Managing Retention And Driving Renewals Flashcards
Who owns renewals in the company?
Everyone has a responsibility but it is important to be clear on “who” owns the renewal process. Who that person is, what their role is etc.
Renewals required a distinct skill and can be hard to manage alongside other responsibilities within the organisation.
Why is it hard for CSMs to own renewals?
Skill set in terms of selling future value that have not yet been realised, or may not be released.
Negotiating price and commercial terms may compromise the CSMs integrity as a Trusted Advisor.
Why is it hard for Sales Executives to own renewals?
Selling to an existing customer requires a different skill set then selling to a new one. It’s more analytical as you’ve got a track record for the existing customers use.
Pursuing an existing renewal also requires a different workflow in comparison to new customers. The funnel, steps etc., are different from existing and new.
What are the five golden rules for a successful renewal process?
1) Get off the back foot (don’t be in firefighting mode, no open issues)
2) Start early (maybe 90-120 days before the renewal itself)
3) Be prepared (know their pains, where they are in the journey, history etc.)
4) Be authentic (don’t try to wing things or bend the truth, be realistic)
5) Be consistent (in your approach, have a playbook(s) ready for it)
What elements could a Renewal Framework include
1) Identification of upcoming renewals (cadence, notification etc.)
2) Segment by renewal confidence (high/medium/low/unsure)
3) Fill knowledge gaps (for unsure, gather more data)
4) Pick a strategy (prioritisation, who will be involved and actions for each segment)
5) Apply appropriate playbook (readied and off-the-shelf)
6) Measure the results (do some analysis and reflect on what went good/bad)
What are the common traps or things to bear ind mind for renewals?
1) Don’t apply a one-size-fits-all strategy (each segment is different)
2) If your value is strong, don’t be afraid to increase prices
3) Don’t discount, find creative ways to deliver more value instead
4) Look after your best advocates, don’t sour the relationship
