Before you approach your customer for a renewal, you need to have a clear understanding of their current situation, goals, challenges, and satisfaction level with your solution. You can gather this information by conducting regular check-ins, surveys, feedback sessions, and usage reports. By knowing your customer, you can identify the gaps or opportunities where you can offer them more value, and tailor your upselling or cross-selling proposal accordingly.
Whether or not you have implemented a Customer Success Model, its best to start the relationship with a set of shared KPIs. Understanding the specific goals that your customer expects from using your product or service is the best way to begin knowing your customer. A periodic review of clear objectives will make the renewal (and upsell) an expected part of the relationship rather than a complete re-sell each time the renewal comes up.
It's also beneficial to set some of the expectations up front during the sales process so the services can be appropriately introduced later. This gives the team a better opportunity to discuss the additional services.
Upselling or cross-selling during renewals is not about pushing your customer to buy more or spend more, but about showing them how they can achieve more value from your solution. You need to align your upselling or cross-selling offer with the value proposition that your customer cares about, and demonstrate how it can help them improve their outcomes, solve their problems, or meet their needs. You can use case studies, testimonials, or data to back up your claims and show the benefits and ROI of your offer.
I can't agree with this more. It's NOT just about selling your client more services, but instead, about making sure you're aligned with the solution and how it can benefit them.
One of the key factors that can influence the success of your upselling or cross-selling during renewals is the timing and tone of your communication. You need to choose the right moment to bring up your offer, and avoid doing it too early or too late in the renewal process. Ideally, you should start the conversation after you have confirmed the customer's intention to renew, and before you send them the contract or invoice. You also need to use a consultative and respectful tone, and avoid being pushy or aggressive. You want to make your customer feel valued and appreciated, not pressured or manipulated.
You should appreciate that depending on the type of upsell (i.e. new feature vs organic growth of users) that is introduced during the renewal process, this can impact the renewal cycle and timing of the deal. Make sure you plan accordingly as it can add additional steps to the renewal in the form of demos, negotiations, additional approvals, and more paperwork.
The renewal process begins with initial implementation. During implementation, mutually agree on the the KPIs, and the cadence for Operational Reviews and Business Reviews. The Operational Review of the KPIs will let your customer know that you care about them getting the most value from their investment. The Business Review is where you can present the ROI and Value the customer has achieved to funding decision makers, making the Renewal and Upsell conversation a welcomed expectation!
This is another example where it can help to align these expectations from the sales call. For example, as an agency, we offer other services that can help a client achieve results, but they usually come to us about one service and are uncertain about the others. During the initial discussions, we can then set the precedent that in month X we'll assess the value that it can add to their efforts, and in month Y we'll assess again for another service.
Even if you have done your homework and presented a compelling offer, you may still face objections from your customer. To handle them effectively, it's important to acknowledge the objection and empathize with the customer. Ask open-ended questions to understand the root cause of the objection, then provide relevant information or evidence to address it. Finally, confirm that the objection has been resolved and move on to the next step.
Once you have handled the objections and presented your upselling or cross-selling offer, you need to follow up and close the deal. You can use a trial close to test the customer's readiness to buy, such as asking them if they have any questions or concerns, or if they are interested in a demo or a free trial. If they are ready, you can ask for the commitment and send them the contract or invoice. If they are not ready, you can set a clear next step and a deadline, and follow up until you get a response.
The final step of upselling or cross-selling during renewals is to nurture and deliver on your promise. You need to ensure that your customer receives a smooth and seamless transition to the new product or service, and that they are properly onboarded, trained, and supported. You also need to maintain regular communication with your customer, and monitor their usage, satisfaction, and feedback. By nurturing and delivering on your upselling or cross-selling offer, you can increase your customer loyalty, retention, and advocacy.
I'd add that it's also important that you've maintained good relations with the client and have built a good rapport. They are much more likely to listen to your evaluation if you've maintained great communication and transparency with them.