2/21/2024-Renewing an account

Find out the facts about how your customer feels about your company’s execution and service and use it to improve execution. Your renewal rates will go up when execution is strong.

Renewing business starts immediately after you celebrate a big account win.

Of course, it’d be inappropriate to start pitching Contract #2 while working through all the activation stuff of Contract #1.

Immediately after you pass the onboarding and initial execution phase, start creating your strategy because that’s when the client will be the most receptive to another commitment.

This whole renewal thing only works if your client is pleased with your service and performance….so nail that first.

Today, review how you and your company execute contracts and activate deals. Make a list of needed enhancements and pass them along to those in your org who can make changes.

Don’t wait for a deal to close to gather the insights you need; contact a recently onboarded customer and ask them, "How happy were you with our onboarding and execution?"

As the account owner, your recommendations to management will matter more when you pass along first-hand customer anecdotes and feedback.

Just because your client bought once doesn’t mean you’ll skate through the renewal process and they’ll buy again.

In fact, it’s just the opposite.

When your customer is ready to go again, they’ll know much more about how your company services them and how your performance meets their objectives.

Don’t gripe if you don’t like what happens when you hand over your Closed-Wons to other teams in the org…but don’t sit back either. Your reputation and credibility with the customer are at stake, so at the least, help the org understand how your client wants to be onboarded and serviced.

According to the book Marketing Metrics, businesses have a 60 to 70% chance of selling to an existing customer, while the probability of selling to a new prospect is only 5% to 20%. This fact strongly suggests you must help your company get their house in order so that it’s easy for your clients to keep buying.

Obviously, it’ll be harder to renew business if your customer is unhappy with your company’s execution.

As you’ll see in this R-rated 2-minute farce from SNL, Starbucks had a big fictional execution issue when trying to break into the home market. (This clip is fun!)

Closing the deal is important, but it is crucial to make the customer feel 100% certain they picked the right partner.

Without good service, you’ll struggle with renewing biz.