Get over yourself Customer Success and own renewals

The idea that you will compromise trust by owning renewals is BS and needs to stop

I know firsthand the fear that comes with owning renewals as a Customer Success leader. I was right there with you. It can be intimidating to have a dollar target hanging over your head and to negotiate with customers who you've built strong relationships with. However, the reality is that Customer Success should own renewals, and the fear that CS leaders have is not based on trust, but rather on their own insecurities.

At its core, Customer Success is about the inherent trust that your customers have in your company and the value that they are achieving. There is a common misconception that owning renewals can compromise the trust between you and your clients. This is a cop-out that CS leaders use that are scared to change. I know as I had this belief for several years without even realizing it. It took me some time, but I knew I needed to change.

Renewals are a natural part of Customer Success - if a customer is successfully achieving their goals with your product and achieving value and a trusted relationship has been established, the renewal process should be a natural extension that can be handled by the CS team. By owning renewals, Customer Success leaders can ensure that their customers are getting the support they need to succeed and can drive revenue growth for their company.

I was scared just like you

But how can CS leaders overcome their fear of owning renewals? The first step is to acknowledge that this fear is based on a lack of your commercial skills. Many CS leaders have never been involved in sales or negotiations, and the idea of having a revenue target can be daunting. However, by developing these skills, CS leaders can become more effective at managing renewals and can enhance trust with their customers, rather than diminish it.

So how can CS leaders improve their commercial skills? I was right there along with many of you. The first step is to educate yourselves. There are countless resources available on negotiation, sales, and revenue management, and CS leaders should take the time to read and learn from these sources. I highly recommend Chris Voss’ book Never Split the Difference as the first book you should read.

Additionally, CS leaders should seek out advice and guidance from their Sales team, other revenue-focused colleagues and other CS leaders in the amazing CS community that exists. I’ve been blessed to have been surrounded by many phenominal Sales leaders over the years including my CRO who’ve helped me refine my skills. By learning from others, CS leaders can develop their own approach to negotiation and renewal management that is aligned with their company's values and culture.

Another important aspect of developing commercial skills is experimentation. CS leaders should be willing to try new approaches and tactics, especially in today's rapidly changing business environment. The COVID-19 pandemic has forced many businesses to pivot and adapt, and CS leaders should be no exception. By experimenting with new approaches, CS leaders can find what works best for their customers and their business.

Finally, CS leaders should share their knowledge and experience with their CS team members. By coaching their managers and team members on negotiation tactics and approaches, CS leaders can ensure that their entire organization is aligned on the best way to manage renewals. Additionally, by explaining their thinking and reasoning behind their solutions, CS leaders can build trust and buy-in from their team.

You may also decide that you need to hire a dedicated leader within your CS team to handle the commercial aspects of renewals and that’s fine. However, your team will come to you when there are escalations so you won’t be able to avoid the need to improve your abilities in this area.

Coming out of my own fear of owning renewals, I've developed my own approach as an empathetic negotiator. I prioritize the balance between what the client is asking for and what is best for our business in the long run. By developing my commercial skills, I've become a more effective Customer Success leader, and have enhanced trust with our customers, our leadership team, and my own department.

In conclusion, CS leaders need to get over their own fears and embrace the reality that Customer Success should own renewals. By developing their commercial skills, CS leaders can become more effective at managing renewals, and can drive revenue growth for their company. Owning renewals is part of the wave of Customer Success 2.0, and CS leaders who don't evolve will fade away.

Hear are some tears for your fears: