How to Tell a Customer “No” Without Losing Them Forever

"There is something about the idea of having to tell a customer, or anyone for the matter, "no" that seems to unnerve even the bravest among us. However, it isn"t such a difficult task if it"s handled in a courteous and professional manner.

Experts say there are typically three reasons why you tell a customer "no."

1. If saying "yes" would compromise your quality standards
2. If saying "yes" would violate ethics or the law.
3. When it isn"t a win-win situation.

The problem sometimes happens when the culture of the organization is such that they believe it"s better to tell the customer "yes" rather than risk saying "no" and offending the customer. The problem can then become that even though a commitment has been made, the organization cannot deliver as promised.

If you find yourself in a position where you have to tell a customer "no," understand why you are saying it and help the customer understand as well.

Know it is Okay to Say "No"

Feeling free to say "no" to customers is generally influenced by a company culture that embraces honesty and creative problem solving rather than phony claims of "the customer is always right." However, you need to understand what is acceptable and unacceptable behavior based on your company's policies and guidelines, as well as any external influences such as state or federal laws.

That being said, when dealing with customers who make requests that you are unable to fill for whatever reason, if you tell them in an upfront and courteous manner, they may be upset at first, but you are more likely to retain their business and their respect. However, if you make a commitment and then don't deliver as promised, they will be even more disappointed in you and your organization when they find out.

Reject the Request not the Requester

It is important to keep in mind that when you tell a customer "no" you are not personally rebuffing them, you are saying "no" to their request. It may be due to time constraints, legal ramifications, product availability, or any other reason; just be sure that the customer understands it is not related to them as an individual.

Focus on the quality of the relationship rather than on the idea that you have just told them "no" - perhaps for the first time. Ensure that you are not rejecting them, just their request, and explain why it is in their best interest that you do so. If you can't meet their deadline, you are saying "no" so that they don't miss their ship date. If you can't offer them a product, you are saying "no" because it's not right for their needs. Whatever they want that you can't or won't deliver, make sure they understand why and then...

Offer an Alternative

You've had to tell your customer that you can't meet their requested deadline. An alternative might be to offer a deadline you can meet or perhaps you can refer them to an alternative source. Or maybe you don't have the product they are looking for, but it will be in next week or you have a better option available. Whatever the reason for telling the customer "no," be sure you can offer them an alternative.

Keep in mind that rather than just offering the solution you think they might want to hear, you need to listen and understand their needs. What are their objectives? How can you help them meet their objectives? Assisting the customer to find a solution rather than turning them down cold is a sure-fire way to retain your customer's goodwill.

So next time you have to tell a customer "no," be sure you tell them why and what you can offer them instead. They will see you as responsible and professional.