What are the best ways to increase the likelihood of a successful renewal negotiation?

With the plethora of competitive alternatives a client can choose to take their business, they choose your company. Price may seem to be the prominent factor however it is the placement of the value you offer they choose to spend their money on. Communicating the value of what you offer in lieu of the customers needs is imperative as this indicates the proposition of your products & services.

This is not something you can begin 30 days before a renewal. You need to know the value you provide, and start a process of renewal long before the date approaches. What are the value metrics your CLIENT cares about. Your company can have all the vanity metrics it wants. If you don't know which metrics your client is actually judging you on, renewal becomes increasingly difficult.

Customer's churn for 1 reason only (unless going out of business). That 1 reason is that you have not proven the value to them.

During Negotiation/Renewal phase: 1. Know your customer's business goals, know your champion's professional goals. 2. Open negotiations early 3. Know your threats 4. Remember that in a negotiation, it is almost always valuable to have everything on the negotiation table. During your service period: 1. Show your competence during service requests. 2. Responsiveness is key 3. Credibility is built by accomplishments, make sure to highlight your professional ones

It's the most basic of all business practices - communication. If you have communicated with your customer during their whole customer experience and have managed their expectations successfully, closing them to renew should be fairly easy. As customers, we want to feel important and appreciated, communication is a key component of that. Retention of your customers should be a top priority for your company and should not be overlooked for continued revenue streams.

Don't do CSM drunk dialing. Calling the customer last minute after not having a relationship, and then asking for a renewal. Renewals are business Business happens thru relationships

In successful renewal negotiations, cultivating empathy and rapport is crucial. Active listening, genuine empathy, and authenticity build trust and understanding. The synergy of empathy, rapport, authenticity, and sincerity forms the foundation of enduring and mutually beneficial renewals. Empathy also ensures that the other person will be more communicative during the process, and information is the most crucial part of locking in deals. It is a win-win situation if you have genuine regard for the other party as sooner or later you would stand out from the other competition.

Building rapport is very key and would involve you building friendships with your clients. It is soo vital that you would have to go as far as calling your clients to simply wish them a happy birthday or check up on them. One key thing to note in rapport building is to know when to not overdo it. Some clients are simply fine with a once in a while check up while others are fine with being friendly during business. You have to know your clients to know what kind of friendship to build with them so you don’t overstep your boundaries.

In my experience show genuine care for the business the customer has with the company, listen to the customers concerns, resolve the concerns and correct any errors that may have made in the past if they are looking at competitor know there products as well as your own. Account manager them and check in with them in a month.

Successful renewals are built on the back of relationships dot you can’t screaming at the last hour thinking it’s going to get you anything. Put the time in now and invest in the relationship…customers want a partner not a vendor

Why is customer retention important? It’s up to five times cheaper to retain your current customers than it is to acquire new ones. The probability of making a sale to an existing customer is 60-70% . Retaining your current customers increases word-of-mouth recommendations and loyalty. Existing customers are more likely to spend 30% more on a new product than a first-time customer. A higher customer retention rate leads to greater profits and lifetime customer value (LCV). Long-term customers can provide useful data and feedback for future brand campaigns and strategies.

It is truly important to show customers that they have a choice. My experience shows that when forced to adapt to a product - for example, if your company implements changes - customers often feel as if they are being pushed into something they don't want, even if, objectively speaking, this will be more beneficial for them in the long run. Offering different options, highlighting the benefits and NOT hiding the disadvantages will help your client make an informed decision that they will not regret. And if the customer runs into any problems later, they will already have been informed of all the pros and cons and will be in a good position to take the right action to resolve it.

Typically within SaaS contracts you find that multiple levers to use… Whether it’s the package, the length or term of the contract, the payment terms… These all become points of negotiation.

One thing I have discovered when it comes to customer retention, is that it's not always about money. There has been times when I have lost to a competitor that was more expensive, but offered more flexibility when it came to contract terms and movement. It;s great having a standard pricing/product structure, but being able to demonstarte felixibility and willingness to change some aspects to gain business goes a long way.

Expressing gratitude and collaborating on solutions strengthen connections at every stage of business cycle but more so during follow up stage . Post-negotiation follow-ups with a personal touch solidify relationships. Authenticity remains crucial, turning negotiations into a shared journey marked by genuine experiences. The morale and excitement for the deal must not fade during the later stages of contract lock-in, if such is the case then it showcases lack of sincerity.

It sometimes may be quite difficult to get hold of decision-makers, as they are always quite busy. 1. Keep your communication short and clear, so that when opening an email from you the person can instantly understand what it is about and what the purpose of communication is. 2. Make sure your message carries a clear value for the customer. 3. Don't be afraid to follow up. It happens to us all, that in the rush of the workday we open an email, then get distracted and forget to reply, especially if it is not a top-priority issue. Sometimes one or two follow-ups are required to finally kickstart communication and schedule a proper CS call.

Doing the little things great is where you set yourself apart. The small details matter when closing up a renewal, so make sure that you are finding the right ways to close the loop, and sending across the details that matter

Establishing good connection and trustful relationship with a customer is a key to success. 1. Make sure, if a customer approaches you - you are always there for them to resolve any queries quickly and efficiently. 2. If the customer themselves needs to take steps to resolve the problem - make sure they know what to do and give guidance if needed. 3. After the problem is solved - follow-up in a week or a month, depending on the type of business, and make sure everything is working fine. This way you show that you trully care about customer's success.

View the renewal negotiation not only as a transactional moment but as the commencement of a continuous commitment to customer satisfaction. Beyond meeting contractual obligations, consistently delivering value, proactive communication, and identifying enhancement opportunities will fortify the client relationship, fostering loyalty that extends beyond mere renewals to potential referrals and sustained partnership.

Something to think. In our daily lives, each of us plays the role of a customer, and the significance of customer service becomes evident through our experiences. How we are treated during these interactions leaves a lasting impression – a positive encounter encourages our return and prompts us to recommend the service to others. The initial impression is crucial; it marks the beginning of a journey where we accompany the customer throughout, aiming to enhance the value we bring to their business.

Treat their renewal as a big deal get your teams excited to continue working with the customer. Get the customer excited to be working with your teams. It really should be a another moment along the customer journey where you find momentum with the customer.

You do work for a business, so in the long run, you need to be making sure that you are optimizing the renewal process to make sure that we get the optimal result for the business… More renewals at higher value.

Renewal should really be a non-event. Customer Success = Desired outcome + Appropriate experience. As long as those two are achieved, the customer WILL renew.

In my opinion renewals are based upon the need of the product/service. If you are an educational provider, your clients will only renew when there is a need for it. Otherwise you cannot force them to renew. There are several other factors involved as well like the professional connection between you, your services and your clients. Additionally, the clients will renew if you provide value to them or their teams.

Yes , renewal should be a non-event. In my experience, you need to enter into the relationship with the client with a mindset of having the long-game in mind ,rather than just "keeping the lights on". This can mean challenging the client at certain times, but a lot of CSMs are totally unsuitable to be able to do this.