A recent LinkedIn poll indicated that everyone and no one owns renewals, this creates conflict internally and significantly creates a very poor customer experience.
There are some essential elements of the renewal process that should be considered, no matter who owns the renewals.
- Customer first
- cross sell
- decision options esign, credit card, po, sharable
- to and through channel
- real time updates and dashboards
- ML to focus on “likely to churn”
- access to data across business units….
Renewals are an important part of any business, especially those that operate on a subscription-based model. As such, determining who should own renewals can be a contentious issue within companies. The three main stakeholders in this discussion are sales, customer success, and a team effort. Each of these groups has its own strengths and weaknesses when it comes to owning renewals, and there are valid arguments for each approach.
Sales teams are typically the first point of contact for potential customers, and they play a crucial role in closing deals. Because of their close relationship with customers, they are often seen as the natural owners of renewals. Sales teams are skilled at building relationships with customers and understanding their needs, which can be helpful when it comes time to renew a subscription. Additionally, sales teams are often incentivized to close deals, which means they have a vested interest in ensuring customers renew their subscriptions.
However, sales teams may not be the best owners of renewals for several reasons. First, their focus is often on new business, and they may not have the bandwidth to dedicate the time and resources required to properly manage renewals. Second, sales teams may be less effective at managing ongoing relationships with customers, which could lead to a lack of engagement and potentially lost renewals.
Customer success teams are responsible for ensuring that customers are achieving their desired outcomes with a product or service. Because of this, they are well-positioned to own renewals. Customer success teams have a deep understanding of customers’ needs and can work with them to ensure that they are getting the most value out of their subscriptions. Additionally, customer success teams are often focused on retention, which means they are highly motivated to ensure that customers renew their subscriptions.
However, customer success teams may not be the best owners of renewals for several reasons. First, their focus is often on helping customers achieve their desired outcomes, which may not align with the sales team’s goals of upselling or cross-selling additional products or services. Second, customer success teams may not have the necessary authority or resources to manage renewals effectively.
Another approach is to make renewals a team effort, with both sales and customer success teams working together to manage the process. This approach allows both teams to leverage their strengths and collaborate to ensure that renewals are managed effectively. Sales teams can focus on identifying upsell and cross-sell opportunities, while customer success teams can focus on ensuring that customers are getting the most value out of their subscriptions.
The team effort approach may be the most effective way to manage renewals, as it leverages the strengths of both teams and ensures that customers are engaged throughout the entire lifecycle of their subscriptions. However, it may also require additional resources and coordination to ensure that both teams are working together effectively.
Determining who should own renewals is a complex issue that requires careful consideration of a company’s unique circumstances. While sales teams, customer success teams, and a team effort approach all have their strengths and weaknesses, the most effective approach will depend on a variety of factors, including the company’s size, industry, and business model. Ultimately, the key to successfully managing renewals is to ensure that customers are engaged throughout the entire lifecycle of their subscriptions, and that both sales and customer success teams are working together effectively to achieve this goal.