how to defend against canceled orders

10 Ways to Defend Against Cancellations and LossesCancellations stink.As much as we would like to think that cancellations may be a normal part of doing business, and as much as we would like to assuage our hurt feelings or disappointment with thoughts that we 'did the best we could' or 'somebody else was cheaper', the ultimate responsibility for cancellations fall squarely on the back of the salesperson. We must never surrender to the thought that a cancellation is okay (unless we are the ones canceling the relationship.) The only way to save a cancellation is to help a client see why it doesn't make sense to do so. Your reasoning must be connected to their needs, not yours.Here are someways you can defend yourself against cancellations:1. Take personal responsibility. Only by taking responsibility do we learn what to do more of (or less of) in the future to strengthen our relationships with customers. A major part of most salespeople's job is to control the experience of our customers. When we truly control that experience, they don't cancel. Customers cancel because they believe the value is better elsewhere. Period. It is harsh reality, but if the value of your relationship or your product's strengths as it correlates to their needs outweighed a lower price, your client wouldn't cancel for price. You may not want to hear that, but you need to.2. Take it personally. Explain to the customer that we take cancellations personally. Tell them you feel that you have failed them, because if you had done a good job, they wouldn't want to cancel. Offer a different salesperson. Ask them if they will give you a chance to carefully review the account and respond. Ask them "If you were in my shoes, what would you have done differently to better protect this account?" Look, you are about to lose the account. Appeal to them a little bit and listen to what they say. Maybe it's not dead.3. Go see them immediately. Sit eye to eye and have them tell you their reasoning again. Be prepared to listen. Do not make excuses. Just listen. Load your guns for a presentation within a few days to save the business. Listen for things you could be doing differently.4. Take your manager on the call. It is important that your client knows IMMEDIATELY how important their business is to the company.5. Remind them that you are the one who knows their issues and needs. You know the people. You know what they want. You've spent years making sure everything is functioning correctly. You know the complexities of their account. Acknowledging the investment they've made creates value and suggests a switch will have FAR greater lifetime costs than what initially appear to be savings.6. Consider the use of a "stay" incentive designed to save the business and keep them committed. This is a dangerous tactic because your client may feel you didn't offer your best deal. That may be true, but at this point, you may not have much to lose because the business is probably gone. If you cannot retain it, then at least make it hard for a competitor to take it. There's a time and a place for everything. Perhaps it makes sense to offer a considerable incentive. Don't give up easily.7. Most of the time, even if a cancellation is not because of price, they will tell you it is, because it is easier than confronting bad service or admitting they don't see any valuable difference in their experience with you. Explain that lower prices tend to cause either the quality or the service to decline. They won't acknowledge it, even if they are concerned. Raise the issue though, and tell them you don't want to lose their business over a few bucks. Ask for a second chance and discuss quality and service.8. Discuss scope changes. If they want a better price, then what can you do differently that may produce a lower price?9. Re-sell those things about your product or service that really set you apart from competitors. If your award-winning work is special, then help them begin to experience that gap in satisfaction they will feel when they leave. You must create a loss in their mind and you must know their needs well enough to lead them (gently) to the negative consequences they will feel when they cancel.10. Depending on your circumstances, it may make sense to sell the local community involvement. Has that national company supported the charities that happen to be important to that manager who is canceling? Does the national company make contributions to the school where that manager's child goes and is involved in sports or theater? Your company is a responsible, local, corporate citizen. Is that important and can you leverage it?Various surveys indicate that customers leave for these primary reasons:1% Die
9% Find a competitor to supply service cheaper
9% Outgrow the need for a supplier's services
14% Have unresolved complaints that made them mad
67% A competitor made them feel more special.Clearly, the most compelling reason most customers cancel is because they are not getting enough attention or because they are mad! What can you do today to reach out to your important clients? In today's business climate, operational excellence cannot be a goal, it is a given. If you can't get it right, someone else will. Everybody says they are customer-centric. The time to really prove it is when your customer has a complaint.Lastly, if you are truly going to lose, walk away with grace and class. You never know when this customer may resurface elsewhere or where your paths will cross. Your class and grace defines how the customer is likely to remember your company. You want it to be a fond memory, so you can confidently re-take their business again in the future.

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