Managing Upsells and Renewals... Without a CPQ?
Mark Lerner
Director of Growth Marketing & Host of the RevAmp Podcast at DealHub | AI-powered CPQ, Contracts & Subscription Billing
Recently, I came across a #RevOps question that really got my neurons firing.
So I figured it might be useful to give a full break down here.
Warning: TL;DR!
Question: "How do we effectively track and compare upsells, especially in the context of overall renewal growth, without using a CPQ?"
Although I'm pretty well acquainted with how well an agile, next-gen CPQ could handle this, the idea of trying to solve it without a CPQ felt like a fun exercise.
?? Tackling it WITHOUT a CPQ:
1. Differentiating Deals
?? Clear Record Types: Ensure ‘Pure Renewals’, 'Renewals + Upsells', and 'Upsells' are distinctly labeled.
?? Real-world Relevance: Remember the woes of analysts facing disheveled data?
2. Analyzing Revenue
?? Custom Fields: Insert ‘Upsell Revenue’ and ‘Renewal Revenue’ fields to navigate through deal financials.
?? Example: A client desiring an additional feature mid-renewal is tracked separately but linked within a unique opportunity.
3. Diving into Data
?? Calculated Metrics: Deploy calculated fields/workflows to extract upsell percentages and comparative renewal growth.
?? Visual Data Insight: Leverage dashboards to dynamically represent renewal growth and upsell relationships.
?? Tangible Takeaways
?? Understand Your Data: Navigate the nuances of your upsell and renewal data to carve out data-driven strategies.
?? Strategize for the Future: Anchor future customer engagement and upselling strategies in accurate data insights.
?? Visualize the potential of supercharging these strategies with automation!
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?? Approach WITH a CPQ:
Let's drop a quick disclaimer: Not all CPQs can do this without considerable elbow grease and more than a bit of head-banging-against-the-wall.
Some legacy tools might ask for a fair bit of... let’s call it, intricate maneuvering.
But let's take a look at dealing with this scenario when you have access to an agile, next-gen CPQ like DealHub:
1. Speed and Precision in Quoting
?? Instant Quote Generation: Fast, accurate quotes are produced, even amidst complex deal environments.
?? Example: Those sudden, last minute quote changes are implemented automatically, obviating the need for manual, cumbersome recalculations.
2. Effortless Upselling
?? Automated Upsell Alerts: Upgrades and upsell suggestions are automatically presented, negating any opportunity loss.
3. Flawless Workflows
?? Seamless Progressions: Transition from configuration to quote, to approval, ensuring consistent data flow into your CRM.
4. Strategic Sales Ops Management
??? Guided Selling: Implement sales playbooks and scenarios to enhance deal sizes and product fit.
5. Practical Application
?? Scenario Revisited: With DealHub, renewals are managed with automatic upsell identification, quote generation, and approval management.
?? In Conclusion This exercise of dealing with the management of upsells and renewals manually was a challenge, but certainly illuminating.
Going through it clarified for me the value of a well-implemented, flexible CPQ to strategically pave a path for enhanced, data-driven decision-making and robust revenue growth.
Whichever path you tread—manual or automated via a CPQ, homing in on your data, upsells, and renewal opportunities is crucial for formulating intelligent, scalable sales strategies.
Excited to hear your thoughts and experiences regarding managing upsells and renewals. Feel free to drop your own experiences in the comments!??????
#DealHub #CPQ #SalesStrategy #RevenueGrowth #DataDrivenDecisions #RevOps