03/ 20/ 2006
by Tamara E. Holmes
Losing a large client can be scary. Most businesses, however, will face this scenario at one time or another. The key to getting through such a loss is keeping it in perspective and learning the lessons that the experience can teach.
When news hits that a valued client is taking his business elsewhere, your first inclination may be to panic, particularly if that client provides a significant portion of your business’ income. Remember, however, that change is a characteristic of life, and one of the key ingredients to a successful business is the ability to quickly adapt.
The first thing you should do if a client threatens to leave is find out if there is any way you can change his or her mind. Perhaps the client wasn't satisfied with the way a task was performed, or maybe the client cannot afford the services anymore. You may reach an agreement to lower the price, if the client is big enough to justify such a move. Or you may be able to convince that client to stay, if a different employee performed a valued service. If there is nothing you can do to change a client’s mind, you must cut your losses and move on.
By talking to clients about why they are leaving, you not only get the chance to try to woo them back, but you also get to discover whether there is something about your business that you can improve. Unless clients are taking business away for purely personal reasons, the insight you glean into why they are leaving may help you come up with strategies that will keep others from moving on as well. At the very least, take time to send former clients a questionnaire about they stopped using your services. Such information is key to determining which strategies are working for your business and which ones are not.
Depending upon how high profile the client is, you may also have to do damage control. If other clients get wind of the fact that your business is waning, they may consider jumping ship, too. If your business caters to clients who travel in the same circles, it may be worth reaching out to them to assure them that your business is sound.
One of the greatest lessons that come from losing a large client is the realization that you must never stop marketing. It’s easy to get complacent if you have a few clients that spend a lot of money with your business. When one of those clients takes his or her business away, however, you're left with a huge gap to fill.
The best scenario is to have a diverse mixture of clients so you'll be more suited to handling the loss of one. You'll still feel a pinch when a client takes his or her business away, but if you have many other clients to fall back on, you'll be better able to recover.
It’s also helpful to have an ongoing marketing plan so you're not scrambling to come up with one when you have to replace a client. You may have to step up that plan or spend more time marketing in order to replace the lost income, but it’s better to ramp up your marketing routine than to have to start from scratch.
Every small-business owner wants valued clients to stick around forever, but in reality, clients and customers will come and go. By preparing for that reality, you can make sure that a temporary setback doesn't turn into a crisis situation for your small business.
