When it comes to client renegotiations, two common challenges often arise: a mismatch between service price expectations and the handling of a client’s extensive demands.

How can we manage these hurdles and arrive at a mutually agreeable outcome? Strategic questioning can turn these challenges into opportunities to create value and deepen client relationships.

Understanding the Price Gap

When a client hesitates at the price, it often signals unmet expectations or a misalignment in perceived value. Addressing this begins with understanding what drives their perception of value.

  • Evaluate Value Perception: Start by asking, “What do you see as value for money?”. This question opens a dialogue that goes beyond cost, allowing you to gain insights into which aspects of your service the client values most.
  • Refine the Offer: Follow up with, “Are there items in our service proposal that you feel are not needed?”. This can help streamline your offering, aligning it more closely with the client’s needs, potentially reducing costs and enhancing perceived value.

Prioritising Client Demands

Clients may sometimes present long lists of demands. While you may not be able to meet all of them, you can strategically address the most impactful ones.

  • Identify Critical Demands: Ask, “How would you prioritise these items?”. This encourages the client to focus on what is truly important, allowing you to deliver value where it matters most.
  • Maximise Value Delivery: Use the question, “Which items will provide the most value?”, to guide both parties in understanding which elements of your service will most effectively meet the client’s strategic goals.

Beyond Price – Exploring Other Key Drivers

Focusing solely on price can obscure other essential factors that might offer the client significant advantages.

  • Uncover Broader Needs: Initiate the conversation with, “What are the other key drivers for your decision?”. This helps reveal other considerations, such as service reliability, innovation, or market reputation, which may be as crucial as price.
  • Identifying Hidden Needs: Ask, “Are there any challenges or needs that we haven’t discussed yet that might impact your decision?”. This question helps uncover any underlying issues or needs that haven’t been addressed, allowing for a more comprehensive solution.
  • Assessing Risk and Concerns: Pose the question, “What concerns do you have about moving forward, and how can we address them?”. By directly addressing concerns, this question allows you to mitigate risks and build trust.
  • Quantify Impact: To highlight the broader business impact, ask, “What would be the business impact if XYZ could save you XX% over the year?”. This not only shifts the focus from cost to return on investment but also helps the client visualise the long-term benefits of choosing your service.

Effective account management is less about sales and more about building relationships through meaningful dialogue. High-gain questions are potent tools for opening these conversations and directing them towards creating mutual value. They prompt clients to evaluate, analyse, speculate, and express emotions, deepening engagement and understanding.

However, it’s important to recognise that sometimes, you might not be the right fit for a client’s demands. In these cases, it’s often best to acknowledge this openly and, if necessary, let the client go. Understanding when to walk away can preserve your resources and maintain your business’s integrity – a topic I’ll explore further in an upcoming blog.

 

Are you looking to strengthen your business’s client relationships and drive sustained profitability while streamlining internal processes? Contact Sharon for a complimentary 30-minute discovery call.