Learn how to communicate with your customers after a startup fails. Follow these tips to be honest, helpful, and respectful, and to learn from your failure.

Always substitute your position for theirs and think in their shoes. Empathy is key: 1. Acknowledge the Failure. 2. Express Gratitude. 3. Explain the Reasons. 4. Share Lessons Learned. 5. Highlight Customer Impact. 6. Provide Alternatives. 7. Request Feedback. 8. Maintain Open Communication. 9. Stay Connected. 10. Express Future Intentions.

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How do you talk to customers after a startup fails?

Failing as a startup is hard, but it's not the end of the world. You can learn from your mistakes, pivot to a new direction, or start over with a new idea. But before you move on, you need to talk to your customers. They are the ones who trusted you, supported you, and gave you feedback. How do you communicate with them after a startup fails? Here are some tips to help you handle this sensitive and important conversation.

1 Be honest and transparent

The first thing you need to do is to be honest and transparent with your customers. Don't hide, delay, or sugarcoat the news. Tell them what happened, why it happened, and what you are doing next. Explain the situation clearly and concisely, without blaming others or making excuses. Apologize for any inconvenience or disappointment you caused them, and thank them for their loyalty and trust. Be respectful and humble, and acknowledge their feelings and concerns.

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Ahmed AlTammar

Investment | Innovation Architect
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Always substitute your position for theirs and think in their shoes. Empathy is key: 1. Acknowledge the Failure. 2. Express Gratitude. 3. Explain the Reasons. 4. Share Lessons Learned. 5. Highlight Customer Impact. 6. Provide Alternatives. 7. Request Feedback. 8. Maintain Open Communication. 9. Stay Connected. 10. Express Future Intentions.

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Jason Roundtree

Professional People Person
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I was the "face" of our company, and had garnered some serious client loyalty. When I told them I was leaving the company, I went in with the mindset that we were people first, business partners second. It's easy to get swept up in the day-to-day grind of startup life, but take a deep breath and remember that everyone you're working with has their own personal stuff happening too. I was honest and direct in each of my exit conversations. They were all surprisingly easy because my business partners returned the empathy I'd given them throughout our working relationships. Be honest, don't hide and remember that we're all human.

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2 Provide alternatives and options

The second thing you need to do is to provide alternatives and options for your customers. Depending on the nature of your product or service, you may be able to offer them a refund, a discount, a credit, or a transfer to another provider. You may also be able to recommend them other solutions or resources that can help them solve their problems or meet their needs. Be generous and helpful, and try to make the transition as smooth and easy as possible for them. Don't leave them hanging or stranded, and don't burn any bridges.

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Jason Roundtree

Professional People Person
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I always try to be truly helpful. To me, that means providing value, even if it doesn't benefit me. If my company isn't the right fit, I'll always tell you. Remember that you can still provide value when you lose. When I left my company, I connected almost all of my customers to other resources I trust because I cared about making sure they landed alright. People don't forget things like that. I'd rather lose and keep a great relationship than win and burn bridges. Many of the customers I sent elsewhere have come back to me in other capacities because they remembered how I left things with them way back when.

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3 Ask for feedback and insights

The third thing you need to do is to ask for feedback and insights from your customers. This is a valuable opportunity to learn from your failure and improve your future endeavors. Ask them what they liked and disliked about your product or service, what they expected and what they experienced, and what they suggest and recommend for you. Listen to their opinions and perspectives, and take note of their praises and criticisms. Be open-minded and curious, and don't get defensive or argumentative.

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Jason Roundtree

Professional People Person
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Feedback and insight! Feedback and insight! This should be drilled into your business ALWAYS. You're a fool if you're building products for customers you aren't talking to.

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4 Share your learnings and plans

The fourth thing you need to do is to share your learnings and plans with your customers. This is a way to show them that you are not giving up, but rather growing and evolving from your failure. Share with them what you learned from your mistakes, what you changed or improved, and what you are working on or exploring next. Tell them about your vision and goals, your challenges and opportunities, and your passion and motivation. Be positive and optimistic, and don't lose your confidence or enthusiasm.

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5 Invite them to stay in touch

The fifth thing you need to do is to invite them to stay in touch with you. This is a way to maintain and nurture your relationship with your customers, and potentially win them back or attract them to your new venture. Invite them to follow you on social media, subscribe to your newsletter, join your community, or contact you directly. Tell them that you value their support and feedback, and that you would love to hear from them again. Be friendly and genuine, and don't spam or pressure them.

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Jason Roundtree

Professional People Person
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Just because your business fails doesn't mean you're a failure. Keep these relationships going because you never know who can help you down the road. You may kick up a new venture and find that many of your existing relationships can jump right back in to help.

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6 Show gratitude and appreciation

The sixth thing you need to do is to show gratitude and appreciation to your customers. This is a way to end the conversation on a positive and respectful note, and to express your sincere and heartfelt emotions. Thank them for being your customers, for choosing you, for trusting you, and for helping you. Tell them that you are grateful for their time, money, and attention, and that you appreciate their patience, understanding, and kindness. Be humble and gracious, and don't forget to smile.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you talk to customers after a startup fails?

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1 Be honest and transparent

2 Provide alternatives and options

3 Ask for feedback and insights

4 Share your learnings and plans

5 Invite them to stay in touch

6 Show gratitude and appreciation

7 Here’s what else to consider

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