples of those practices. If clients visit your website and see all the lofty promises, they expect you to deliver when they sign up. When you don’t, some might quietly cut their losses while others will become difficult clients.

In this instance, it’s not their fault; it’s yours. You’re the one who fostered false expectations because you weren’t honest from the start.

Likewise, a disappointed client might turn into a bad one if you ignore their concerns or delay communicating effectively about an issue. I could go on for a minute about how escalating simple matters creates the very thing we all try to avoid, but I digress.

Review the problems you face with your clientele and figure out where things went wrong. And if the problem originated on your end, decide how you’ll improve your business practices and communication in the future.

Conclusion

Difficult clients drain resources, time, money, and mental health. They can also become liabilities for your business. How you deal with them boils down to the severity of the situation. Lead with honest and open communication and set realistic expectations.

Barring that, stay calm, be professional, and offer the best and fastest solution.

Clients are people too. Each of us has different needs and personalities. Learning to deal with a broad spectrum of attributes will strengthen you as a business owner.

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