How to Manage Difficult Agency Clients

How to Deal with Difficult Clients in Marketing and Advertising

When I work with agency owners on strategies to handle difficult clients, I often think, “This could all have been avoided if it didn’t start in the first place.” What I mean by that is if agencies followed a few important steps in client acquisition and onboarding, they might have fewer “difficult” clients to deal with.

The Importance of Client Qualification

The first thing worth mentioning is that this step may be more difficult for younger agencies that are scrambling for any income they can get. So earmark this for year two or three when it’s time to be more strategic about onboarding the right clients. I encourage all agencies to have a qualification/disqualification process before signing on with new clients. This should be part of the agency's Ideal Client Profile (ICP) and, within reason, should not be wavered from.

During the discovery process, both the agency and the potential client should understand how each other works. Look for red flags, just like in dating: how they communicate, their responsiveness, and whether they “get you” as an agency and a culture. If there are red flags in the dating period, I can guarantee marriage will be hell.

Effective Onboarding Practices

The second thing that can really help avoid difficult clients is how they are onboarded. Many agencies lack a formal onboarding or post-mortem process when, in reality, these processes are quite simple and carry massive benefits. A proper onboarding process shows your client that you have your act together and that this isn’t your first rodeo (even if it is, act as if it’s not).

Onboarding is a great time to review everything from how they will provide creative feedback to the task management system you’ll use, who their direct point of contact is, response time expectations, and the implications of not following these guidelines. Agencies with strong account and project management procedures lead with this as an initial step in starting to work with new clients or initiating new projects. 

The key takeaway here is to train them on how to be good clients. Like a bad puppy, they don’t know they’re being bad; you have to teach them what you need and how you need it delivered in order to be successful.

Identifying Client Challenges

Now let’s dive deeper into dealing with those clients who still manage to give you headaches despite your best efforts. Here are some common challenges that difficult clients can bring to an agency:

1. The Scope Creeper: This client constantly asks for "just one more thing" without adjusting the budget or timeline. Before you know it, you're doing twice the work for half the pay.

Solution: Implement a clear change order process. Every time they ask for something outside the original scope, respond with, "Sure, we'd be happy to add that. Let me draft up a quick change order with the additional cost and timeline impact." This makes them aware that changes have consequences. Also, consider building in a buffer for small changes in your initial contract, like "up to X hours of additional work." Anything beyond that triggers the change order process.

2. The Midnight Mailer: They send emails at 11 PM and expect responses by 7 AM. Boundaries? What boundaries?

Solution: Set clear communication expectations during onboarding. Establish "office hours" for your team and stick to them. Use an email autoresponder after hours that says something like, "Thanks for your message. Our team is available from 9 AM to 6 PM, Monday through Friday. We'll respond to your inquiry during our next business day." Then, actually wait until business hours to respond. If it's truly urgent, provide an emergency contact method, but make it clear what constitutes an emergency. Also, be sure to establish your team's standard response time.

3. The Indecisive Indie: Can't make up their mind and changes direction more often than a weather vane in a tornado.

Solution: Create a structured decision-making process. Present options with clear pros and cons, and set firm deadlines for decisions. Use a project management tool to track decisions and changes. Implement a "cooling off" period for major decisions - if they want to change direction, they have to stick with it for at least X days before making another change. This encourages more thoughtful decision-making.

4. The Micromanager: Wants to be CC'd on every email, involved in every decision, and basically do your job for you.

​​Solution: Overwhelm them with information (in a good way). Set up automated daily or weekly reports that give them a high-level overview of project progress. Schedule regular check-ins where you present a detailed status update. By proactively providing information, you can often satisfy their need for control without them feeling the need to be involved in every little thing. Also, gently remind them that they hired you for your expertise and that trust is crucial for the best results.

5. The Payment Procrastinator: Always has an excuse for why the invoice can't be paid... yet.

Solution: Implement a strict payment policy in your contract. Consider requiring a deposit upfront, and tie project milestones to payments. Use accounting software that sends automatic reminders for overdue invoices. For chronic late payers, you might introduce a late fee or offer a small discount for early payment. In extreme cases, be prepared to pause work until payment is received. Remember, you're running a business, not a charity.

Remember, the key to all these solutions is clear communication and consistent enforcement. Set expectations early, document everything, and don't be afraid to have those tough conversations when needed. Your sanity (and your profit margins) will thank you!

Addressing Client Issues

So you've identified the problem child. Now what? Here’s where your people skills come into play:

1. Communication is Key: Set up a face-to-face meeting (or video call if necessary). Sometimes issues arise simply because of misunderstandings.
   
   
2. Listen First, Talk Second: Let them vent; sometimes clients just need to feel heard. You might even learn something useful.
   
   
3. Revisit the Contract: Gently remind them of the agreed-upon terms. "Hey, remember when we both signed this? Good times, right?"
   
   
4. Offer Solutions, Not Complaints: Come prepared with actionable steps to address the issues. Show them you're not just whining; you're problem-solving.
   
   
5. Document Everything: Keep a paper trail of all communications and agreements.

Protecting Your Team

Here's the thing, folks: nobody deserves to be treated poorly, period. Your team members are your most valuable asset, and it's crucial that leadership has their backs when clients start throwing their weight around. If a client is consistently disrespectful or abusive, it's time for the higher-ups to step in and have a come-to-Jesus talk with the client.

As an agency owner or leader, you have a responsibility to lay down cover for your team and protect them from abuse. This might mean taking an account from a more junior person and managing it yourself. It could also mean making the tough choice to fire a client to protect your team's well-being and morale. Remember, a toxic client relationship can poison your entire agency culture if left unchecked.

When Things Escalate

If you've tried all of the above and you're still banging your head against the wall, it's time to escalate:

1. Internal Escalation: Bring in account managers, project leads, and senior leadership for fresh perspectives.
   
   
2. Client-Side Escalation: If you're dealing with a mid-level manager, consider reaching out to their higher-ups; sometimes it's just one person causing the trouble.
   
   
3. The Come-to-Jesus Meeting: Lay all cards on the table about how their behavior is impacting work and relationships—be honest but firm.
   
   
4. Renegotiate or Reassess: If the client is valuable but problematic, consider renegotiating terms or service levels that address pain points.

The Last Resort: Firing a Client

If you've tried everything—been patient, and professional—and still find yourself miserable, it might be time to consider firing the client. This decision shouldn't be made lightly; involve your agency's leadership and conduct a thorough cost-benefit analysis:

• Is this client damaging team morale?
• Are they costing you more in time and stress than they're worth financially?
• Could resources dedicated to this troublesome client be better used elsewhere?

If you decide to part ways, do it professionally—provide ample notice and offer to transition their work smoothly without burning bridges.

In Conclusion

Dealing with difficult clients is an art form requiring patience, strategy, and sometimes even a stiff drink (after hours). By implementing strong qualification and onboarding processes, addressing issues head-on, and knowing when to cut your losses, you can navigate even the choppiest client waters.

For every difficult client out there, there's a dream client waiting to appreciate your hard work and expertise. Keep your standards high, communication clear, and sense of humor intact—you've got this!

And remember, at the end of the day, your team's well-being is paramount. Don't be afraid to be the shield that protects them from client abuse. Sometimes, being a great leader means knowing when to say "enough is enough" and showing a problem client the door. Your team will thank you, and in the long run, your agency will be stronger for it.