Renewals during COVID

Jeff Breunsbach
Jeff Breunsbach HLAdmin, Member Posts: 277 Gain Grow Retain Staff
Third Anniversary 100 Comments Photogenic GGR Blogger 2022
edited July 2020 in Customer Success Leadership Community

For mid-term contracts, 6+ months away, hold off on making any contract changes right now.

If customer needs flexibility on an upcoming payment, consider moving from annual --> semi-annual, quarterly or monthly payments for a period of time.

For near-term renewals, provide a 15-month renewal and flexibility on next payment. Drawback is that this could appear to cause a drop in ARR (revenue recognition over 15 months instead of 12). Track that as a separate bucket from downsells or cancels.

Add a triage process to validate needs (vs. wants / opportunism). Doing this custom for each customer that asks is going to get time-consuming and painful.

In general, seems like folks are also avoiding blanket discounts.

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Comments

  • Jay Nathan
    Jay Nathan HLAdmin, Member Posts: 108 Gain Grow Retain Staff
    Third Anniversary 10 Comments Photogenic 5 Insightfuls
    edited April 2020

    Agree with avoiding blanket discounts. We are prioritizing customers with upcoming payments who have lost significant portions of revenue. 

  • Sheryl Hawk
    Sheryl Hawk Member Posts: 12 Contributor
    First Anniversary
    edited April 2020

    For renewals that are in the next 6 months look to see if any can be secured early. You might offer access to a module/feature that you normally charge. While this may result in some churn, you have removed future risk and created a potential future upsell.

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