The Australian suffered a third contentious Shanghai Masters exit in as many appearances after his efforts in a first-round loss against world No 104 Bradley Klahn were described as "borderline" by umpire Damien Dumusois. Dumusois then underlined to Kyrgios what he exactly meant: "You know exactly what I meant, Nick".
"I think it's really up to him where he wants to go and what his potential really holds", said the 20-time Grand Slam victor.
With his ranking at 38 in the world, Kyrgios is now in danger of not being seeded for the Australian Open in January, with the top 32 players guaranteed to be seeded for the season's opening grand slam.
Only through understanding work ethic and scheduling, creating the right team around himself, only then can you unlock the potential really..
"He can win bigger tournaments and do all these things", he added.
"But there is still a process in place".
Raonic and Kyrgios were both ousted in three sets by Mackenzie McDonald and fellow American qualifier Bradley Klahn respectively, but 10th seed Stefanos Tsitsipas was able to progress courtesy of a 7-6 (7-4) 4-6 6-4 success over Gael Monfils.
Kyrgios' Shanghai strop is the latest controversy to engulf him in China.
But a sloppy service game down 4-5 cost Kyrgios the set and he unravelled from there amidst a stretch of five lost games. "There's a way of playing tennis on a tennis court", he said.
"When he has to go somewhere and that isn't the case, we see him a little jaded and we see him play the way that he did. He gets exhausted and then it's regrettable for him".
Later Kyrgios said to Dumusois: "You know I literally could just go to the ATP office after this and say I felt put down from your comment and you'd be in trouble, right? You have no right to tell me that it's poor".