How to Survive Losing a Big Client: 12 Smart Strategies

How to Survive Losing a Big Client: 12 Smart Strategies

It happens to almost every business and it’s probably happened to yours: A big, important client decides to leave your firm for a new supplier.

A customer’s decision to change vendors often is driven by outside factors unrelated to your performance. But even when it’s not your fault, it hurts, economically and emotionally.

In the 26 years I’ve owned a marketing consulting and creative services agency in Cleveland, Ohio, we’ve had several clients move on for various reasons.

It happened to us again last month: A beloved, important client was acquired by a larger organization. The acquirer’s marketing agency took over the account and we had to say goodbye.

The loss of a major client can be a huge blow to your business. But there are ways you can survive – and even thrive – following a customer defection. Here’s how to do it strategically.

Losing a Big Client: 12 Business & Marketing Survival Strategies

In the early years of our business, we became a marketing services provider for a FORTUNE® 100 technology company.

This was the client of our dreams. The more we did for them, the more they asked us to do. Soon, they represented 60% of our revenue. Then, the powers that be decided ALL marketing for the company would be done by three large agencies. Smaller firms like ours were out, just like that.

It took a full year to replace the lost income, but this painful episode taught us the importance of being prepared for a client departure and how to use the experience strategically to rebuild the business:

1. Plan for potential losses. Be realistic: Any client can walk out the door any time. Don’t let your firm become too dependent on one major client. Build exit terms into your contracts to soften the blow, such as requiring clients to give you 60-90 days’ notice of contract termination.
2. Make a classy exit. Be gracious in all your interactions with the client and their new supplier. Deliver everything the client can fairly expect as the relationship winds down and do it with a smile. Wish them all the best in the future. The high road is always the right choice.
3. Find out why the client is leaving. A client departure is a crucial learning opportunity. Ask the client to be frank about why they’re moving on. It may be straightforward, but there could be hidden reasons: Your firm isn’t keeping up with their needs; your quality or service standards have slipped; you’ve fallen behind on industry trends or technology. Use this information to strengthen your business going forward.
4. Evaluate “fit” issues. When you work with a client every day, it can be hard to keep the relationship in perspective. But if you look at it objectively, there may have been changes in their business or yours over time that made the fit no longer right. Use insights from this evaluation to select new business prospects that would better fit your business today.
5. Ensure the satisfaction of your other clients. If you haven’t recently talked with other customers about their satisfaction, now’s the time to do it, so you can discover and correct any issues or concerns before you face another defection.
6. Keep your content coming. Move the client’s contacts into a prospecting queue in your CRM system for future business. Continue to share valuable original content, your e-newsletter, and invitations to visit your booth at trade shows or attend your seminars. This is one of the best ways to use content marketing in a B2B marketing strategy.
7. Develop your talking points about the loss. You’ll have to tell staff about a client loss; your colleagues, competitors, and your other customers may also hear the news. Muddled messaging makes things worse, internally and externally. Don’t let people draw their own conclusions: Tell the story the way you want it told, remembering again to take the high road. Equip your team to answer questions. Be straightforward, brief, and most important, confident. You’re already looking to the future.
8. Review your marketing strategy. Evaluate your branding, positioning, messaging, tactics, and targeting. Are you still delivering the right messages to the right prospects about your business? Or do you need to rethink who you’re targeting and how you’re selling your value? Consider a marketing audit to take a fresh, objective look at your approach to the marketplace.
9. Boost your market presence. You now may have capacity to fill, so this is an ideal opportunity to raise your market profile. Consider ramping up your visibility and lead generation with a marketing campaign, speaking engagements, high-profile content, and more emphasis on search engine optimization.
10. Assess your competition. Study the firm that took the business from you. What do they have that you don’t? Are they marketing better? Are they offering capabilities or services you don’t have that the market wants? Understanding their winning formula can help you refocus.
11. Ask the client about a testimonial or case study. If you’re parting on good terms and you’ve done a good job for the client, consider asking for a brief testimonial about the quality of your work. If it’s appropriate, ask if they’d be willing to be featured on your website as a successful case study.
12. Keep the door open. Assuming you’d like to do business with this customer in the future, be sure they know it. Stay in touch personally with your best contacts. Former clients often have reengaged us for marketing strategy and creative services when they’ve moved on to new jobs.

A Final Strategy Tip: Protect Your Legal Rights

Client departures can get ugly fast if there are legal issues, like who owns the intellectual property you’ve created on the client’s behalf.

If you run a marketing agency or any type of company that creates original intellectual property for customers, know and protect your legal rights. Spell out intellectual property ownership in every client contract and every agreement you have with freelancers or independent subcontractors who help you deliver your services. For more guidance on this, visit legalandcreative.com.