How To Lose a $28,000 Contract by Doing Stupid Things That Can Easily Be Avoided
By: Ruth King
Business owner sells a $28,000 contract to a customer. The owner’s employees are supposed to perform the work as described in the plan. It is renewal time and the business owner has not received the renewal agreement.
The business owner calls to find out why the renewal contract has not been received. The client tells him all of the things that were done improperly, wrong, and that they were totally dissatisfied. That was why the client looked elsewhere and found another company to do their work.
The business owner said, “Why didn’t you tell us?” (HE REALLY ASKED THIS QUESTION!!!!)
The former client said, “It is your responsibility to find out whether we were happy. You didn’t and we went elsewhere.” Ouch!!!!
The company lost that contract and the additional revenue associated with it. What’s even worse, replacing a $28,000 contract instantly is next to impossible.
Moral of the story:
You have to communicate with your customers. A phone call should be made periodically as the work is performed and the sales person should review the entire year with the customer 60 to 90 days before the renewal date.
You absolutely MUST contact your clients to make sure they are happy. This is the fastest way to continuous renewal, more revenue, and loyal clients.
The best way is using the old fashioned telephone…yes, the phone. Customers can ignore emails, texts, and other forms of communications. They might be unhappy and you’d never know it…unless they are REALLY unhappy.
Why give a customer a reason to try someone else? Call the customer. Make sure that your company is providing the products they invested in. Ask for the results of using your products. You’ll discover what they like about them. What they don’t like about them…and maybe you’ll get a great testimonial!
Ruth King is known globally as the “Profitability Master,” and is a a thought leader in entrepreneurship and business. Her books have been recognized as among the greatest in numerous industries. Learn more about all her business activities here.
