How to Politely Say No to Customers: 11 Tips and Steps

Business owners are used to agreeing with customers and working as hard as they can to meet and satisfy customers’ needs. The customer is always right, right? However, sometimes, a customer will ask you for something your business can’t provide.

When this happens, you need to know how to say no to customers in a positive way. Doing so will let you maintain a healthy, strong relationship with your customers. The following tips on how to say no to customers will help you conduct a straightforward conversation that allows you say no without hurting the customer-business relationship.

When to Say No to Customers

Before exploring how to say no to a client, it helps to understand when you may need to do so. There are various situations when, as a manager or business owner, you may need to say no to a client. Sometimes customers have expectations that you simply can’t fill.

The following are some situations when you will find yourself saying no to customers.

When the Customer Request Goes Against Your Company Policy

Every company should have policies in place to protect them against certain customer requests. Remember that others will want the same treatment if you go out of your way for a single client. Following set policies prevents this problem.

So, if a request violates company policy, use one of the nice ways to say no in this guide. But if it is within your policy and will improve the customer experience, use your best judgment and consider following through.

When the Customer’s Desires Are Not Realistic

One of the most common situations in which you’ll need to know how to say no to customers is if the client has unrealistic expectations. For example, imagine you sell software and just made major upgrades. A client asks you to revert to the previous version because they don’t like the current one. You simply can’t return the functionality where it was before.

A farther-reaching example will be if a client asks for a massive discount on a product or service. This wouldn’t be practical, as it would affect your bottom line and maybe even turn the product into a loss.

When the Customer Asks for Something That’s Not Included in What They Acquired

Asking for something not included in the initial purchase is a specific type of unrealistic request. No company can continually give freebies or upgrades without hurting its bottom line. You set your prices for a reason.

Of course, there may be situations where you will want to say yes if a customer asks for something extra. However, you should have clear policies as to when you can make such concessions. Use your knowledge of the best ways to say no if an exception doesn’t apply.

When the Customer Wants to Go Beyond Customer-Business Boundaries

Any time the customer makes a request that goes beyond customer-business boundaries, you should strongly consider saying no. An example could be asking for your personal number or inviting you to a friendly outing instead of a business meeting. 

Depending on your industry, the lines between business and free time may blur, such as in industries with client dinners as part of the client journey. So, using your best judgment when saying no to customers is the right move.

When a Customer Becomes Rude, Hostile, or Abusive

Your customer-business boundaries should also ensure a safe, non-threatening workplace. If the customer becomes hostile, threatening, or uses explicit language, use your skills of how to say no to a client. You may even want to remove angry customers as clients entirely from your business premises.

How to Say No to a Client: 11 Tips

It can incredibly challenging to come up with nice ways to say no. After all, you don’t want to negatively affect your relationship with the client. But it is possible to say no without hurting your relationship. In fact, knowing how to say no to customers in a positive way is a crucial part of customer management and customer relationships.

The following tips will help you come up with the perfect way to say no, and if you need more help, look at our how to say no to customers in a positive way template below.

1. Thank Them When Responding

Set the tone of your “no” by starting with a thank you. Specifically, thank customers for their business and the trust they put in your company. Making a genuine statement of gratitude will soften the blow of the refusal. Try to avoid seeming scripted, even if you are using a template.

2. Be Honest

Always be honest when talking to customers, whether saying you will share an idea with the right team, you have plans to implement the service in the future, or how an alternative will work. It’s always better to say “no” than to disappoint or mislead customers. Not being honest can permanently ruin your customer-business relationship and hurt your overall reputation.

3. Reframe the “No” and Use Positive Language

With some skill, you can reframe the “no” from bad news to something good using positive language. For instance, a customer wants to download chat conversations from your software. Instead of starting with “You can’t do that, but…” you can reframe it into “For security reasons, we don’t store chat transcripts on our company servers.”

You can also use this reframing when offering an alternative. For example, you could use phrasing such as, “I would be happy to offer you …”.

4. Make Sure to Listen to the Customer

Before you deliver a “no,” make sure you understand the customer’s request. Listen to everything the customer has to say and ask clarifying questions if necessary.

As you listen, show empathy, gather feedback, and focus on the customer experience. You may discover a great alternative to offer, improving customer retention. At the very least, you will deliver excellent customer service. 

5. Offer Alternatives

The best ways to say no include alternatives. Explain the alternative and how it could meet the client’s needs. This goes hand-in-hand with telling the truth and giving a thorough explanation of why you have to say “no.”

If your company can’t offer an alternative that fits the client’s needs, consider mentioning an external company that can help them. As long as you trust the customer, this can be a good way to maintain a relationship with the customer and show that you have their best interests at heart.

6. Explain Things Carefully

Always explain your response and company policies carefully. Don’t rely on implications or things left unsaid. A “no” is much easier to accept if customers understand the reasons for your refusal.

This is also the time to explain what happens next. For example, if the customer requests a service you don’t currently provide, you can mention that you will pass the feedback to the appropriate team. Customers will appreciate that their request isn’t just being ignored.

7. Be Empathetic

Just like thanking the customer, showing empathy will help soften the blow. You can use phrases such as “I understand” or “I see why.” This lets the customer know that you aren’t upset with them for asking, but their request is simply something you cannot do.

8. Follow Up with the Customer

If you recommend that the customer see a competitor, be sure to follow up. Following up will prevent you from losing their business and just switching to the competitor. At the very least, it will encourage the customer you to keep in mind as a potential option in the future or when making recommendations. You can do this via email, social media, or any other channel to prevent churn.

9. Explain the Reasons Behind the “No”

Honesty is an important part of how to say no to customers. So, be honest and explain why you have to say “no.” Your customer support team will be best prepared to refuse requests when needed and explain why if they understand the reasons for your policy.

10. Ask for Feedback

Gathering customer feedback will help you understand why your customer needed the product or service that you couldn’t provide. This may help you find a new potential service for your business to offer. At the very least, asking for feedback will show customers you care about their feedback.

11. Promise to Reach Out in the Future When It Is Possible to Fulfill the Request

If you use that feedback to make changes and eventually offer the product or service initially requested, let the customer know. Just send a friendly email mentioning that, thanks to their feedback, you now offer new features that fit their needs. Let them know you are happy to help and encourage them to reach out to your support reps with questions.

How to Say No to Customers in a Positive Way: 3 Templates and Examples

The following “how to say no to customers in a positive way” template options will show you how to put these tips into action. Most of these templates for customer interactions are easily adjustable for various situations and industries.

Example 1: A Customer Requesting a Free Trial Extension

• Customer request: A customer calls requesting an extension on their free product trial – which has already been extended. They claim they didn’t have enough time to get to know the product and need another one.
• Response template: “Good day, [Name]! We agree that you should understand the product before you sign up for our service. We only offer two free trials in a row but would be happy to schedule a demonstration to show you the product’s features in more detail.”

Example 2: A Customer Requesting Something That Goes Against Company Policy

• Customer request: A customer makes a request that goes against your company policy. You need to cushion the “no,” explain your reasons, and offer alternative solutions.
• Response template: “We would love to help you, but due to [explanation], our company policies prevent us from providing your request. However, we have several solutions that may fit your needs…”.

Example 3: A Customer Requests a Service You Don’t Currently Offer

• Customer request: A customer requests a service that your company doesn’t currently offer and hasn’t yet considered offering. You want to collect feedback to see if this is a good future direction.
• Response template: “While we don’t offer that service, we would love to learn more about your processes and how that service fits in. Would you be willing to fill out a brief survey so we can pass your recommendations to our product team?”

How to Deal with Customers

Communicating with customers is challenging. Between all of your clients, it can be confusing to keep track of every conversation, especially when there are too many client messages, including those asking questions and those who don’t respond to follow-ups.

A CRM built for local businesses can make communications much easier. You can have every channel in one inbox, so you know where every message is. Podium does all that and connects to a phone system built for modern local businesses.