PHASE 8: RENEWALS
Capture more value from your existing base of customers over time.
You can’t always meet your growth goals through new accounts. Creating a renewal strategy enables you to capture more market value. Growing your base business can be essential to making your number, particularly as your business matures. But what is the right way to grow your accounts? Should you position a series of upgrades? Add annual price increases? Both are potentially viable — the answer lies in your product pipeline and the characteristics of your customer base. But you can’t choose to ignore it, since in a market with any level of inflation, maintaining prices is equivalent to a reduction.
1. You have a strategy for growing account revenues over time which includes pricing.
2. You have increased your list prices in the last 3 years.
3. You have raised your renewal prices for current customers in the last 3 years.
4. You have established overall customer price increase justification strategy (cost increases, inflation, match industry, re-evaluate WTP).
5. You have a price determination strategy that is account specific (vs. even spread across all accounts).
6. You track attrition rates following each price increase.
7. You have calculated price elasticity for each product.
8. You communicate the price increase to your customers several months in advance of the transaction.
9. You have a road map for future product improvements and related margin enhancements.
10. You know how much customers are willing to pay for product and feature upgrades.
• Account Strategy Assessment
• Account Revenue Growth Strategy
• Account Pricing Playbook
• List Pricing Definitions
• Price Increase Policies and Guidance
• Communication Plan and Selling Tools