Renewals & Customer Success
The importance of Customer Retention cannot be overstated. The cumulative effect of recurring revenue has a massive impact on a Company’s growth and profitability.
As early as Year 4 or 5 the value of your Renewals business could overtake new business.
Investment in Customer Success and Renewals should be calculated vs the cost of acquiring new customers to replace the churn.
As mentioned in the Top Six RevOps Challenges, Commercial Governance plays a big part here. Steering away from Customers with a poor product fit, who are likely to leave or consume precious Development/Support resource. RevOps often run a ‘Deal Desk’ function to increase visibility of non-standard deals so that the Company can decide whether to invest or walk away.
RevOps should also be ensuring that you can accurately differentiate between net new and cannibalised revenue. This involves being able to track churn at the SKU level; something not always implemented in the CRM by default. Without this you will never be able to track retention accurately and are likely to incur additional, unforeseen sales costs.