Seller Behavior Analysis
Early Renewals
Context
Renewals are a known strategy for AEs to have a compelling reason to get in touch with a customer. As part of the renewal, AEs have the opportunity to use the renewal as an upsell opportunity by, for example, selling more licenses with an early contract start date that provides a better price for the customer. These renewals with upsell opportunities are called early renewals.
The hypothesis is that a renewal of a contract is a compelling reason to reach out to a customer, and that proposing to renew the contract early provides an upsell/cross-sell opportunity for the AE that has a high success rate.
Global Trends
Analyzing early renewal patterns across three methodologies
There are two ways to measure upsell opportunities linked to renewals. The metrics below show the significant impact of early renewals on the business to date and the efficiency of early renewals.
License Opportunities Linked to Renewal Opportunities
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Licenses Flagged as Opportunity-Type Renewal
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Results When Both Renewal Methods Combined
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Seller Level Comparison
Comparing high performers versus low performers across renewal methods
When comparing high performers versus low performers on early renewals, there is a clear difference between the groups:
License Opportunities Linked to Renewal Opportunities
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Licenses Flagged as Opportunity-Type Renewal
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Results When Both Renewal Methods Combined
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- All tables show a clear uplift in the metrics for the high-performing group showing that the high-performing sellers are more active in utilizing early renewals as part of their pipeline generation
- Finally, when looking at the AE Home usage of the renewal page, we can even see that the lower performers are utilizing this information less than the high performers
Renewals & Contracts Page in AE Home Usage
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Recommendations for AE Recommendations in SEED
Behavior-driven recommendations for SEED learning platform
There are two behaviors that AEs should act on that will help them to be successful with existing customers:
- AEs should be aware of what contracts are ending, what renewals are upcoming, and what the status of the renewals is by using AE Home, the Renewals & Contracts page
- AEs should be in touch with accounts with an upcoming renewal that are eligible for an early renewal
Recommendation Design
Proficiency Level 1 - Monitor renewals and understand the renewal status
Hi <Learner>,
Did you know renewals are a compelling event to contact your customers? Check out this 2-min video from a colleague on how you can use renewals to your advantage.
<Video>
You have <number of renewals> of renewals coming up this year. Access AE Home to review the details
<Button - Access AE Home - Renewals & Contracts>
Proficiency Level 2 - Reach out to a customer with an upcoming renewal
Hi <Learner>,
Renewals are a compelling event to get in touch with your customers and also an opportunity to upsell! Learn from your peers the top 3 best strategies to close an early renewal.
<Video>
You have 3 renewals upcoming in the next 6 months that are a good opportunity
- Renewal 1
- Renewal 2
- Renewal 3
<Get in touch now>
Metrics Recommended for the Data Mart
- Number of upcoming renewals
- Open pipe flagged as early renewals (either opportunity type renewal or linked to renewal IDs)
Data Sources Required
Based on SEED: Action-Based Recommendations