Four ways to say good-bye  

The strategies for a termination by the provider can be ­derived from the four basic models of inter-human relationships ­described in social psychology. Starting from the degree of consideration and customer friendliness which the provider shows and the form in which he addresses his intention to terminate the relationship, it is possible to describe four fundamental approaches to a termination.    

The least expensive, but also the least customer-friendly ­approach is to present the customer with a fait accompli in the form of a written and one-time notification (letter of termination). This course of action has the objective of either processing the termination “quickly and painlessly” or – in rare cases and depending on the reason for the termination – acting as a deterrent on the customer in the sense of an educational measure to communicate the message: “We do not accept this kind of conduct.”

If the provider wants to give the customer an indirect signal that he intends to terminate the relationship in the near future, he can either reduce the “service level” or raise the costs. This approach is not always deemed to be fair because the intention in both cases is to provoke the customer into terminating the relationship himself. If the customer stays with the company despite, for example, a rise in charges, he will at least be raised to an acceptable profitability level. However, there is a danger here of a negative effect on company image which can come from customers who leave the company in anger because they believe the company is too expensive or provides poor service.   

Another possible way to initiate a termination discreetly is the strategy of retreat. This refers to the steady phasing out of the contract frequency to the customer and with it a reduction in intimacy in terms of trust to the provider. In the extreme case, the provider can simply not be reached when the customer wants to contact him. This strategy allows the “silent” execution of the termination at a certain point in time. It means that from a ­certain point in time the customer has become accustomed to the provider’s absence and will consequently not even be aware of the actual termination that follows.    

The fairest, but also the costliest, option is the end-of-the-relationship-talk with the goal of convincing the customer of the objective necessity for the termination. Since the irrevoc­able termination occurs within the framework of a dialog, the customer can respond to the circumstances of the termination immediately. The challenge for the provider in this case is to tell the customer of the termination, accept and clarify any possible complaints and emotions, assure mutual understanding, and, finally, say good-by to the customer “with no hard feelings” on anyone’s part, and to do all of that within a short time. Excellent providers make that happen – although this option is undoubtedly one of the most demanding. But it is worth the effort. The study shows that customers who have been terminated within the course of a meeting have a significantly more favorable long-term attitude towards the company.