Renewal Defense Flashcards
Why doesn’t GLG offer to rollover unused credits? (Subscription Model, ‘Rollover Trap’, Conservative Commitment Sizing)
Our subscription model delivers better outcomes for clients because it allows us to invest in and put the right/needed team on the field to be able to solve for each clients’ unique needs. However, we do solve commitment concerns by sizing relationships conservatively.
Our subscription model gives us an edge as a business: Greater revenue visibility gives our finance team the confidence to make the kinds of investments that produces a better experience for clients.
‘Rollover trap’: We also hear stories from new clients about the ‘rollover trap’ of accumulating unused credits over successive periods, and being forced to choose between renewing a sub-par (and keeping unused credits) or canceling (and wasting what they’ve paid for).
We solve it by sizing a commitment conservatively: We are happy to undersize the initial period as we establish cruising altitude for the relationship, particularly for clients new to leveraging a research platform
All my peers are multi-sourcing. Why should I work exclusively with GLG?
There are benefits to sole-sourcing with GLG. Many of our clients who have moved to multi-sourcing have found significant productivity loss due to dealing with multiple vendors. As a result, a number of those clients have gone back to sole-sourcing with GLG after they multi-sourced.
By sole-sourcing with us, we are able to build institutional knowledge as to your firm’s unique processes, needs, etc. save you time, dedicate resources and are therefore better able to serve you. We have also heard from many of our clients that multi sourcing leads to overlap in the experts that we provide to you.
By multi-sourcing you are spreading the value of your spend/business across multiple providers and making yourself a less valuable client than if you sole-sourced. Following that logic, if you elect to sole source for the best customer service/prioritization possible, wouldn’t you want to do so with the biggest/best provider?
Some of our clients dual-source for redundancy, optionality etc. But we have found those clients who use more than two providers end up with inferior/mediocre service from all of them. If top tier treatment is the goal (and we certainly believe it should be) then we’ve found one or at most two providers is best.
