Handling customers canceling services is an opportunity to improve sales and business operations. As soon as a manager sees the numbers on cancellations, or hears about them action should be taken to 1) limit cancellations, 2) turn cancellations into marketing feedback, 3) improve business operations and sales and 4) rebuild client relationships. In order to do this well, it is important to know how to handle customers canceling services. A few techniques to handle customers who cancel services and improve sales are outlined as follows with details about how to implement them and why they work.
Fill the sales vacuum
A sales vacuum is created when the customer's service cancellation is simply honored with indifference. To fill that sales vacuum, ask the customer the reason for cancellation and provide a courteous response tailored to their feedback. For example, if the customer is unhappy with service, ask if they would like a different in house service technician, discount, free month of service etc. This fills the sales vacuum with ideas the customer may appreciate more and possibly even allow them to rethink their decision.
Obtain valuable feedback
Feedback from customers that cancel services is worth money because the same feedback would cost money to attain independently through a marketing research study. Asking a couple of pointed questions when receiving a cancellation request can help the sales person or company build an information database with which to develop new sales and operational strategies. Feedback can identify possible problems with a service, and/or useful information about the clients that cancel.
Offer an alternative
If an appealing enough alternative is offered to a client who is canceling a service, they may reconsider. Even if it means less money for the company, less money and one less cancellation is better than no money and one less client especially if there are sales and client retention benchmarks to be met. Alternatives depend on the specific reasons for the cancellation, the type of business product or service and the client's interests.
Feedback from customers that cancel services is worth money because the same feedback would cost money to attain independently through a marketing research study. Asking a couple of pointed questions when receiving a cancellation request can help the sales person or company build an information database with which to develop new sales and operational strategies. Feedback can identify possible problems with a service, and/or useful information about the clients that cancel.
Offer an alternative
If an appealing enough alternative is offered to a client who is canceling a service, they may reconsider. Even if it means less money for the company, less money and one less cancellation is better than no money and one less client especially if there are sales and client retention benchmarks to be met. Alternatives depend on the specific reasons for the cancellation, the type of business product or service and the client's interests.
Salvage brand equity
The cancellation of service accounts is the last chance a salesperson or company may have to interact with a customer directly. Staying professional and fulfilling the customer's requests, cross selling, and implementation of cancellation programs specifically designed for service cancellations can all be helpful in salvaging brand equity. One unhappy former client could tell all their friends about "that terrible service they got from a salesperson at XYZ company", or how "that service plan is so overpriced", etc. If the customer cancels feeling good about the cancellation with the salesperson or company that's better for the service than a bad felling.
Design a cancellation process
A cancellation process implements the above techniques systematically and usefully. For example, a cancellation process may consist of a series of steps. Each of those steps follows a methodology designed to optimize the experience for the salesperson, client and company for the purposes of client retention, marketing, customer satisfaction and improving sales and operations.
1. Receive cancellation request either by phone, email, fax, mail or in person
2. Initiate and engage customer in conversation
3. Obtain marketing feedback: Inquire about reason for cancellation
4. Fill sales vacuum: Offer response based on the reason(s)
5. Salvage brand equity: Leave customer feeling good
Re-build customer lifetime value
A customer that has canceled may reconsider a service in the future if it has improved, a problem has been solved or the reason for the cancellation has been resolved. This is why it is important to leave the customer feeling happy after the cancellation i.e. it may open the door to further opportunity in the future such as reinstating the former customer's service agreement.
After a short time has passed, contact the client one more time with a new offer, hand signed letter from the company's management or salesperson, and an appreciation for the opportunity to provide service in the past. This allows the sales person, company and client one more chance to achieve customer satisfaction, re-build customer lifetime value and improve company marketing asset value.
1. Receive cancellation request either by phone, email, fax, mail or in person
2. Initiate and engage customer in conversation
3. Obtain marketing feedback: Inquire about reason for cancellation
4. Fill sales vacuum: Offer response based on the reason(s)
5. Salvage brand equity: Leave customer feeling good
Re-build customer lifetime value
A customer that has canceled may reconsider a service in the future if it has improved, a problem has been solved or the reason for the cancellation has been resolved. This is why it is important to leave the customer feeling happy after the cancellation i.e. it may open the door to further opportunity in the future such as reinstating the former customer's service agreement.
After a short time has passed, contact the client one more time with a new offer, hand signed letter from the company's management or salesperson, and an appreciation for the opportunity to provide service in the past. This allows the sales person, company and client one more chance to achieve customer satisfaction, re-build customer lifetime value and improve company marketing asset value.
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