Go to ranker.com and you can explore who and what are considered the best among some expected (and less expected) categories. While Michael Jordan is inarguably the best basketball player of all time, and it seems Tom Hanks is considered the best male actor of all time, Mercedez-Benz is the best car manufacturer, and Super Mario Brothers is the best video game franchise… you can also find out about the most essential hotel amenities, the very best fountain pen brands, and the best songs about the moon.
But how did those in the coveted number-one ranking get to be where they are? Each category likely has its own, unique criteria. While ranker.com’s crowdsourced methods may or may not be judged historically accurate, they seem to have established themselves as experts in ranking things.
As experts in renewals, iasset.com gets to work with some of the most successful renewals organizations in the world. While we haven’t created a list ranking those top renewals organizations, we have developed the following list of 7 quick facts that can help any renewal business become more successful.
- The earlier in the cycle a renewal quote is closed, the greater the probability that it will be closed at full asking price.
- Without an automated approach, it can take approximately 22 steps to close a renewal via your channel. This includes sending up to 10 emails, quote revisions and updating multiple systems.
- If you only measure Bookings Rate rather than Renewal Rate, you potentially leave opportunities in the install base unaddressed and unexecuted, which can lead to customer churn and missed revenue.
- Tracking your resolution rate (% closed won or lost opportunities to total opportunities) will tell you how well the renewals workload is being managed. A low-resolution rate indicates that you do not have enough staff to address the pipeline (or an automation solution may be needed).
- Typically, low value $ renewals will lapse unless an automated solution is implemented.
- On average, the lifecycle for a Renewal Representative is 26-32 months. At this point, Renewal Representatives tend to burn out on the repetition of the job and look for next-level skill development and contributions to the company.
- Closing renewals still require a human touchpoint with the customer. Make this the focus of your renewals specialists, not quoting or working out who to talk to and when.
While we will leave the top 10 lists to the ranking experts, these 7 facts can help your renewals organization bump up a few notches in the unofficial market rank. A more effective renewals organization can equate to greater revenues, improved customer service, and more productive and satisfied employees.
Give it a try, and let us know how it works in the comments below.
Read more about building a successful renewals organization with: “The Ultimate Renewals Playbook”.