Your chief renewal officer maximizes renewal of recurring revenues to ensure the impact is positive, not negative, to overall company performance. Learn more: www.tsia.com

1. www.tsia.com
3 Reasons Why You Need
a Chief Renewal Officer
© Technology Services Industry Association

2. www.tsia.com
Reason #1
Subscription annual contract values have
a material impact on company performance.
A Chief Renewal Officer
will ensure the renewal of
recurring revenues has a
positive impact on overall
company performance.

3. www.tsia.com
Technology
Subscription
Annuity
Services
Many pure play cloud companies are
considered “Future Value Aggregators.”
They are focused on gaining
technology subscription market share.
Their revenue mix is almost exclusively
recurring revenues.
For pure play cloud companies, 90+% of company
revenues are recurring revenues.
FUTURE VALUE
AGGREGATOR
REVENUE
MIX
This necessitates a strong focus on renewals.
90%
10%

4. www.tsia.com
Of total hybrid company
revenues are represented
as technology subscription
revenue.
4
Technology subscription revenues are now material
for hybrid companies too.
10%

5. www.tsia.com
$100M$1B
$200M$2b
$2B$20B
5
The subscription businesses of hybrid companies
are as large as the total revenue of many pure play
cloud companies.
TOTAL REVENUE SUBSCRIPTION REVENUE

6. www.tsia.com
Your chief renewal officer maximizes
renewal of recurring revenues to ensure
the impact is positive, not negative,
to overall company performance.
6

7. www.tsia.com
Reason #2
It is critical to identify who is responsible
for the commercial relationship for
each and every renewal.
A Chief Renewal Officer
will design the go-to-market
strategy across multiple
functions to optimize the
renewal coverage model.

8. www.tsia.com
Land Adopt Expand Renew
Maximize
net new sales
Lead the commercial
transaction to renew
the relationship
Unlock value for
existing customers
Grow revenue with
existing customers
Many people can be influencers, but the person
responsible for securing payment for the renewal
is responsible for the commercial relationship.
8

9. www.tsia.com
Renewal coverage models are messy and require
objectivity to apply the right resource at the right time.
Here is an example of 5 different renewal models in play.
6%
13%
13%
30%
38%
Customer Success Led
Channel Partner Led
Outsourced Renewal Specialist Led
In-house Renewal Specialist Led
Account Executive Led
% OF COMPANIES DEPLOYING EACH MODEL
9

10. www.tsia.com 10
• Well-covered with account executives, renewal specialists,
and customer success managers.
• Commonly covered with renewal specialists, who wear both hats
of renewal and adoption, but not doing enough on adoption.
• Often lacking customer success managers.
• Opportunity for trigger-based outreach.
• Apply frictionless (tech touch) renewal capabilities.
• Determine the role of channel partners.
Renewal coverage gaps vary by account size,
with small to medium-size accounts often underserved.
Large Accounts
Medium Accounts
Small Accounts

11. Renewal
Specialist
Customer
Success
Mktg +
Automation
Assign the commercial responsibility for
the renewal to the lowest cost resource
…and adapt as situations change.
Account
Executive

12. www.tsia.com
Reason #3
Renewal executive leadership is
required to plug the leaky bucket, leading
to revenue growth from existing customers.
A Chief Renewal Officer
will be responsible for
optimizing your retention
and expansion rates with
existing customers.

13. www.tsia.com
Given that we lose a certain number of
customers each year, the natural tendency
for recurring revenues is flat to declining.
But they don’t have to be.
13

14. www.tsia.com 14
Starting Annual
Contract Value
Churn Downsell Retention
Retention Rate = x%
Recurring Revenue Waterfall

15. www.tsia.com 15
Optimizing retention and expansion can contribute
to overall company growth and profitability.
Starting Annual
Contract Value
Churn Downsell Retention Upsell Cross
Sell
End of Year
Revenue
119%
to
134%
Retention Rate = x% Expansion Rate = x%
Pacesetter
Performance

16. www.tsia.com
Are your renewals charter and funding
model keeping up with the times?
16

17. www.tsia.com 17
OLD RENEWAL CHARTER NEW RENEWAL CHARTER
> Ensure customers are engaged
throughout contract period
> Secure payments
> Upsell and X-Sell
> Secure payments
> Upsell
OLD RENEWAL FUNDING MODEL NEW RENEWAL FUNDING MODEL
3.6% of maintenance &
support revenue
6% of subscription revenue
Expanded renewal charter requires a deeper investment.

18. www.tsia.com
What’s Next? The Chief Renewal Officer Charter
18
Establish clear accountability for the commercial relationship for
every renewal.
Ensure all compensation models are appropriately weighted
with renewal incentives.
Document the expected customer engagement process and
inspect what you expect.
Lead and manage the global Renewal Specialist and
Renewal Operations teams across all subscription renewals.
1
2
3
4

19. www.tsia.com
www.tsia.com
© Technology Services Industry Association
Are You Ready To Optimize
Your Renewal Rate?
Talk with us about your recurring revenue
SOURCES: TSIA SRG Cloud Renewal Benchmark Study, Q1 2018; TSIA SRG Benchmark Studies, Q1 2018;
Technology-as-a-Service Playbook; and TSIA Research Report: "Renewal Engagement Models for XaaS”.