Despite every effort, many companies are destined to lose a client or customer at some point. Sometimes they leave because they’re unhappy, or maybe another vendor makes an offer that suits their needs better at that moment. Other times, clients leave without giving a clear reason.
While losing a client for any reason is disappointing, making an effort to understand why they left helps businesses learn, grow, and hopefully prevent future departures.
Nobody likes rejection, but separating business decisions from emotions following a client’s departure can be the first step toward building a productive conversation that benefits both sides. You never know, by handling the situation with grace and professionalism, you might just keep them in the fold.
These strategies for responding to a departing client can make a big difference to internal processes and client services.
1. Have a live conversation to address your client’s concerns
A client’s decision to leave can be serious, but not necessarily final if you respond appropriately. The first step is to talk to the client and listen carefully to the reasons behind the decision.
The best way to get a true understanding of the situation is a live conversation, as emails and text messages are too prone to misinterpretation. This helps you have a nuanced conversation and ask difficult questions to understand the client’s reasoning. It might even be an opportunity to rectify the situation.
While some problems – like budget constraints – may be beyond your control, it’s important to take accountability for any mistakes you’ve made and set a clear plan to resolve issues.
Even if your client does decide to leave, a live conversation can offer a chance to identify areas of improvement and implement changes that will make it less likely that other clients leave.
2. Say thank you – and mean it
If your client still wishes to leave after a live conversation, you can be respectful of their decision. Despite any mixed emotions you may feel in the wake of losing a client, make sure they know how much you’ve appreciated the opportunity to serve them.
Although they may be moving on, they’ve supported your business and gratitude goes a long way in leaving a lasting impression. It also helps preserve a strong professional reputation. You never know who former clients may speak to in the future, so try to make sure their final interactions with you (at least for now) are positive.
BY SEIZING THE OPPORTUNITY TO UNDERSTAND WHY THE CLIENT LEFT, BUSINESSES HAVE A CHANCE TO LEARN, GROW, AND HOPEFULLY PREVENT FUTURE DEPARTURES.
3. Keep your door open
While it can be difficult to hear a client has decided to move on, remember the old adage: “The only constant in life is change.” While clients may leave, they might also return one day.
For example, budget constraints may force them to leave, before a cash infusion from an investor inspires them to capitalise on new resources. Such situations are why it’s so important to let departing clients know you’d love an opportunity to work with them again. Handling the situation with grace and gratitude can be essential to maintaining an ongoing relationship.
4. Ask to stay in touch
After losing a client, consider making a note to check in at both the 30-day and 90-day mark. It’s important to be proactive, as customers who regret their decision to leave might be reluctant to admit it and reach out themselves.
Former clients may have an immediate problem with their new service provider. Contacting them after 30 days provides an opportunity to let them know you’re available to help immediately.
Some companies may take more time to settle in with new providers. After 90 days, most are typically past the transition phase, making it a great time to see how they’re doing. If nothing else, you’ve kept the lines of communication open. It’s about letting them know you’re there versus being pushy.
5. Focus on finding new customers
While losing a client is tough, it opens up more time to focus on new business opportunities. One potential strategy is to calculate how much time your team spent serving the client and dedicating that to bringing in three new clients. This helps turn a negative situation into something positive that keeps the business’s focus on the future.
You might even find you land new business that’s even more profitable than what you’ve lost. The key is quickly turning your focus to growth, rather than just replacing a lost client. Focusing on growth can help reinvigorate your company. As a bonus, you won’t waste energy lamenting the loss.
6. Debrief your team and retool your approach
Sometimes businesses lose clients because they don’t meet expectations. When that’s the case, it can be helpful to set aside your frustrations, figure out where you fell short, and ensure it doesn’t happen again.
Consider taking the lessons learned from your live conversation with a departing client and using them as an educational moment for your entire organisation. Sit down with your team and take a good, hard look at how you can improve so you can retain and better serve existing clients.
Try to develop a clear plan to address your company’s shortcomings. By rethinking your approach, you may be able to come out stronger, better, and more profitable.
7. Be grateful for the opportunities
This last step may have more to do with your mindset than your bottom line. There are always positives to consider when clients put their faith, trust and capital into your business, especially if you’ve served them for a long time.
It’s important to be grateful for the opportunities you've had – even if they come to an end – as this is far healthier than resenting a client’s departure. Focusing on the positives and looking forward to experiencing more great opportunities in the future can help reset and quickly bounce back.
Key takeaways
Business relationships don't always last forever. They can grow and evolve, just as our personal relationships do. When clients leave, remain true to your authentic self, express gratitude, end things on a positive note, and embrace the opportunity to continually deliver excellent service to the clients you have. This commitment to excellence helps you better serve your existing customers and bring in new ones in the future.