To avoid auto-renewal of contract, customer needs to cancel 60 days prior, but customer cancels only 30 days prior. How do I handle this situation?

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JASON LEMKIN

Let it go and Move On.

  • At a practical level, it is incredibly difficult to enforce the contract, even with a collections firm. Collection firms don’t try very hard, and the threats they make on these type of contracts don’t scare too many companies.
  • At a business level, you screwed up. You lost the customer. You didn’t provide enough value to renew. You failed this customer.
  • And if there is any value left in this now ex-customers, it’s goodwill. They might come back later. They might still recommend you to a friend. If you take action, they won’t do either. Maybe, they still like you, it’s just the product didn’t really serve enough of their needs. Maybe they will bring you into their next company. Once you go to threats and/or collections, that’s gone forever.

Move on.

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Published on March 24, 2017
  • Tom Lipscomb

    Agree 100% with Jason. Better to spend your time on how you circle back with them in the future to leverage what goodwill exists from you professionally handling this situation 🙂

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