People outgrow all sorts of things. Clothes, houses, jobs, relationships. And yes, software and services. It’s part of the natural order.

If they no longer fit, wish them well. If you can help them fit in a way that benefits your customer base as a whole, then local accommodation equals global improvement. That can work.

But there's a deeper issue here, and it's wrapped in the statement "one of your largest customer[s]".

While many think having a "largest customer" is an asset, it's actually a company's biggest weakness. If you can feel a single customer leave, you're in a delicate spot. If you have a customer you can't afford to lose, you're in an even worse position. Now you're no longer a sovereign company making your own product, you're a consulting firm making custom software for that biggest customer, or others like it. Now you're tethered. Not good.

So what do you do? Cap your prices. Don't let anyone pay significant more than anyone else. Have a customer base that looks like even static, each one's financial footprint essentially indistinguishable from another. So if any random customer left, you wouldn't feel it — or fear it.

I wrote more about this, using our company as an example, here:

-Jason