Lost Client Analysis Procedures

Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: BD Team, Executives, Project Managers

Purpose

Establish procedures for analyzing lost client relationships to understand why clients leave, prevent future losses, and potentially recover relationships.

Why Lost Client Analysis Matters

Business Impact:

Cost to acquire new client: 5-10× cost to retain
Lost clients may damage reputation
Understanding "why" prevents repeats
Some relationships can be recovered
Industry is small—paths cross again

Types of Client Loss:

Active departure (chose competitor)
Passive loss (stopped using us)
Market exit (client no longer building)
Geographic (moved out of area)

Client Retention Monitoring

Early Warning Indicators:

================================================================
         CLIENT HEALTH MONITORING
================================================================

Review quarterly for key clients:

| Client | Revenue | Trend | Warning Signs | Risk |
|--------|---------|-------|---------------|------|
|        |         | ↑↓→   |               | H/M/L|
|        |         | ↑↓→   |               | H/M/L|

WARNING SIGNS:

☐ Decreased communication
☐ Longer response times
☐ Not invited to bid
☐ Shorter bid lists
☐ Key contact changed
☐ Negative feedback
☐ Payment delays
☐ Project issues unresolved
☐ Competitor relationship visible
☐ Organizational changes at client

At-risk clients (take immediate action):
1. _______________________________________________________
2. _______________________________________________________

================================================================

Lost Client Exit Interview

Exit Interview Process:

================================================================
         LOST CLIENT EXIT INTERVIEW
================================================================

Client: _______________________
Contact: _______________________
Relationship years: _____
Annual revenue (peak): $_________________
Date of interview: _______________________
Interviewer: _______________________

================================================================

INTERVIEW QUESTIONS:

1. Can you help us understand why you've moved to another 
   contractor?

Response:
___________________________________________________________
___________________________________________________________

2. What could we have done differently to keep your business?

Response:
___________________________________________________________
___________________________________________________________

3. How would you rate your overall experience working with us?
   ☐ Excellent  ☐ Good  ☐ Fair  ☐ Poor

4. Were there specific projects or incidents that contributed 
   to your decision?

Response:
___________________________________________________________
___________________________________________________________

5. How does our competitor meet your needs better than we did?

Response:
___________________________________________________________
___________________________________________________________

6. What did we do well that we should continue?

Response:
___________________________________________________________
___________________________________________________________

7. Is there anything that would cause you to consider working 
   with us again?

Response:
___________________________________________________________
___________________________________________________________

8. Any other feedback you'd like to share?

Response:
___________________________________________________________
___________________________________________________________

================================================================

Thank them for their honesty and leave door open.

================================================================

Lost Client Analysis

Root Cause Analysis:

================================================================
         LOST CLIENT ROOT CAUSE ANALYSIS
================================================================

Client: _______________________
Annual revenue lost: $_________________
Relationship length: _____ years
Loss date: _______________________

================================================================

PRIMARY REASON FOR LOSS:

☐ Price/cost issues
☐ Quality concerns
☐ Schedule/reliability issues
☐ Communication problems
☐ Personnel issues
☐ Relationship neglect
☐ Competitor relationship
☐ Client personnel change
☐ Client strategy change
☐ Geographic shift
☐ Our decision (unprofitable, risk)
☐ Other: _______________________

----------------------------------------------------------------

DETAILED ANALYSIS:

If price/cost:
  Were we significantly higher? _____%
  Did they get lower quality at lower price?
  ___________________________________________________________
  Could we have been more competitive?
  ___________________________________________________________

If quality:
  What were the specific issues?
  ___________________________________________________________
  Were issues addressed at the time?
  ___________________________________________________________

If schedule/reliability:
  What were the specific issues?
  ___________________________________________________________
  How did we respond?
  ___________________________________________________________

If communication:
  What was lacking?
  ___________________________________________________________
  Who was responsible?
  ___________________________________________________________

If personnel:
  Which team member(s) were problematic?
  ___________________________________________________________
  What was the issue?
  ___________________________________________________________

If relationship neglect:
  How long since meaningful contact?
  ___________________________________________________________
  Who should have maintained relationship?
  ___________________________________________________________

----------------------------------------------------------------

CONTRIBUTING FACTORS:

| Factor | Contribution | Our Control? |
|--------|--------------|--------------|
|        | High/Med/Low | Yes/No       |
|        | High/Med/Low | Yes/No       |

----------------------------------------------------------------

ROOT CAUSE DETERMINATION:

The fundamental reason this client was lost:
___________________________________________________________

This could have been prevented by:
___________________________________________________________

================================================================

Recovery Strategy

Client Recovery Plan:

================================================================
         CLIENT RECOVERY PLAN
================================================================

Client: _______________________
Lost revenue: $_________________
Recovery priority: ☐ High  ☐ Medium  ☐ Low

================================================================

RECOVERY ASSESSMENT:

Is recovery possible?
☐ Yes - They indicated openness
☐ Maybe - Relationship not completely burned
☐ Unlikely - Strong competitor relationship
☐ No - Bridge burned, don't pursue

----------------------------------------------------------------

IF RECOVERY POSSIBLE:

Issues to address before re-approaching:
1. _______________________________________________________
2. _______________________________________________________

Actions to take:
| Action | Timeline | Owner |
|--------|----------|-------|
|        |          |       |

Re-approach strategy:
___________________________________________________________

Key message:
___________________________________________________________

Who should make contact:
___________________________________________________________

Timeline for re-approach: _______________________

----------------------------------------------------------------

RECOVERY TRACKING:

| Date | Action | Response | Next Step |
|------|--------|----------|-----------|
|      |        |          |           |

Status: ☐ Active pursuit  ☐ Stay in touch  ☐ Closed

================================================================

Aggregate Analysis

Annual Lost Client Review:

================================================================
         ANNUAL LOST CLIENT ANALYSIS
================================================================

Year: _______________________

================================================================

SUMMARY:

Clients lost: _____
Revenue lost: $_________________
Average revenue per lost client: $_________________
Lost clients as % of client base: _____%

----------------------------------------------------------------

REASONS FOR LOSS:

| Reason | Count | Revenue | % |
|--------|-------|---------|---|
| Price | | $ | |
| Quality | | $ | |
| Schedule | | $ | |
| Communication | | $ | |
| Personnel | | $ | |
| Relationship neglect | | $ | |
| Competitor | | $ | |
| Client change | | $ | |
| Our decision | | $ | |
| Other | | $ | |
| TOTAL | | $ | 100% |

----------------------------------------------------------------

PATTERNS:

Most common controllable reasons:
1. _______________________________________________________
2. _______________________________________________________

Team members involved in multiple losses:
___________________________________________________________

Client types most likely to leave:
___________________________________________________________

Competitor winning our clients:
___________________________________________________________

----------------------------------------------------------------

SYSTEMIC ISSUES:

Issue: _______________________________________________________
Action: _______________________________________________________
Owner: _______________________

Issue: _______________________________________________________
Action: _______________________________________________________
Owner: _______________________

----------------------------------------------------------------

PREVENTION RECOMMENDATIONS:

| Recommendation | Expected Impact | Owner | Timeline |
|----------------|-----------------|-------|----------|
|                | $               |       |          |

================================================================

Prevention Strategies

Client Retention Best Practices:

Strategy	Description	Frequency
Regular communication	Check-ins beyond project work	Quarterly minimum
Executive relationships	Senior leader involvement	Semi-annual
Client satisfaction surveys	Formal feedback	Per project + annual
Issue resolution	Address concerns promptly	Immediately
Value demonstration	Show ROI of relationship	Ongoing
Proactive problem solving	Anticipate client needs	Ongoing
Relationship documentation	Track contacts and history	Ongoing

At-Risk Client Protocol:

================================================================
         AT-RISK CLIENT PROTOCOL
================================================================

When warning signs identified:

1. ALERT
   - Flag client in CRM as at-risk
   - Notify leadership
   - Assign owner for recovery

2. DIAGNOSE
   - Gather intelligence on issues
   - Review recent project performance
   - Identify root cause of risk

3. RESPOND
   - Address known issues immediately
   - Increase communication
   - Executive involvement if needed

4. RECOVER
   - Create explicit recovery plan
   - Demonstrate commitment to improvement
   - Track progress

5. SUSTAIN
   - Continue elevated attention
   - Regular check-ins
   - Monitor satisfaction

================================================================

Client Relationship Management
Client Satisfaction Survey
Networking Strategy
Post-Bid Analysis

Template provided by support.construction. It's easier to keep a client than to find a new one—invest in retention.

Purpose​

Why Lost Client Analysis Matters​

Business Impact:​

Types of Client Loss:​

Client Retention Monitoring​

Early Warning Indicators:​

Lost Client Exit Interview​

Exit Interview Process:​

Lost Client Analysis​

Root Cause Analysis:​

Recovery Strategy​

Client Recovery Plan:​

Aggregate Analysis​

Annual Lost Client Review:​

Prevention Strategies​

Client Retention Best Practices:​

At-Risk Client Protocol:​

Related Documents​