Renewals Revenue Can Help Build ROI
Updated: May 6, 2021
Why Renewals Can Help Build and Make a Difference to your ROI
Contract and warranty renewals are a sure fire, got to happen, business critical type of regular event. No matter what the regularity of the renewal you can be sure any product or service has a renewal point at which your customer can choose to remain with you or go to a competitor. The bottom line is that renewals revenue can help build ROI.
Ask yourself these questions:
Have you got visibility of the renewal dates for your current contracts and warranties?
Could you be missing out on uncomplicated revenue by neglecting to follow up and nurture these accounts?
It’s Time to Capitalise on Contract and Warranty Renewals
Contract and warranty renewals should be bread and butter. Happy customers stay loyal and only tend to look elsewhere if they feel unloved, unappreciated or they get a better offer. If your customer service exceeds expectations, then renewals should be a formality. Unfortunately, this sure-fire revenue is often overlooked due to the amount of effort versus reward.
Renewals might be considered a formality, but they are often neglected as they are not generally big-ticket items that bring in high ROI or earn good commission. Furthermore, sales teams can be easily distracted, or directed, away from such relatively small beer revenue by the bright shiny lights of new, high value business. However, the revenue such renewals can bring could be vital in hitting target and delivering on budget. it’s vital to recognise that renewals revenue can help build ROI
Do you have the resource to chase such renewals and ensure you don’t miss out on this income?
Many organisations just don’t have the resources to focus on renewals business. Sales teams place their focus on new logo business and disregard this low hanging fruit. If this is a familiar scenario, you could consider outsourcing your renewals work to an agency that can do the chasing on your behalf.
The benefits of this are many, primarily:
Freeing up your sales team to focus solely on strategic accounts
Ensuring continuity in customer contact
Providing a lower cost model
Delivering an opportunity to up or cross sell
Maintaining existing customer loyalty
Preventing drift to your competitors
Retaining product awareness within the marketplace
Preserving integrity and providing excellent customer service
A team of expert telemarketeers will use their IT knowledge to engage people in conversation and dig a little deeper. They will uncover where there are sales opportunities that you should be involved with. The right agency will have the IT expertise to help grow your business. A double whammy. A win-win scenario. All for one little phone call.
The salient lesson is “don’t leave income on the table”. The revenue is there to be had, and if you don’t get it you can be sure you competitors will. Chase the renewals, add profit to your bottom line and help to stop the competition penetrating your customer base.