We wanted to remodel our new house and sought the help of a renowned Interior Designing Company and got the estimates.
They gave us three estimates. It was reasonably a big size interior work. So they gave estimates accordingly. We chose the middle one and paid 1/3 as advance.
Due to the pandemic, the work got delayed in-between and was moving in a slow phase. In the meantime, we have decided to add some more additions to the current one. The trouble started then. The designer from the architect team, the site coordinator, and the materials coordinator started giving their opinions. When we correlated those opinions, we have started feeling a lot of gaps in our requirements.
We chose an inbuilt dishwasher and they were mentioning a standalone. We chose Philips lighting. They were discussing Hafele. We chose a double bowl sink from Hafele. They were mentioning another brand. We chose a wooden design gypsum ceiling. They were discussing a pure wooden one. We chose a quartz countertop and they were discussing granite. So on and so forth.
We called the sales guy who closed our deal and showed our unhappiness. The answer he gave was shocking to us. He said this is all happening because we have changed our requirement from the initial one that we agreed and signed. We asked in what way it can be a problem when we are always asking for a revised estimate, where our current estimate will be more than 35% from the original one.
He told me he is responsible only up to the first estimate and contract execution and thereafter only the execution team is responsible.
I have immediately correlated this to the Software services side. This is exactly the main hidden reason for most of the bitter relationship between a company and a client. Nobody is ready to understand and accommodate the client here. In my case, it is additional revenue to the company. But even if the client is ready to cut short certain features, a company should be ready to accommodate it. The difference in the amount can be considered as the marketing cost to bring on new clients if we keep this client happy.
A sales target cannot be the revenue alone. It must be both the Revenue and the New Clients. But the revenue must be divided into two. Revenue from the existing client and revenue from the new client. If we notice the trend, the revenue from the existing clients will be always more than the revenue from the new clients in a given year.
Whatever is said and done, today’s new client is our existing client of tomorrow. So retaining an existing client will bring in more revenue in the current year than the new client. And this is a cycle. A lastest study is showing that we need to put in 60% more efforts to bring new business than getting additional business from our existing clients.
So teach your team about the importance of keeping our clients happy. Here I said team and not ‘sales team’ because it is always a collective effort to keep the existing client happy.