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We tried an experiment with a Mentor and Mentee match within the GrowthQ community. Here’s a sneak peak into the 25 minute Zoom meeting…
Transitioning from traditional sales roles to managing renewals can be a daunting yet enriching experience for sellers. Whether you’re an Enterprise Account Manager like Byron A. Melton or coming from a background in customer success, understanding the nuances of renewals is crucial. Here, Byron was preparing to expand his scope to include not only New and Expand sales, but also Renewals. Given this, he was seeking advice from an experienced Renewals leader to prepare for the transition. During this Mentor Session, Cathy Quero Spiewak, a seasoned customer renewals manager, discussed multiple insights with Byron that are invaluable for making this leap.
Here are the top five lessons sellers should know when transitioning to renewals.
1. Understand the Different Dynamics at Play
Renewals are a unique blend of customer success, account management, and sales. Cathy emphasizes that renewals managers need to fully grasp the contractual obligations while also ensuring that customers continue to see value in the product. Unlike new sales where the focus might be on persuasion and closing deals, renewals require a balanced approach of maintaining an existing relationship and safeguarding the company's revenue objectives.
"Renewals is kind of a Venn diagram of customer success, sales, and account management," Cathy explains.
2. Be the Advocate for Both the Customer and the Company
As a renewals manager, you often find yourself in the delicate position of needing to be both the good and bad cop. Cathy notes that while account executives and customer success managers may focus more on customer satisfaction and new sales, renewals managers often have to make the hard calls.
"I'm the bad guy, but I'm not a bad guy," says Cathy, emphasizing the importance of maintaining a balance. "If you were to sell this right now, I would not be able to secure those discounts you have. Your best bet is for me to keep everything whole."
3. Master the Art of Communication
Navigating renewals effectively involves a lot of clear and precise communication with customers. Whether it's getting customers to notify their existing partners about wanting to change terms or explaining the implications of increased costs, your communication skills are vital.
"I sometimes will hold a renewal quote until we meet to ensure we follow the rules and are aligned," Cathy mentions, explaining how she ensures that customers and partners are aligned well before renewal processes begin.
4. Use Data and Contracts to Your Advantage
Knowledge is power, especially when you’re managing renewals. Cathy spoke about using compound interest calculators and understanding legacy discounts to help customers see the value in multi-year renewals. Understanding the fine print of contracts and the potential penalties for switching or letting a renewal lapse can make the difference between a seamless renewal and a complicated negotiation.
"I have a hard deadline and that's your renewal date. If we pass that, there are consequences," Cathy emphasizes. "And remember, you are not just paying for the same thing; you’re benefiting from continual improvements and updates."
5. Leverage Team Collaboration
While renewals may involve many solo responsibilities, the task requires extensive collaboration with account executives, customer success managers, and partner management teams. A team-based approach ensures that you can rely on subject matter experts for different facets of the account.
“It’s great to play it as a team sport,” Cathy says. "Byron can come in and sweet talk to them after I’ve laid down the law. We make a good cop, bad cop team."
Conclusion
The world of renewals merges the rigor of contract management with the nuances of client relationships and the strategic mind of a salesperson. Taking a leaf from Cathy and Byron's insights, sellers transitioning into renewals must adapt to new challenges and leverage their skills in communication, data analysis, and collaboration to become effective renewal managers. Being prepared for these top five lessons can help smooth out the transition and lead you to success taking on Renewals as part of your role.
✨ It’s Here! GrowthQ's long-awaited Mentor Matching Features are officially LIVE, and we couldn’t be more excited!
This is your chance to:
Find the perfect mentor to guide you on your next career move or current job milestones
Share your expertise as a mentor, helping others succeed while earning money for your time and knowledge.
Whether you’re looking to level up your skills or empower the next generation of sales professionals, GrowthQ makes it easy to connect with the right people.
🔥 Don’t wait—matching is available now! Visit www.growthq.co to get started
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