How will this affect customer relationships and the competitive situation of our company? what is the best strategy for preventing this condition?
According to me, you should once send him a mail showing that if he will not renew the service and support contract, then it will cost him higher than regular rates or get delay in receiving service. along with it may happen that he will not get any kind of help from side.
And same thing you should talk on phone call keep the copy of recording of conversation. It will help when clint will blame you.