How to Handle a Client who Wants to Cancel their Work with You

Life will throw curveballs at even the best-laid plans. You’ve taken pains to set up solid business plans and systems, carefully consider customer satisfaction, and sustain your motivation and vision. You are increasingly able to bring your gifts to the world and are even seeing some stirrings of success when it happens: one of your clients wants to cancel their work with you.

If you’ve not experienced this predicament yet, it is only a matter of time before it will find you. Every business owner is destined to experience this client eventually. Because the way in which an owner responds can make or break their business, it is smart to prepare for the difficulties of this situation ahead of time.  

Tips for Responding to Client Cancellations

1. Remain calm and objective

As counter-intuitive as it may seem, do not take the client’s desire to cancel personally. More often than not, your client is not upset with you. They may be experiencing any number of life circumstances (illness, business difficulties, a family death, etc.). It is possible that they really did (or even still do) want your services even while they are trying to back out. Life happens to us all. Even if the reason for their change of heart is because they realized you are not the right fit for them, this does not necessarily mean that you have failed or done something wrong.

Even if it is revealed that you did something to make the business interaction unpleasant, you will not help yourself or your business by reacting emotionally. Before responding to the client, take time for yourself. Allow yourself to feel whatever emotions arise, receive support from your loved ones, and develop a plan for responding. Remember the 5x5 rule: if the situation will not significantly matter 5 years from now, it is not worth your stress. Taking a pause to reflect and assess the situation will allow you to gain perspective.

2. Try to fix the problem

Once you have dealt with your initial reaction, talk to the client to better learn what is going on. Actively LISTEN to them instead of approaching the conversation with predetermined judgments. By keeping an open mind, you will be able to identify whether the issue is on your client's end or if perhaps you did overlook something in your business agreement.

Once you know the realities of the situation, you can consider whether or not you can make an adjustment. If you set unclear expectations or realize that the delivered product wasn’t according to specifications, ask the client what you can do to make things right. Even if the breach is not your fault, there may be aspects of the transaction that you can tweak to keep your client on board. For instance, if your client has realized that the membership cost is too high for their monthly payments, you may be able to create a new payment plan that will work for both of you.

In all of your dealings, establish professional credibility by treating the client with the utmost respect and by conducting yourself with integrity. Not only are these actions morally right, but they also increase the likelihood that the client will speak well of you in the future. Regardless of whether or not you reach an agreeable solution, your client will remember how you made them feel during the discussion.

3. Consider agreeing to your client’s request

While it may not be possible for every type of service, you may want to consider agreeing to your client’s request to cancel even if you have done nothing to cause the request. Such an act may seem radical (especially if the client was under contract), but some businesses have thrived by making such allowances. In his article “4 Things You Must Do When a Client Decides to Cancel,” content marketer Ron Dawson explores how Amazon, Macy’s, and other companies that readily allow returns benefit in the long run. While the inflow of returns is not always convenient, it gives customers a pleasing experience that results in more sales than would otherwise occur.

Even if you are not able to completely nullify your working agreement, you may be able to reimburse the client for any goods or services that they have not yet received.

4. Stick to your guns

That said, there will be times when you are not physically able to go back on your agreement (such as when goods have already been consumed) or when doing so might jeopardize the framework of your business in other ways. In these cases, stick to your guns and hold to your original agreement. Ideally, point the client back to the portion of the signed contract or terms agreement that expresses their consent to abide by your cancellation guidelines.

Even as you are enforcing “no,” keep communication with your client compassionate and respectful. Extend sympathy for their situation where appropriate, but not in an overly-apologetic manner (it is they who are breaking the contract, not you). Regardless of your client’s response, maintain your professionalism. Do not become emotional, argue with the client, or call the client names even if the client reacts negatively towards you.

It is perfectly possible to be assertive while remaining understanding, yet many people struggle to have difficult conversations. If you find yourself in this situation often, you may want to consider investing in some books or training courses that bolster boundary-setting and conversational skills.

5. Protect yourself before problems happen

A solid contract with a clear cancellation policy will prevent unpleasantness from the outset. A contract defines a working relationship and sets expectations that keep both sides from getting hurt. When developing your contract, research your industry and talk to other professionals to determine what is appropriate. Make clear provisions for, the following categories:

• What situations are permissible causes for cancellations?
• Do you require a safety deposit? If so, how much and under what circumstances will the client get it back?
• How long are any existing return or back-out windows? Will you send reminders of the deadlines, or will your clients need to remember the information for themselves?
• How/when should your clients contact you in case of dissatisfaction or concern?
• What kinds of adjustments are you willing/not willing to make?

Go over your policies with your client early in your business relationship to make sure that everyone understands exactly what is being agreed to and what will happen if the contract is breached. Remember, while there will be exceptions, it is best to set fair policies that can remain consistent for all clients in most cases.

It is also important to consider purchasing legal insurance for your business. While you and your client can likely handle most issues between the two of you, you never know when you’ll encounter a particularly sticky situation. Having the necessary insurance at the ready will protect your business while giving you peace of mind.

6. Have a post-cancellation game plan

If you do decide to move forward with a cancellation or an adjustment, having the right protocols in place will ensure seamless movement going forward. Time and headaches will be saved by making provisions for the following:

• How will you document/enforce the cancellation or agreed-upon adjustment(s)?
• Do you need to notify any of your employees of the changes? If so, how will you do that and how will you train them in advance on what you’d like them to do when a cancellation occurs?
• What changes will the cancelation or adjustment(s) make to your existing work schedule, flow, or obligations to other clients?
• Do any past records or inventories need updating to reflect the new changes?

A final point for your post-cancellation checklist might be to “look for the lesson” in the situation and to document it for future reference. As difficult as cancellation situations can be, they can also provide invaluable information about loopholes in your business structure or practices that may set you up for increased success later on. If nothing else, they can teach you more about your target audience’s psychologies which will allow you to serve your clientele better in the future.

What If You Don’t Have a Contract

Conducting business without contracts (even if that contract is in the form of an invoice or purchase agreement) is risky. Without a legal framework, there may not be enough evidence of your business agreement to mitigate disputes. While you can always try to come up with a solution according to the tips above, be prepared that, as the business owner, it is you who are most likely to eat the losses if an issue arises.

Before You Cry, Consider….

As devastating as it may be to lose a client, remember that you are choosing to work with your clients just as much as they are choosing you. Many issues fall outside of personal control, but others occur due to difficult personalities. Before you lament the loss of your client too deeply, consider whether or not they were the type of person you really want to be working for. If the client who canceled on you was a difficult client, it may be that their cancellation will decrease your stress and give you more time to focus on the clients who appreciate you.

You started your business with zero clients; while it is never fun to lose a client, it is important to keep your focus strong and look forward to the other clients that are sure to come your way. By keeping your cool in these situations, you may also get yourself a future referral.

WRITTEN BY: KATIE BARNETT