The cost of acquiring new customers is said to be as much as ten times the cost of retaining existing customers.
And that’s why customer renewal management for your products or services is so important. While a lot of sales and marketing is focused on generating new leads, renewal management is arguably more important, since it’s low cost but high value and offers stability.
Whether you run cleaning contracts for the office buildings in your city or provide outsourced IT support to businesses across the state or any other similar contracts, if you can renew them smoothly and efficiently, you will keep these customers long term. Your renewal management team therefore must be in control of this process and avoid any errors.
But in many organizations, the renewal management process for business contracts continues to be entirely manual, or at best, only part-automated. As a result, ensuring renewals happen on time is a labor-intensive and tedious job.
So, is it time you reassessed your renewal management process?
Let’s look at six essential reasons you need to automate renewal management by using workflow automation software:
Perhaps the most obvious reason to automate renewal management is that it eliminates the possibility of ever forgetting to renew a customer account.
Each time you add a new customer to your CRM, you can trigger a workflow which will automatically send email reminders to your customer when their contract is coming to an end and asking them if they are happy to renew the contract. You can also set reminders for your renewals team, containing information about the customer account.
When your process for renewal management is manual, your renewals team is required to search your CRM for information about the customer, look back through their inbox to find emails about their special requests, and maybe even schedule a meeting with the original sales person who struck the deal.
This is time-consuming, not to mention confusing.
By automating the process, however, you can draw all the relevant information from the client account right into a single interface where the renewals manager can get an overview of any problems the customer has had over time, or review information about the original deal and requests they made. This allows you to offer a more personalized service.
Customer renewals are an important opportunity to offer the customer additional services and deals. However, if the process is done manually, the renewals team may simply not have the time to offer personalized deals.
By contrast, an automated process can send the customer recommendations and suggestions via email at the point of confirming their continued payments. They could be sent a form via email containing a list of additional services, including discounted prices for existing customers, where they can select additional services they might want.
If your renewal management process is automated, you get back more time to offer a personalized experience for high-value accounts. Your renewal management team receives all the information they need about the customer account, the value of the deal, and they also receive reminder emails to chase up the original sales rep to discuss the details.
By automating the renewal management process, you also give yourself ample time to review your existing accounts. This gives you time to discuss internally whether the deal is offering enough value for the business, or if an original discount you agreed on is now hurting your profit margins.
By automating the renewal management process, you also can separate out your customers at the renewal stage. Rather than exerting the same amount of energy across renewals for all your customers, your low-value clients can simply receive an automated email asking if they want to continue paying their subscription.
On the other hand, for high-value customers, you can offer the ‘white glove’ treatment, giving them more attention.
In most organizations, renewal management teams are under constant pressure to make sure all subscriptions are being paid and existing customers receive their reminder emails on the right date. This means you have far less time for focusing special attention on high-value customers, and it also means mistakes are more likely to happen.
By automating the renewal management process, the greatest benefit is that you immediately win back hours of time. This allows you to think more strategically, developing your offerings and services for different customers and providing a better customer experience overall.