It’s OK to Lose Clients
By Siân Morgan-Owen
Disclaimer: This post may contain affiliate links for which I may make a small commission at no extra cost to you, if you make a purchase. I only recommend products I love.
Customer Churn is Inevitable
Last month, I experienced the loss of two clients, and honestly, if this had happened a year or two ago, I would have been in a complete panic and spiralling, feeling like it was all my fault. I would have been filled with thoughts like, “OMG, I must not be meeting their expectations” or “I must not be delivering the results they wanted.” But over time, I’ve come to accept that customer churn is just a natural part of running a business.
It’s OK to lose clients…
I’ve found that there are various reasons why clients might choose to leave me. Sometimes it’s simply a matter of budget constraints, and other times, they realise that even with outsourcing, they still need to be actively involved in their business to succeed. It can be tough for them, especially if their online presence is just a secondary branch of their business and not their whole focus.
I’ve learned that it’s crucial to understand that not every client will be the right fit for my services. Just like how I have my ideal client profiles, clients also have their specific needs and preferences. And that’s perfectly fine. Instead of dwelling on these losses, I focus my efforts on attracting and retaining clients who genuinely value what I have to offer and are a great match for my services.
I also remind myself that my business is continually evolving, just like my clients’ businesses. Sometimes, our paths diverge, and that’s okay. It creates room for growth and expansion, allowing me to explore new opportunities.
I would have also previously panic about the financial implications of losing clients. Now it just causes me a little squeaky moment…coz let’s be honest we’re not just in this gig for the shits and giggles. However, I’ve come to realise that each time I lose a client, someone else often comes along pretty quickly, and because of my continuous improved messaging they’re often more aligned. Embracing the ebb and flow of client relationships has taught me that growth and alignment go hand in hand.
You maybe interest to know (if not, then feel free to skip passed) that straight after losing the two clients, I did sign a new client whose package more than covers the two clients I lost, and we seem very aligned…the universe moves in a marvellous way.
So, whilst as a service-based business it’s good to focus on customer retention and maintaining long term relationships, losing customers is a natural phenomenon that affects almost every business, regardless of its size or industry. Understanding and accepting this reality is crucial for maintaining a healthy perspective on customer retention and business growth.
Learning Opportunities from Customer Churn
Rather than viewing lost clients as failures, embrace them as valuable learning opportunities. Analyse the reasons behind your customer departure and use this feedback to identify areas where your business can improve. Sometimes, clients leave due to circumstances beyond your control or because they’ve outgrown your offerings. By gaining insights from lost clients, you can fine-tune your products, services, and customer experience to better cater to your target audience’s needs.
Understandably, not all feedback is actionable. Over the years, some of my clients have parted ways for various reasons. When I say parted ways, sometimes there’s a need for you to be the instigator of the parting. Here are a few interesting examples of why some of me and previous clients have parted company:
- You’re not “I” enough. Luckily, I was a MBTI Practitioner in a previous life so knew they meant I was not introverted enough.
- I thought you would run all of my business for me so I can go out with my friends and away for long weekends. FYI this client was on a £250 per month package.
- You live too far away. I’m an ONLINE business manager! In their defence they did want someone they could see face to face and co-work with.
- I know I only signed up to a basic social media package, but I didn’t realise you’d charge me for all the additional hours of ad hoc works you’ve done in my business. I assumed you would use the opportunity to learn from me how to make sales and take your business to the next level.
Hey, we’re all different, right.
Focusing on Ideal Client Profiles
Hand’s up who’s been guilty of “Well its money isn’t it. You don’t turn business away!”
Well, as I’ve pointed out above not all clients are the right fit for your business and perfectly align with your brand values or offerings. However, this should not be cause for distress; instead, it presents an opportunity for growth. Rather than clinging to clients whose needs may not be fully met by your services, focus your efforts on attracting and retaining those who genuinely resonate with what you have to offer. Concentrating on your ideal client profiles allows you to build more meaningful and sustainable relationships, leading to more smiley times and improved retention rates.
Although it can be difficult to let go of clients, especially when you’ve invested time and effort in building those relationships, it’s essential to embrace the idea that some clients may seek alternative solutions or possess unique requirements that you just can’t offer. Focus your resources towards attracting and nurturing clients who truly appreciate the value you bring to the table. By prioritising clients who align with your brand values and understand the benefits of your services, you create a stronger foundation for your business.
Remember, it’s ok to lose clients because it’s about finding the right clients who will value and cherish the unique contributions you offer.
Room for Growth and Expansion
As your business evolves and matures, it is crucial to embrace the natural progression that comes with growth. Just as your business may outgrow certain client packages/offerings due to shifts in focus or expansion into new markets, clients, too, may outgrow the scope of your offerings as their needs change or their businesses evolve. Recognising this and the evolving nature of the business landscape allows you to navigate these changes with a forward-looking and positive mindset.
Continuously assessing and refining your business strategy becomes even more critical as you progress in your entrepreneurial journey. It ensures that your business remains agile, adaptable, and responsive to the changing demands of your target audience. By staying attuned to your clients’ evolving needs and market trends, you can proactively identify potential shifts in your ideal client profiles and adjust your approach accordingly.
While parting ways with certain clients may seem challenging, it can be a strategic decision that creates space for new opportunities and paves the way for expansion into more lucrative markets or areas where your expertise is better aligned. As your business evolves, it is vital to stay open to transformation and embrace change as an integral part of your growth journey. Doing so positions your business for continued success and adaptability in a constantly evolving market, setting the stage for sustained growth and continued excellence in serving your ideal clients.
Strengthen Your Value Proposition
When clients choose to leave, it’s essential to take a close look at the factors that contributed to their decision. Analysing this feedback allows you to identify areas for improvement. Highlighting your strengths and exceptional qualities not only benefits current clients but also attracts new ones who resonate with your brand and what it stands for. Emphasising your unique selling points helps distinguish your business from competitors, making it easier to attract prospects who align with your values and appreciate the value you provide. As new clients come on board, providing them with exceptional experiences and staying true to your value proposition becomes vital for building lasting relationships.
Encouraging Feedback and Open Communication
Maintain open lines of communication with your clients, both current and former. Encourage honest feedback from clients who have chosen to leave, as it can provide valuable insights into areas for improvement. Demonstrating that you value their opinions, even after they’ve left, can leave a positive impression and may even lead to reconsideration in the future. One of the clients who left also come back a couple of weeks later.
- Create Feedback Channels: Establish accessible feedback channels, such as surveys, follow-up emails, or feedback forms, to make it convenient for clients to share their thoughts. By offering various ways for clients to provide feedback, you can cater to their preferences and encourage more candid responses.
- Listen Actively: When clients do provide feedback, actively listen and show appreciation for their input. Avoid becoming defensive or dismissive, as this could deter them from sharing valuable insights. Instead, approach feedback with an open mind, acknowledging their perspectives and thanking them for taking the time to share their thoughts.
- Respond Thoughtfully: Respond to client feedback thoughtfully and promptly. Whether the feedback is positive or highlights areas for improvement, addressing it with professionalism and a willingness to make changes demonstrates your commitment to enhancing your services and meeting client needs.
Clients who feel heard and valued may reconsider their decision to leave, leading to potential opportunities for re-engagement. Additionally, by showing genuine interest in their experiences, you are more likely to foster a positive reputation as a business that cares about its clients’ satisfaction.
Remember that encouraging feedback and maintaining open communication should be an ongoing effort. Continuously seek opportunities to improve your feedback process, adapt to client preferences, and actively use feedback to drive positive changes in your business. By prioritising client input, you create an environment of trust and collaboration that strengthens client relationships and positions your business for long-term success.
Final Thoughts!
While the primary objective of customer retention is to build long-term relationships with clients, it’s important to remember that it’s OK to lose clients and it’s a natural aspect of business. Embrace customer churn as an opportunity for growth and learning, focusing on your ideal client profiles and continuously reinforcing your value proposition. Recognise that change is a part of business evolution and be open to adapt and refine your strategies accordingly. By understanding that it’s okay to lose clients, you can maintain a healthy perspective on customer retention and position your business for sustained growth and success in the long run.