How to Respond to a Cancellation Request

Responding to a cancellation request is critical for maintaining a positive client relationship, preserving revenue, and upholding your professional reputation. A cancellation request often reflects the client’s underlying challenges, not necessarily dissatisfaction with your service. By addressing their concerns, you can uncover their needs, provide tailored solutions, and demonstrate the value of continued partnership.

Cancellation Checklist

Mindset Before Engaging with the Client

• Understand the value of every contract, no matter the size. Small deals contribute significantly to overall revenue and page rates.
• Recognize that cancellation requests often stem from the client’s business struggles, not your performance.
• Approach the situation consultatively. Remind yourself and the client that advertising can help grow their business when they need clients most.
• Stay professional and confident. Holding clients to contracts they willingly entered is fair and ethical.

Steps to Handle a Cancellation Request

1. Respond to the Request:

Use the "Cancellation" Email Template in ARC to reply to the client. Request a time to meet and discuss their concerns.

I’m sorry to hear that you are wanting to end our partnership. Your advertising agreement is ultimately with my franchising company, City Lifestyle, and any early termination must be processed through the proper channels. Let’s see how I can help you. I have availability to meet _____ or _____. What works best for you? Your ads will continue to run as scheduled until we discuss this further and come to a resolution. 

2. Consult Your Leadership:
   1. Call your Business Coach, Territory Region Partner or Sales Director for advice. Discuss the request and create a plan tailored to the client’s situation.
3. Engage with the Client:
   1. Schedule a meeting or call to understand why they want to cancel.
   2. Remind them of their contractual agreement and the value City Lifestyle continues to provide (e.g., editorial features, event promotions).
4. Challenge the "It's Not Working" Argument:
   1. Ask insightful questions:
      1. How has their business been performing?
      2. Have they noticed increases in web traffic, social media following, or new clients from target areas?
   2. Shift the focus to the tangible benefits their advertising has provided.
   3. Ask how they are tracking to determine they are not getting a return on their investment.
5. Propose Creative Solutions:
   1. Cash Flow Issues:
      1. Offer to skip payments for 1 month and spread the balance over the remaining months.
   2. Seasonal Slowdown:
      1. Reduce ad size during slow months for 2-3 months.
   3. Cancellation Fee Balance:
      1. Ad a last resort option, suggest running ads until the cancellation fee is met, giving them time to reconsider staying long-term.
   4. Referral Option:
      1. Waive the cancellation fee if they find another business to take their spot.
   5. Restructure Agreement:
      1. Lower the monthly rate and resign them to a smaller ad size for a longer term.
6. If Retention Fails:
   1. Let them know the contract is with City Lifestyle, not you directly.
   2. Request corporate to send the cancellation payoff amount.
   3. Use ARC to generate and send the cancellation email (note this email generates from City Lifestyle Email Domain, not you personally, but should be sent by you, the publisher).
7. Final Steps:
   1. If the client replies to the cancellation email, continue negotiating. Avoid proactively reaching out after the cancellation fee email is sent unless they respond.

Creative Retention Solutions Recap

• Offer short-term payment relief.
• Adjust ad size or design during slower months.
• Run ads to cover the cancellation fee instead of immediate termination.
• Allow them to find a replacement advertiser to fill their spot.
• Resign them to a longer-term agreement with reduced monthly rates.