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February 21, 2002


 

New Concept of "The Customer is King"

By the CEO of American Hoffman PR Company: Lou·Hoffman

Business relationships today seem to revolve around one short but dangerous phrase: "The customer is king". I know a clothes shop that, in the spirit of customer satisfaction, refunded a woman who claimed to have bought a car tyre. Companies can't go far enough to please - which explains the boom of customer resource management software.

But running a business - especially in the creative services world - shouldn't start and end with the customer. In fact, a maniacal desire to satisfy the customer or client can cause long-term damage to a creative services agency. Because some clients are curmudgeons who produce frustration, stress, ambivalence, anger or worse among an agency's most valuable asset - its staff.

In running an IT-focused PR agency, I came to a sobering realisation a few years ago. We can do everything to attract the right people. Team-oriented culture. Cool surroundings. Never-ending opportunity to learn. Good compensation and career path. Free biscuits. Yet, one lousy client can render it all meaningless, pushing an employee to look elsewhere.

The interaction with the client plays just as important a role in determining the enjoyment of creative services professionals - and ultimately the work that comes from them - as the agency environment.

That's why we should consider - there's a pragmatic side of business called revenue; hence, the word "consider" - ending relationships with clients who day in and day out make our people's lives miserable.

This doesn't mean we expect clients to roll over. They should be tough and demand great work. And it's OK for the agency to jump through hoops now and again. Goes with the territory. Even a swear word (or two) from the client is not the end of the world. It shows passion.

And obviously it's important that the agency takes a shot at improving a dodgy client relationship. Sometimes it's the chemistry, and a change to the account team solves the problem. At other times - like hitting a bully on the nose - a brutally honest talk can change the relationship for the better. By explaining to the client what's needed so you can be successful, the dynamics can sometimes change.

But there also comes a time when enough is enough. Discerning when a client has crossed the line into truly destructive behaviour is both an emotional and intellectual exercise. It's not easy.

When in doubt, take your cue from your people. If they're continually feeling like a human punch bag it's likely the benefits of the revenue don't outweigh the damage to your product. Because without your people there is no product.

About Lou·Hoffman

Hoffman launched The Hoffman Agency in December 1987, after 14 years in journalism and public relations. He assists clients in corporate positioning, message development, crisis management, and mergers and acquisitions. Hoffman is an accomplished speaker and writer on the topics of high-tech PR and global business and has addressed national and international audiences for PRSA and the PR Professionals of Singapore. Hoffman also writes a regular column in MC Magazine and has been featured and quoted frequently in other publications, including BusinessWeek, The Wall Street Journal and a number of PR trade magazines.

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