Renewals are getting tougher these days. Everything is suspect when businesses cut costs to survive a recession. Sales managers I talk to bemoan the changes to the renewal process this recession has caused: longer negotiations, shorter renewal agreements, reduced ancillary products.
Your current business is at greater risk every day.
Imagine if you could adopt a renewal strategy that can lay the groundwork for explosive growth down the road. Focusing today on a great renewal strategy can have unexpected benefits in creating more future business.
How so? Well, let’s walk through it.
A Great Renewal Strategy Factors These In…
First of all, a solid trust bank will be expended when a renewal negotiation begins. The larger the balance going in, the more likely you will get through a renewal discussion on the positive side. That’s accomplished with a solid cadence of connection to your client. There’s a real need to be focused on the champion and economic buyer within this cadence to build trust with those that are most likely to help you get a strong renewal. And focus on multiple ways of connecting; email ONLY is insufficient.
As sales leaders, establishing a multi-pronged client cadence is immediately transferable to your prospecting. This teaches your team to both hunt and gather creatively.
Secondly, do the math on your ROI for each client. How much are you saving your clients in time, money, and headaches? How much revenue are you assisting them in generating? What other sources of value are you creating? One example would be to connect two clients to work on a joint venture to solve a problem together. If you’re the source, you’re the reason for the increase in value you bring. Solve client problems with other clients.
Both of these behaviors, a trust-building cadence and ROI calculation, create an environment for consistent and fruitful renewals. The real genius of making this part of your sales model is this: Referrals.
80% of people will refer you if you ask them. Having a strong trust bank and clear message of value creation; gives those you ask all the ammunition you need to have a remarkable closing rate on your referrals.
As always, we at Span the Chasm can help you develop a program for this from your current sales process. Reach out to us and preserve your current revenue while laying the groundwork for your future business.