Revisit Lost Customers to Find New Business
September 2005

Time to dig out that “Lost Customers” folder! With the right approach, those lost customers could still hold lucrative business for you.

Look for it. It’s probably buried in the back of your client management files, but it’s there. The one file you tend to avoid. The one labeled “Lost Clients” that makes you shake your head in disgust just thinking about it. Every business has its “Lost Clients” file. It serves as a reminder of when you over-promised and failed to deliver, or just dropped the ball when it mattered most for that customer. Maybe it was less than stellar customer service or a billing error that caused the client to find another go-to resource. Perhaps they just took their business elsewhere without bothering to offer an explanation.

Regardless of the reasons, the result is the same: You aren't getting their business.

Believe it or not, there’s hope in the “Lost Client” file. Set aside your pain—and pride—and knock on their doors once more. But be smart about it. Here are three rules to keep in mind as you call on these prospects, humbly:

Rule No. 1 – Price Concessions Aren’t an Option: It’s a sure bet that a main reason why some of these prospects left was a competitor’s rock-bottom pricing. Although it may be tempting, don’t capitulate to market pressure and do some price-slashing of your own. Lower prices may have made a customer leave, but it’s no guarantee they will bring them back. Instead, focus on how your company can help each prospect win more customers. There’s more longevity in this strategy than just resorting to a 20% (or greater) discount.

Rule No.2 – Be Creative, Be Honest: What do you have to lose by calling on lost clients? You’re not getting their business now, so you may as well go for it. Take some chances when trying to restart a client relationship. Use creativity. For example, consider sending lost clients a "We've improved" letter that outlines the enhancements you’ve made since you last did business with that customer. Being honest and self-deprecating could be the ice-breaker you need to get another shot at their business.

Rule No. 3 – Learn from Lost Clients: Once you've won back a few customers you never thought you would, don't stop there. Apply Rules No. 1 and 2 to prospects who’ve ignored your marketing attempts. And to keep current clients out of the “Lost Clients” file, ask them, “How’s our service?” But be prepared for honest feedback — some of which you might not like. Then use the feedback to improve your relationship with all your clients.

What Grow Sales, Inc. Can Do For You
At Grow Sales, Inc., we have helped our clients develop strategies to cull business from their “Lost Customers” file – and avoid adding more names to it – since 1996. With our sales support, full-service marketing and web design capabilities at your side, we’ll help ensure that you take advantage of every sales opportunity.

Back to E-Tips