How to reposition a service business without losing your existing customers

What repositioning is, and isn't

Repositioning means changing your answer to “who do you help, with what, and why you?”. You might narrow to one type of client, move from hourly work to packages, add a higher-end service or drop work you no longer want.

It isn't just a new logo. If the offer stays the same, a new look rarely changes who contacts you. And it doesn't have to mean a new name: many businesses reposition under the name customers already know.

1. Research first

Start with your own records. Which clients were most profitable, most enjoyable and most likely to refer? What do they have in common? Which enquiries did you lose, and why?

Then talk to clients. Nielsen Norman Group recommends open questions about specific past events, and warns against leading questions. Ask “What was going on when you first called us?” rather than “Would you like a premium service?”. Finally, compare competitors, as the SBA's market research guidance suggests, to find what nobody offers clearly.

2. Write your new positioning statement

Keep it internal and plain. Fill in this template, then cut every word that doesn't help.

• For [specific customer] who [situation or problem],
• [business name] provides [offer]
• that [main result or benefit].
• Unlike [main alternative], we [the real difference, which you can prove].

3. Test it before going public

Read the statement to a few ideal clients and trusted referrers. Do they understand it straight away? Would they refer someone based on it? Then try the new offer quietly with two or three new enquiries before you change the website. Real conversations will show you which words work.

4. Decide what happens to existing clients

Existing clients are usually the biggest risk and the biggest asset in a repositioning. Sort them into groups and decide for each one.

• Clients who fit the new direction: invite them in first, perhaps at their current price for a set time.
• Clients who don't fit but are valuable: keep serving them on the current terms for an agreed period, then review.
• Clients you'll stop serving: give plenty of notice, finish open work properly, and refer them to someone good.

5. Tell existing clients before anyone else

Clients shouldn't learn about a change from your website. Call or meet your most important clients. Then send a short, personal email to everyone else: what's changing, why, what it means for them, and who to contact with questions. Reassure them about what stays the same.

If you send that email to a list, US commercial email rules (the CAN-SPAM Act) apply: an honest subject line, your postal address and a way to opt out.

6. Sequence the public changes

Make the public changes in a set order, so that everything a client or new customer checks says the same thing.

On your Google Business Profile, update the description, services and categories, and keep the same profile so your reviews stay. Google notes that changing your business name after verification might mean verifying again, so only change it if your name has really changed. Business Launch Authority's Business Launch System covers the offer, website, Google profile, announcement and customer plan, built from one positioning.

Questions

Sources

• U.S. Small Business Administration: Market research and competitive analysis
• Nielsen Norman Group: User Interviews 101
• Google Business Profile Help: Edit your Business Profile
• Google Business Profile Help: Manage your business category
• Federal Trade Commission: CAN-SPAM Act, A Compliance Guide for Business

General information, not legal, tax or financial advice. Rules differ by location; check with your own adviser.