The Art of Renewals: Maximizing MSP and VAR Growth

When I first launched my first company 18 years ago, renewals were a foreign concept.

Little did I know they’d become the secret sauce to 80% of our profitability and ultimately lead to me selling my company in 2022.

Today, I want to share this often-overlooked but critical growth engine for IT resellers: Renewals.

Let’s dive in.

Why Renewals Are the Unsung Heroes of Your VAR or MSP:

• Predictable Revenue: Contract renewals offer a steady, predictable income stream, stabilizing your business from the downturns which naturally occur.
• Customer Loyalty: They’re a great test of customer satisfaction. A “yes” to renewal is a “yes” to your service and brand.
• Cost-Effectiveness: It’s no secret: retaining a customer is far cheaper than acquiring a new one.  Landing new customers is quite expensive.

Renewals and Upselling: A Symbiotic Relationship:

Many VARs and MSPs miss a huge opportunity to use renewals as part of their upsell, cross-sell and expansion strategy.

Building a system to review assets 180+ days before an end of service or renewal date lets you guide customers and uncover multiple service, refresh, and product opportunities per asset.

• Opportunities in Disguise: Renewal touchpoints are prime upselling times – adding more value, not just products.
• Enhancing Customer Value: Effective upselling during renewals significantly enhances the value your customers get from your services.
• The OEM Go-To Partner: If you’re a {Cisco} rep, who would you prefer? A partner with every renewal on hand, strategically segmented, or a reseller with scattered assets? Be the clear choice.

Remember your customers are looking for you to lead them, not manage them.

The Future of Renewals: Embracing APIs, Automation and Self-Service Customer Portals:

Renewals are growing in importance, yet some resort to hiring more people to manage the complexity.

Technology offers a smarter path.

• APIs: The New Frontier: Leveraging APIs to aggregate customer and OEM data provides a panoramic view of your renewal landscape.
• Self-Service Portals: Empowering customers with self-service options for tasks like decommissioning and renewals adds convenience and control.
• Automation: There are better ways than removing columns and rows for every Cisco CCW or CCW-R quote, and selecting every asset.

Best Practices to Improve Renewal Management for your VAR or MSP:

1. Strategic Customer Engagement:

• Develop a process oriented communication plan that has the ability to flex based on each customer’s unique history and preferences.
• Implement regular check-ins and feedback loops to stay aligned with customer needs and expectations. Set dates and expectations (day 180, day 90, day 30) for engagement milestones.
• Use engagement metrics to refine and adapt your approach continuously.

2. Data-Driven Renewal Management:

• Leverage analytics to track renewal trends, customer behaviors, and success rates.
• Automate renewal reminders and processes to increase efficiency and reduce errors. These can go to your internal staff and customers.
• Regularly train staff on new technologies and OEM updates. Free up your team’s time with automation so they can focus on training.

3. Value-Centric Upselling and Renewal Incentives:

• Identify and act on upselling and cross-selling opportunities that align with customer goals and add real value.
• Offer flexible, customized renewal options that cater to different customer needs and budgets.
• Develop early renewal and loyalty incentive programs to encourage long-term relationships.

4. Robust Toolset for Process Management:

• For Customers: They experience a more streamlined, personalized service, boosting their overall satisfaction.
• For Colleagues: A well-managed renewal process boosts team morale and efficiency, and drives critical dollars to the bottom line.
• For You: Excelling in renewals not only contributes to your company’s success but also cements your position as a strategic thinker and leader.

The Benefit to You and Your Team:

• Invest in an integrated software solution that combines renewals, asset management, quoting, contract management, and reporting.
• Ensure the toolset is scalable and adaptable to accommodate various OEM requirements and future growth.
• Prioritize user-friendly interfaces, automation, and ticketing maintenance capabilities to streamline workflows and enhance team productivity.

Conclusion:

Technology is changing faster than ever, but it still has to be renewed. Mastering the art of renewal is not just a skill, it’s a strategic advantage.

Embrace renewals with the right blend of technology, understanding, and customer focus, and you and your team will see the results.