In the customer service industry, contracts are a vital component of everyday business. They secure the livelihood of a company and serve as a playbook for any client manager. However, at some point, those contracts will reach the point of maturity. How you handle that process will dictate if you keep your customer, or if your sales pitch will need some dusting off.

Research shows it can cost five times more to attract a new customer than retain an existing one. In addition, research from Frederick Reichheld of Bain & Company shows increasing customer retention rates by 5% increases profits by 25% to 95%. But how do you ensure a successful renewal?

How to Succeed During Renewal Season

Renewals can be very tricky in that you do not want to be too complacent and assume something is in the bag while simultaneously not being too overbearing by pressuring a current customer. It is critical to find a successful balance.

The success of any office can be measured by how its employees work to effectively service their customers. Here are some suggestions for how you can work through upcoming contract renewals:

• Devise a plan of action that is consistent for everyone. Ensure everyone is reaching out at a similar deadline, so no contract catches you off guard. Whether you are looking to renew an insurance policy or something else like a cable subscription, a little forewarning is suggested for retaining that customer.
• Keep the conversation as fluid as possible. Put yourself in your customer’s shoes. Would you want to spend your time talking about something that wasn’t valuable to you? Any mention of a renewal contract needs to be informative without coming off as too scripted. Having notes handy is recommended, just don’t rely solely on that information.
• Get the proper renewal terms out in the open so there’s no confusion. The last thing you want is for your customer to come back excited about a deal that was never correct in the first place. Discuss contractual terms with your manager ahead of time, so you look well-versed going into renewal talk and then confidently relay those terms back over to the customer.
• Be responsive and receptive to feedback and questions. Obviously your target goal is to work with your customers to ensure they stay on with you for another term. Should they turn to you with any hesitation on their renewal contract, getting back to them promptly and being 100% professional is a must.
• Continue providing superb service to your customer. Once a renewal has been made official, now’s the time to step up your game in terms of providing excellent customer great service. Often those in a customer service environment become lazy with their client relationships once a renewal contract has been reached. After you have the contract in hand, take that as an opportunity to leave no shred of doubt why your customer should stay with you as you continue to provide quality services. This will make future renewal discussions that much easier for you down the road.

Every business handles retention in a different manner. The ultimate key is finding a set of best practices that work and work well with one goal in mind: efficiently and effectively giving your customers exceptional service.