When Do You Lose Clients—and What Does That Tell You?

Losing clients is as inevitable as a British summer washout. It happens to everyone. When I was running Shandwick Consultants—then one of the UK’s largest financial PR firms—we decided to conduct an analysis of when, exactly, we lost clients.

We excluded cases beyond our control, such as clients selling themselves to other firms (our record for shortest-lived client was a biotech company we retained for a grand total of ten days before they agreed to an unsolicited takeover). And, of course, we excluded those we had politely—or less politely—parted ways with ourselves.

The result? The losses fell neatly into two categories: within 12 months and after seven years.

The latter is easy to explain. The seven-year itch is not just a marital affliction. Clients, like spouses, occasionally want something fresher, shinier, and more exciting. Sometimes, they simply grow tired of your face.

The within-12-month losses were less comfortable. These, frankly, were cases of overpromising and underdelivering. It’s a pattern I have since observed in many agencies—so at least we were in good company.

But this is more than just an interesting data point. There are three key lessons to take away:

1. Don’t Chase Everything in Sight

Winning business outside your sweet spot—where you cannot deliver real value—is an invitation to future disaster. Winning work you cannot service properly is not a victory; it’s simply deferred humiliation.

2. If You Win It, Service It Properly

This is the most obvious lesson, but also the most ignored. If you take on a client, you must deliver exceptionally well. Occasional overpromising is inevitable, but systemic overpromising—or worse, plain incompetence—is fatal.

You may hear from senior colleagues that all is well, that accounts are being run flawlessly, and that client losses are just part of the cycle. Do not take this at face value. If I were you, I’d dig deeper. There is always the possibility that the real problem is not the junior staff but the senior ones assuring you that everything is fine.

3. Other Firms Are Just as Fallible as Yours

If your well-run, competent firm can lose clients within 12 months, so can your competitors.

So, if you lose out on a pitch—even to a large, polished, seemingly invincible competitor—do not assume the game is over. Stay in touch with the client. Remind them, discreetly, that you are still interested in them. Should they find themselves regretting their new choice, they may not have the energy for another exhaustive selection process. Instead, they might opt for an informal chat with you.

And as we all know, informal chats are simply pitches in disguise.