Channel Renewals

The simple process of advance warnings and correct calculations is a process tailor-made for automation. This is, after all, a predictable occurrence. Even when you add new users mid-term or cross a price break point. But with renewals, and especially channel renewals, timing is everything in terms of the notifications (to vendor, partner and customer) and the closing of the deal. Managing renewal business provides vendors with a great opportunity to win partner mindshare by providing partners with the information they need, in a timely manner, to win the renewal.

Vendors will have a database of record of all sales, along with which partner delivered these and when each contract is up for renewal. It is often the case that partners do not keep such good records. Smart vendors will ensure they provide these opportunities to their partners and often provide them with multiple renewal options to generate additional revenue streams and ensure retention of the installed base footprint in the market.

“Never assume” is a smart way to manage renewals.

And while engaging in a dialogue to check for the renewal business, you are given the perfect opportunity to upsell or cross sell.

But make sure your rules of engagement specify who is responsible for chasing down these renewals. If your partners expect to receive a margin, then they should be given adequate advance information to schedule those closing calls. But once again – never assume.

Customer churn should not be an inevitability and measuring renewals accurately will enable you to see danger coming if customer retention is slipping. Be that at the product, region, or partner level. These different metrics, measured over time, will also enable you to react in time. For example, offering an incentive to improve renewal percentages.

For successful renewals, dovetail your renewals process by:

• Providing partners with an ongoing view of upcoming renewals via your partner portal.
• Continuously communicating renewal data to partners. Even if a contract expires, offer free entry back on to the cover.
• Clearly measure and report renewal rates both on partner facing tools and internally to account managers to empower these teams to maximize renewal rates and revenue.
• Build associated incentives to pay out on achieving agreed targets. For example, rebates on renewal rates of greater than 80%.
• Channel Sales – arm your PAMs with the necessary renewal data.
• Channel Marketing – build a comprehensive communication plan to customers and partners to galvanize action.

The Channel Mechanics Renewals Engine gives you the ammunition you need to react, respond and reduce churn. Discover more about how our channel program automation platform can drive your channel renewals program.