How can you overcome common issues during the renewals process?

One thing that I've found very useful is to have outcomes-based success plans that help prove the value that we've been able to deliver from day 1. It includes everything that the client expected out of the product, mapped with the right stakeholders, timelines, and metrics. It helps everyone stay aligned and focused on the goals and customers know from the beginning itself what we're working on and what value we've been able to deliver. The client is well-informed of everything and feels empowered and valued from the day they start with this whole collaborative approach. It puts the CSM in a strong position to talk about renewal or any upgrades in the account because As a CSM you've earned the position of a trusted advisor.

Shift the conversation from mere sales pitches to an educational and empowering dialogue. Provide your clients with valuable insights, industry trends, and tips that can help them maximize the benefits of your product or service.

Typically a combination of Sellers, Channel Partners, and Customer success managers at an account planning stage can help understand the customer sentiment and define value prop for the customer. I would recommend this conversation happening even before the first customer check-in. For longer sales cycles and complex sales (Migration, Expansion) account planning for renewal should occur at least 2qrs out.

Value realisation is a prescriptive way to meet the expectations of the customer throughout the customer's journey from sale to renewal. Hence, value alignment needs to start from the point of sale in order to align the customer's expectation as to how they will solve their problem for x rather than only discussed at the renewal stage. In practice, this means translating the customer's expectations into specific outcomes and impacts and placing those on a timeline where it is easy to visualise critical milestones and the time to value.

As a Customer Success Manager (CSM) or a Renewals Manager, it is not enough to understand your value. To overcome common issues during the renewal, it is important to first, lead with customers' desired outcomes right from the point of sale or customer onboarding and throughout the customer journey. Only then you would be able to demonstrate their ROI. So where do you start? 1. Co-create your customers' desired outcomes and how they will measure if the outcomes are achieved in their metrics/KPIs. 2. Document what needs to happen in order to achieve the customer's desired outcomes in the Success Plan. 3. Create a change management strategy that leads to the desired outcomes (tech stack integration, roll-out, user awareness et al.)

Objections for renewal often arise from the fact that customers are unsure if they have gained value and are unable to articulate a business impact from your product or service. The business impact is the realization of the value that was promised when the customers initially bought or renewed the last time around. The best way to demonstrate impact is to demonstrate ROI in the form of a reduction of cost or an increase in revenue. If this is not possible to directly demonstrate ROI from your product, then think of creative ways that you can work together with your customer contact on how impact can be demonstrated. This approach leads to a reduction in the number of renewal objections.

Tailor your renewal approach to provide customized solutions that directly align with each client's unique objectives and challenges. Rather than a one-size-fits-all response, craft specific proposals that address their concerns, showing a genuine commitment to their success.

Consistently execute the co-created Customer Success Plan and Change Management Strategy, mitigate the challenges, and continue the customer journey toward achieving the customer's desired outcomes, and your customer will witness the value that you deliver. Once the value realization is achieved, you have won half the renewal battle. The other half is the external factors leading to renewal pricing objections such as budget cuts. To avoid any last-minute surprises, ask your customers, including your economic buyer, sponsor, champions, and stakeholders a simple question: "If you were to renew today, would you have any objections"? Listen actively. There you have the customer objections. Now cross-collaborate internally and externally.

To tackle the renewal twists, anticipate objections like a pro: ?? Know Their Pain: Understand your client's challenges from the get-go. Knowledge is your power! ?? Data-Backed Convos: Use usage and success data to craft compelling arguments. Numbers speak volumes. ?? Open Dialogue: Keep the conversation going throughout the year, not just at renewal time. Be a friend, not a salesperson. ?? Early Bird Gets the Worm: Start early; last-minute scrambles are a no-go. Early engagement smoothens the path. ??? Objection-Ready: Be a mind reader! Prepare for objections and have persuasive counter-arguments in your arsenal. ?? Effective Communication: Explain the value they've received clearly. Sometimes, objections arise from misunderstanding.

The best way to anticipate objections about a renewal is to ensure that throughout the year you're keeping you eye on their goals and showing them ROI. Try to keep to a quarterly meeting cadence and in every meeting discuss their usage numbers, growth, and strategies on getting them closer to their goals.

It can be useful to consider having a finance department send the renewal proposal/invoices etc - it will ensure you remain their trusted advisor, they'll feel you're on their side. Even if you're the one doing the work behind the scenes, this distance can be very useful in maintaining the relationship.

With existing customers we have a deep understanding of the value that we currently bring but also the potential additional value. When discussing price increases or payment terms change we pre-plan the levers that we can offer to soften the blow. These could be things such as: 1. Logo usage on website 2. Written testiomonial 3. Introduction X amount of people within their network The most important thing when negotiating renewals and you propose a price increase is to have clear validation as to why it is happening. If you can reference increased costs i.e. Azure going up XYZ then it strengthens your case and adds reason to the increase that is easily validated.

To conquer common renewal hurdles, effective negotiation is your golden ticket. Start by immersing yourself in your client's world, understanding their unique goals, and pain points. ?? It's like stepping into their shoes; you'll see the path ahead more clearly. Utilize data as your trusty sidekick. Numbers speak volumes. ?? Show them the value they've reaped, how your solution has boosted their ROI. Be their data-driven guide. Build strong relationships year-round. ?? A genuine connection based on trust can be the wind beneath your negotiation wings. It's not a transaction; it's a partnership. Encourage open dialogue. Maintain a constant feedback loop. Listening actively can unearth concerns before they become roadblocks. ??

Embrace flexibility in contract negotiations to cater to your clients' evolving needs. Instead of rigidly adhering to preset terms, explore creative solutions that can accommodate their requests while maintaining the integrity of your service.

At times SaaS companies have to give discounts to retain existing customers due to factors that are not related to the product or consumption/usage. But these discounts have to be positioned as an investment from your side to extend the partnership with the customer to avoid the logo churn and trade that with a case study, extended renewal duration, et al. Because you have delivered on the customer's desired outcome and led with value realization, you have ensured your product's stickiness and the customers realize they need your product. It is now a pain killer and not a vitamin anymore. CS leaders have to design the renewal as a win-win proposition.

Building rapport is more than just a buzzword; it's the heart of meaningful connections. In sales and beyond, the power of genuine rapport sets leaders apart. Let's delve into the essentials that make rapport a game-changer in business and life. Active Listening: Listen actively to build trust. Adaptability: Adjust your communication to connect with diverse individuals. Empathy: Show understanding of others' needs. Consistency: Be reliable to maintain rapport. Transparency: Embrace honesty for stronger relationships. Personalization: Tailor your approach to individuals. Body Language: Non-verbal cues matter in rapport. Follow-Up: Stay committed with post-interaction follow-ups.

The rapport needs to be maintained throughout the cycle not just at the point of sale and renewals. Ideally it should be with the same person rather than the brand. Regular calls to gauge feedback and likeability of the offering not only helps build that rapport but helps in product cycles as well.

Building rapport can be a valuable tool in overcoming common issues during the renewals process - 1. Interest and Engagement: Research on customer's business goals, important KPIs and product offerings will give your customer confidence that they are in the right hands. Show how the renewal aligns with their broader goals and objectives. 2. Readiness to Change: Evolve your approach with changing customer needs and expectations. Explain the value they will receive with new features. 3. Transparency: Build trust by being transparent and honest in all your interactions. 4. Decision-Maker Involvement: Engaging with gatekeepers at every level brings customer's confidence.

More than building just rapport you need to aim to become their consultant and trusted business advisor. You need to be prescriptive. You need to multi-thread your communications so that you are not only able to influence various stakeholders involved with your product but more importantly, avoid any single point of failure (SPOF). Imagine your single point of contact (SPOC) leaving the organization right before the renewal. Now you do not have to start again because you have multi-threaded your communications and have an established cadence at multiple levels.

One of the most effective ways to deal with renewal related issues is to build rapport with your clients throughout the customer lifecycle. Rapport is the foundation of trust and loyalty, and it can help you create a positive and lasting relationship with your clients. What is a key recipe for building rapport? Communicate regularly and proactively. Don’t wait until the renewal date to reach out to your clients. Instead, check in with them periodically and provide them with updates, feedback, and insights. Show them that you care about their goals and challenges, and that you are always available to support them.

If you don't ask, the answer is always a no. So it would only make sense to ask. Ask for referrals, ask for a case study, ask for a customer spotlight, et al. When you ask, do not make it about you but also make it about them. Articulate the value for your customers. Position it as the referral establishes your customer as a leader in the industry. You get the drill.

When requesting advocacy from our existing customers we always outline the benefit it provides us as a business but also to them as the referrer i.e.: 1. We only introduce them to customers who share a similar use case. Should the new customer start working with us it indirectly benefits the referrer by deepening their use case within our customer base. 2. That overall, the wider the customer base the more capability we have to expand and reinforce our operations and roadmap plans 3. It provides the referrer an opportunity to meet someone in the same industry doing their role

Referrals are the ultimate proof of customer loyalty and advocacy, and they can help you increase your credibility and influence with your clients. Here are a couple tips on how to ask for client referrals: Ask at the right time. Don’t wait until the renewal date to ask for referrals. Instead, ask when your clients are most happy and satisfied with your product or service, such as after a successful launch, a positive feedback, or a significant result. Ask in the right way. Don’t be pushy or desperate when asking for referrals. Instead, be polite and respectful, and explain how referrals can benefit both you and your clients.

Asking for referrals is more than just expanding your network; it's an endorsement of trust and a testament to the quality of your work. By seeking referrals, you not only grow your business but also validate your reputation, foster organic relationships, and build on existing success. It's a strategy that turns satisfied clients into powerful advocates, propelling your venture forward.

This is so very true in any business, especially now in the internet age. Asking for referrals is essential for new and growing businesses to gain more clients, and for existing larger businesses to maintain or increase their client base and good rapport with them.

If you put everything discussed above into practice, you as the Customer Success Manager (CSM) or Renewal Manager, are better positioned for higher renewal rates and to achieve your GRR targets. However, sometimes your customers will still churn and that is okay. Do a post-mortem analysis to decompose your customer value realization, document the lessons learned, and continually improve. Perhaps the customer is not in your ICP anymore and in that case, this is a healthy churn. Not all customers renew, some churn!

Delivering all of the above at the point of renewal discussions may be futile if senior leadership have already cut budgets or decided to put the contract out for tender. Realising full value early in the contract (through the monitoring of time to FULL value), maintaining a strong relationship and ensuring ongoing engagement and success can result in a seamless renewal with no need to get into protracted negotiations. Engagement throughout the contract term is paramount to achieve this.