Technology subscriptions have become a staple for companies and organizations across the industry. From software-as-a-service (SaaS) and cloud-based infrastructure to classic maintenance and support, these subscriptions enable businesses to access cutting-edge technology and support their operations effectively.
However, managing these subscriptions can be a complex and time-consuming task. Enter the unsung hero of technology subscriptions–the renewal specialist.
In this blog post, we will discuss the value of the renewal specialist role in managing technology subscriptions and why it is an essential component of a successful subscription management strategy.
The Role of the Renewal Specialist
The renewal specialist serves as a central point of contact for clients, vendors, and internal teams responsible for managing technology subscriptions. They are a specialty sales role that owns the renewal transaction, ensuring that all subscription renewals are processed smoothly and efficiently, enabling businesses to continue leveraging the technology they need to thrive.
The renewal specialist's responsibilities include:
- Analyzing data and assessing value levers to make recommendations for subscription optimization.
- Forecasting subscription renewal performance.
- Tracking subscription expirations and initiating renewal processes.
- Negotiating and securing the best pricing and terms for renewals.
- Coordinating with internal and external stakeholders to ensure timely processing.
- Maintaining accurate records and documentation for compliance and audit purposes.
The Value of the Renewal Specialist
Now that we have a basic understanding of the renewal specialist's responsibilities, let's delve deeper into the broader value they bring to the table in managing technology subscriptions above and beyond the obvious implications of higher renewal rate performance.
Cost Savings
One of the primary benefits of having a dedicated renewal specialist is the cost savings they can generate. According to TSIA research, the renewal specialist role costs less than half of the traditional sales account executive, reducing overall renewal costs. Additionally, the renewal specialist organization is purpose-built to achieve maximum renewal rate performance with systems, tools, processes, and people built for repeatable, prescriptive activities. This achieves a level of transaction processing efficiency that a traditional sales model for bespoke net new sales may not achieve.
Improved Efficiency
The renewal specialist streamlines the renewal process, ensuring that technology subscriptions are managed effectively and without unnecessary delays. This improved efficiency can prevent delayed billing or service interruptions, which can be costly and disruptive to business operations. The cascading effect of freeing up highly capable and high-cost sales executives to focus on net new and complex cross-sell work actually allows companies to grow faster than when they have the sales executives renew pre-existing revenue streams.
Enhanced Vendor Relationships
The renewal specialist, when deployed under a value and outcome selling culture, plays a crucial role in building and maintaining solid relationships with customers. By effectively managing renewals and acting as a helpful liaison between the customer and the vendor, they contribute to fostering long-term, mutually beneficial partnerships.
Compliance and Risk Management
Given the increasingly complex regulatory and data privacy landscape, businesses must ensure that they maintain accurate and up-to-date records of their technology subscriptions. A renewal specialist can help with this by supporting comprehensive documentation for compliance and audit purposes, reducing the risk of non-compliance penalties and potential legal issues.
Proactive Subscription Management
The renewal specialist's proactive approach to subscription management helps businesses stay ahead of the curve. By keeping a close eye on subscription expirations and initiating renewal processes 90 to 120 days in advance, they prevent lapses in service and ensure that businesses always have access to the technology they need to remain competitive.
The renewal specialist plays a critical role in managing technology subscriptions for businesses. By streamlining the renewal process, negotiating favorable terms, maintaining compliance, and fostering vendor relationships, they provide tangible benefits such as cost savings, improved efficiency, and reduced risk.
Questions and Concerns for Renewal Leaders
One critical factor determining renewal performance is the impact of renewal specialists. However, not all renewals are the same, and different market segments require different renewal workflows and business capabilities. Renewal leaders must navigate many questions and nuances to optimize renewal performance.
Some critical questions the renewal leaders should consider are:
- Should renewal specialists be tied to the renewal transaction independent of account team structures? This decision can impact account growth and overall growth. On one hand, separating renewal specialists from account teams can lead to a more focused and efficient renewal process. However, it can also lead to missed opportunities for account growth if renewal specialists are not involved in account planning and strategy.
- Should renewal specialists manage renewals for every account, regardless of size or complexity? While having dedicated renewal specialists can ensure consistent renewal performance, it may not be cost-effective for smaller accounts where digital options exist.
- When should renewal transactions be managed by customer success managers (CSMs) or sales account specialists? CSMs are typically responsible for ensuring customer satisfaction and retention, making them a natural choice for managing renewals. However, sales account specialists may have more expertise in upselling and cross-selling, making them a better fit for managing renewals with upselling or expansion charters and goals.
- Where should renewals live within the organization: sales, customer success, or services? This decision can impact how renewal performance is measured and how resources are allocated. Organizations should evaluate their specific context, customer base, and internal dynamics to determine the most suitable placement for renewals within their organization.
The renewal specialist plays a crucial role in driving profitable revenue growth for businesses by effectively managing technology subscriptions. They streamline the renewal process, negotiate favorable terms, maintain compliance, foster vendor relationships, and provide tangible benefits such as cost savings, improved efficiency, and reduced risk. As the as-a-service business model continues to grow and become more complex, the renewal specialist's role will only become more critical.
By considering these critical questions and concerns, renewal leaders can maximize renewal performance and drive profitable revenue growth for their businesses.
While there are many questions and nuances of renewal performance, renewal leaders can turn to organizations like TSIA to help navigate these challenges and promote high-performance results. TSIA’s customer growth and renewal practice is dedicated to helping technology companies improve their renewal performance through effective business practices and organizational design choices.