Keeping Clients in your Coaching Business in a Cost of Living Crisis and Economic Downturn

Every year we seem to be facing some kind of economic crisis. This year in Australia we’ve been battling the cost of living crisis and a potential recession. Next year and beyond who knows what else we’re going to face. 

In these times, many will obviously be looking to pinch the pennies and cut unnecessary costs - especially when it comes to services and products that might be seen as “luxurious”. 

You might find clients may start to categorise coaching as an expendable luxury rather than an essential service - but that’s only if you let them. 

If coaching is truly helping them achieve a long-desired goal that will better their situation, their happiness, or something else they deem valuable, this is not the time to pull away and admit defeat. 

This is the time to take extra action.   

Read the Room, Acknowledge the Reality & Adapt with Reality

The first step in retaining clients during an economic downturn is acknowledging the challenges they are facing and empathising with their situation.  

People are more likely to stay with a coach who empathises with their situation - especially those who are willing to approach the discussion with an action plan in mind rather than trying to avoid the topic. 

Be proactive in talking to your clients about how the economic situation is affecting them. This transparency can strengthen trust, which is the backbone of any coaching relationship.

This might mean considering adapting your services to meet their changing needs. This might also mean offering shorter, more focused sessions, creating group coaching opportunities to lower the cost per client whilst keeping a consistent line of clients, or temporarily reducing the number of sessions. It’s about showing that you're willing to work with them, making your services more accessible during difficult times.

This doesn't mean that you should undervalue your own expertise

Instead, you need to focus on their initial goal and whether or not this is still aligned with their prioritise, and/or it will help them achieve something that will better their situation (bonus points if it better their financial situation in the long-run!)

Whether it’s building resilience, adapting their businesses and lives to a new economic reality, or helping them stay focused on long-term goals despite short-term challenges, remind clients of the unique support you provide that can help them thrive despite the financial climate. In times of uncertainty, clients may become hyper-focused on short-term gains, but as a coach, you have the opportunity to remind them of the long-term value of personal and professional growth. 

Economic crises are temporary, but the benefits of self-improvement, enhanced leadership, and better decision-making last far beyond the current moment. Emphasizing these long-term benefits can help clients see that coaching isn’t an expense but an investment in their future success.

Help clients reframe their perspectives by shifting the conversation from immediate financial concerns to how coaching can be a tool to help them navigate current challenges. Focus on the return on investment your coaching provides, whether that’s improved business strategies, better mental resilience, or higher personal satisfaction. In doing so, you reinforce the idea that coaching is a crucial asset, not a luxury.

Keep Delivering Value

Clients are more likely to cut back on services they perceive as less valuable. Stay ahead of the curve by offering timely insights, resources, and strategies that help clients directly confront the issues that arise in a downturn. 

For example, if you coach small business owners, provide insights on pivoting during a recession or advice on cutting costs without sacrificing quality.

Offer new ideas that feel current and aligned with their most pressing challenges. It could be as simple as a webinar on managing stress in a crisis, or an additional resource that helps them manage tighter budgets while keeping their personal or professional growth on track. Your goal is to make sure they feel like coaching is a key part of their toolkit for navigating this difficult time.

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