Sales and customers
What to say when a client threatens to leave for a competitor
When a client says they are leaving, it is rarely only about price. Do not get defensive and do not offer a discount straight away: ask what happened and what would need to change for them to stay. Sometimes the honest answer is also a calm goodbye that leaves the door open.
How to handle this conversation
Thank them for telling you
“Thank you for telling me directly instead of just ending the contract. I want to understand what happened.” It lowers the tension from the first sentence.
Look for the reason under the price
“Price is one thing. What else made you start looking at other suppliers?” Service, delays or lack of contact usually come up.
Do not promise the impossible
Instead of “we will do whatever it takes”, say: “Within a week I can change your account manager and set up weekly updates. Does that address the problem?”
Ask for time to make a proposal
“Give me three days. I will come back with a concrete proposal, and the decision stays with you.” You buy time, and the client keeps control.
A client says they are leaving for a competitor
- Difficulty
- Hard
- Duration
- 10-15 minutes
The situation
One of your bigger clients calls to say a competitor has offered them a price twenty percent lower and they plan to switch from next quarter. In recent months they had two serious delays, and nobody talked to them about it. You can offer changes, but you cannot match that price.
Who you talk to
Owner of the client company
Disappointed and blunt. Opens with price, brings up the delays, says “nobody cared about us” and watches to see whether you start making excuses.
The counterpart also has private goals and information that are never shown upfront. You discover them only through the conversation, the same way you would in real life.
What makes it hard
- The client presents the decision as almost final.
- Your first instinct is to explain the delays and defend the company.
- The competitor’s price is out of your reach.
Your goals
- Find out what besides price made the client look elsewhere
- Offer concrete changes that address the problem
- Agree a date for your proposal and the next conversation
What the report looks at
- Whether you reacted calmly, without defending or explaining
- Whether you asked about reasons other than price
- Whether your proposals were realistic and concrete
- Whether the call ended with a set date for the next step
Similar conversations
- I am meeting the client’s CEOHow to talk to a client’s leadership so they listen to the end
- I am telling a client my prices are going upHow to tell a client you are raising your prices without losing them
- I am calling a prospect who does not know meHow to open a cold call so the prospect keeps listening