Businesses love thinking client renewals happen like clockwork. But this assumption is risky, given the money on the table. The cost of losing one renewal means you spend 5x of your resources to go get new clients to make up the loss.
Because of this, businesses can’t just sit back and wait for renewal contacts to pour in. If they are not proactive in the renewal relationship, the client may not see immediate value and decide to cancel once the renewal comes up.
So the question is, what can businesses do to stay on top of their renewal processes?
The Problems with the Renewal Process
Renewals Don’t Just Happen: It’s easy for companies to forget about renewals. With most of them being done ad hoc, businesses may let important milestones fall through the cracks. However, if a company doesn’t take an active interest in providing value, the client will drop them.
Leaving Money on the Table: Companies that are not proactive in the renewal process will be leaving money on the table. Not only do they risk losing the client, but they also miss out on the opportunity of possibly upselling them on other products they have to offer.
Lack of visibility on renewal health: When it comes to renewal accounts, it’s often difficult to pinpoint how likely this client is to successfully renew. Especially if your team hasn’t been well orchestrating client success touchpoints throughout the year. The risk is real.
Engagement Strategy: The highest rate of renewal $s comes from a blended strategy of client success activities like QBRs, SARs and cross-selling. These engagements need to be timed, personalized and consistently executed in a centralized environment. Renewals and upsells are the monetary outcomes of your discipline to the process.
Renewal and Client Touch Points: The communication process should involve a combined “account review” and “renewal” conversation leading up to renew time. This is a good chance to make the client aware that their account will be billed, and to make sure they are happy and to address any issues they may be having. It also gives businesses the opportunity to upsell clients on other services they are offering.
Assessing Renewal Health: If you are trying to collaborate with a client and you are not getting much feedback, the account should be considered ‘unhealthy’. At that point, you will want to establish a second track of engagement to align other resources and assets including leadership to better uncover status and resolution strategies.
Having proven processes and a dynamic tool for customer engagement is the key to successful renewals and account growth. With renewals and expansion being the growth driver of your organization the need to execute and have complete visibility on the process is a must. We work with CROs, VPs and more to review, align and recommend processes for seamless and personalized customer experiences
What steps will you take to make sure your renewal process is succeeding?
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