No-one needs to be told the importance of securing renewals. They are the life-blood of both vendor and reselling partners. However, some vendors fail to realize the leakage and spillage caused to securing renewals by the lack of data, systems and tracking. At both the vendor and partner level.
A vendor will likely have a CRM or PRM that tracks when renewals are due. And will perhaps send the customer a 30, 60, or 90-day reminder. In addition, it should ideally provide partners with details of the renewals due to them from their customers, in the coming quarter and month. This enables the vendor to come at the opportunity from both angles – reminding both the customer and the partner.
“Today we see our Professional Services business is the fastest growing component of the business. Smaller in terms of value but fastest growing. And the way in? The renewal discussions when we come in and discuss options with the client.” APAC NICHE RESELLER
The importance of securing your renewals base, within enterprise clients, needs no explanation. But it is just as important within the SMB sector. This may seem like a lot of work for a relatively small return. But this important base gives both vendor and partner a larger prospect base with shorter sales cycle into which there are opportunities to cross and up-sell. Selling into an installed base is also less expensive in terms of sales and marketing expense.
“We go in to have a conversation about renewals and pick up other business – we are getting some good cross fertilization.” AMER LARGE RESELLER
As a vendor, you should be encouraging that stickiness between partner and customer, with your product or solution at the core of the relationship. Partners, both large and small, will have focused industries, verticals or niches and will have greater knowledge of the needs of the customer. It pays for all concerned to keep that relationship intact. Availability and visibility of detailed data for both the vendor and the partner is an essential piece of the puzzle; linking the customer to the partners and therefore enabling conversations to begin in a timely manner.
Renewals are an opportunity to revisit and rejuvenate conversations with the customer. In addition, they are an opportunity to discuss additional requirements and the services and solutions the partner can offer.