Improving Your Renewal Process with Scaling and Personalization

Businesses love thinking customer renewals happen like clockwork. But this assumption is risky, given the money on the table. The cost of losing one customer renewal means you spend 5x of your resources to go get new customers to make up the loss. 

Because of this, businesses can’t just sit back and wait for customer renewal contracts to pour in. If they are not proactive in the customer renewal relationship, the customer may not see immediate value and decide to cancel once the customer renewal comes up. 

So the question is, what can businesses do to stay on top of their customer renewal processes? 

The Problems with the Customer Renewal Process

Customer Renewals Don’t Just Happen: It’s easy for companies to forget about customer 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 customer will drop them. 

Leaving Money on the Table: Companies that are not proactive in the customer renewal process will be leaving money on the table. Not only do they risk losing the customer, but they also miss out on the opportunity of possibly upselling them on other products they have to offer. 

Lack of Visibility on Customer Renewal Health: When it comes to customer renewal accounts, it’s often difficult to pinpoint how likely this customer is to successfully renew. Especially if your team hasn’t been well orchestrating customer success touchpoints throughout the year. The risk is real. 

Solutions 

Engagement Strategy: The highest rate of customer renewal revenue comes from a blended strategy of customer success activities like QBRs, SARs and cross-selling. These engagements need to be timed, personalized and consistently executed in a centralized environment. Customer renewals and upsells are the monetary outcomes of your discipline to the process.

Customer Renewal and 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 customer 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 customers on other services they are offering.

Assessing Customer Renewal Health: If you are trying to collaborate with a customer 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.

Next Steps 

Having proven processes and a dynamic tool for customer engagement is the key to successful customer renewals and account growth. With customer 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 customer renewal process is succeeding?