Three Benefits Of Saying 'No' To Potential Customers

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Imagine saying "no" to a potential customer, someone who has expressed interest in what you have to offerand has money to spend. Sounds crazy, doesn't it? But it can be an essential part of a successful service-based business.

Saying "no" to a paying opportunity may sound like a privilege that few can afford. But in reality, I've found it can end up delivering more opportunities, steadier clients and strong long-term revenue streams for those offering their services, from business consultants to freelance writers and beyond. I know this because I've been there, and if your brand is service-based, you probably have been too.

That's not to say I'm immune. I became a leader in the field of data-driven digital marketing by learning how to identify opportunities that will help me grow, not slow me down. But a checkbook has distracted me from red flags before. Red flags like increasing the scope of the project after a budget was decided, demanding communication outside normal office hours or arguing over the decided deadline.

Every business offers a product, service or both to its customers. And, in order to grow, a business tends to focus on quantity: The more potential customers or clients they can get through the “doors," the better — a model that often works well for companies with products to sell. However, I've found service-oriented brands often find more success when focusing instead on long-term relationships and building customer loyalty.

Focus On Quality Over Quantity In Service Industries

The service industry is huge, which makes competing based on price instead of value an intuitive approach. But again, we're not selling products — undercutting the competition can devalue your service, which can result in you committing yourself to work for a rate you've already decided can't pay the bills. 

To make matters worse, trying to attract as many short-term clients as possible can also naturally increase the chances of working with clients who become unreasonable once the project is underway. In this case, you're already on the hook for the work you've already put in — and there might even be a star rating or review on the line.

So you make exceptions to the initial agreement. Or you charge less than you can afford. Or you spend a lot of time going after a sea of potential clients instead of focusing on the net you're casting. All the while, you're still expected to do your best-quality work.

We've all been there.

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Shutterstock

Imagine saying "no" to a potential customer, someone who has expressed interest in what you have to offerand has money to spend. Sounds crazy, doesn't it? But it can be an essential part of a successful service-based business.

Saying "no" to a paying opportunity may sound like a privilege that few can afford. But in reality, I've found it can end up delivering more opportunities, steadier clients and strong long-term revenue streams for those offering their services, from business consultants to freelance writers and beyond. I know this because I've been there, and if your brand is service-based, you probably have been too.

That's not to say I'm immune. I became a leader in the field of data-driven digital marketing by learning how to identify opportunities that will help me grow, not slow me down. But a checkbook has distracted me from red flags before. Red flags like increasing the scope of the project after a budget was decided, demanding communication outside normal office hours or arguing over the decided deadline.

Every business offers a product, service or both to its customers. And, in order to grow, a business tends to focus on quantity: The more potential customers or clients they can get through the “doors," the better — a model that often works well for companies with products to sell. However, I've found service-oriented brands often find more success when focusing instead on long-term relationships and building customer loyalty.

Focus On Quality Over Quantity In Service Industries

The service industry is huge, which makes competing based on price instead of value an intuitive approach. But again, we're not selling products — undercutting the competition can devalue your service, which can result in you committing yourself to work for a rate you've already decided can't pay the bills. 

To make matters worse, trying to attract as many short-term clients as possible can also naturally increase the chances of working with clients who become unreasonable once the project is underway. In this case, you're already on the hook for the work you've already put in — and there might even be a star rating or review on the line.

So you make exceptions to the initial agreement. Or you charge less than you can afford. Or you spend a lot of time going after a sea of potential clients instead of focusing on the net you're casting. All the while, you're still expected to do your best-quality work.

We've all been there.

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https://www.forbes.com/sites/forbeslacouncil/2018/04/26/three-benefits-of-saying-no-to-potential-customers/