As explained in this post, there are times when it is a good thing to say no to a customer. But knowing what circumstances it’s best to say no is the easy part. The question is, HOW to say no to a customer? No doubt, this can be a challenge. So here are strategies and examples to help handle this.
First, Acknowledgement
Everyone wants to be heard. No one likes to be gaslighted. So the first step in how to say no to customers is to acknowledge them. For example, say:
“Thank you for that suggestion.”
“I understand that is important to you.”
“I can see why you’d ask that.”
Then, Be Direct
Get the point, quickly. Saying no is not easy and so it may be tempting to create a long and winding introduction to it. Don’t waste your time, or theirs. The longer you talk before saying no, the more likely your customer will be annoyed.
Use clear language. And always be polite. For example:
“I’m sorry, but that is not possible at the moment.”
“At this time, we are not able to accommodate that request.”
“I apologize for the inconvenience but we don’t have space in our schedule for that.”
Explain Why
Giving an explanation is not always possible. Or appropriate. And after all, No is a complete sentence. But an explanation can help your customer understand your position. For example, if it’s related to an outside factor like insurance requirements, professional regulations, or technology limitations, then it can take the sting out of the no. And there should be a rationale for saying no which is tied to legitimate operational concerns. Especially around health and safety to protect your staff.
Here are some specific strategies to use:
“We need to follow the rules set by our insurance policy, which protects both of us.”
“Health and Safety regulations prevent us from… ”
“Our policies are in place to provide consistency for all our customers.”
Finally, Offer an Alternative
One key strategy for how to say no to customers is to offer an alternative. Offer your customers a choice, which empowers them.
Essentially, the psychology is that the customer just experienced their request being denied. Rather than let them sit in that unpleasant feeling, focus their attention on by giving them options. Shifting their mind to making a decision that will benefit them will lift them out of the “I was just told no” state. Here are some examples of offering an alternative to your customers:
“Though we can’t do <their request>, we would be happy to <XYZ> or <ABC>. Which do you prefer?”
While we are unable to do <their request>, I suggest you consider <XYZ>.
Though we can’t accommodate <their request> I recommend that you contact <referral partner> who can help you with <XYZ>.”
More Tips for How to Say No to a Customer
Stay positive
Smile, even if you are on the phone and they can’t see you. Any negative vibes may veer things into a combative or tense exchange. Avoid that by staying positive in your language, your tone of voice, your body language, and your facial expressions. searching for solutions.
Empathize
Your customer may be very disappointed to hear no. Validate those feelings and empathetic language. Say things like “I understand this is frustrating and I’m sorry that we can’t accommodate your request.”
Be Firm
You have valid reasons for saying no. So be firm with that decision. Don’t let a customer decide how you run your business. Which means don’t engage in any negotiation. For example, a customer may try to coerce you by saying “I have a few friends who I can refer to you, if you can just do this one thing for me.” The best response to that is a firm “We would appreciate your referrals but our policies are in place for a reason.”
