Answer
Consider how parents encourage a child to eat. They may use a great deal of praise and encouragement. This is not done out of selfishness but out of affection and concern for the child's welfare.
Similarly, when giving spiritual "medicine" to people, we may sometimes praise them to encourage them.
This is a different category altogether.
When dealing with sincere devotees within the devotional community, there should be honesty and straightforwardness rather than flattery.
However, when trying to engage people in Krishna consciousness, some encouragement and appreciation may be useful. Before a person can hear spiritual instructions, they often need to feel appreciated and comfortable.
First make them feel good, and then encourage them to serve Krishna. If they feel appreciated, they become more receptive to spiritual engagement.
Therefore, there is a place for such encouragement in preaching.
However, this principle should not be misused within the devotee community, especially in dealings with authorities. Artificial praise and flattery are generally unnecessary and inappropriate there.
Experienced devotees can easily recognize when someone is flattering them.
In this connection, Srila Prabhupada once said:
"Be a lion in the chase and a lamb at home."
In other words, within the ashram and devotee community, one should be humble and gentle like a lamb. Outside, while preaching and engaging people in Krishna consciousness, one should be bold and dynamic like a lion.