Businesses are finding it difficult to obtain contract renewals as the new year gets underway. A business’s ability to succeed often depends on contract renewals. Selling to a new customer is harder than keeping an existing customer and upselling to them. Customer retention is key, and luckily there are various tactics and strategies that help increase reliable renewals.
According to research, the chances of selling to an existing customer is 60–70%, compared to 5-20% for a new prospective customer. In essence, acquiring a new customer might cost up to seven times more than keeping an existing one.
Four essential guidelines for obtaining contract renewals
- Companies need to think about the quality of their printed contracts and decide whether a digital contract would be more effective.
- When renewing a contract, it is advisable not to renew a contract based on consent alone. Consent can only get you so far. A closed loop process must be utilised when a contract is being renewed. Intent may be established with digital signatures through a reliable chain of custody, which effectively prevents modification or rejection after signing.
- The nature of the contract in question will have a significant impact on the success of contract renewals. Contracts frequently come under close examination in marketplaces with strict regulations. A non-negotiable condition has the capacity to demonstrate both the integrity of the contract and the integrity of the signatures linked to that contract. This frequently turns into a headache, but a digital approach makes it simple to clear up.
- A digital trail might be used to satisfy the need of compliance evidence. The beauty of a valid digitally signed contract is that it becomes a concrete piece of evidence that may at any point demonstrate its own integrity. In essence, this is what a PDF is good for. It takes on an unchangeable format and becomes proof that can and will speak for itself. E-signatures are a useful next step in the digitization of contracts that allows for simple storage and retention of contracts for the required period.
In conclusion, companies shouldn’t be hesitant to enter into contracts that enforce renewals or to demonstrate the contracting parties intent along the process. “Good fences make good neighbours. A good contract makes sure everyone stays friends throughout the process.”
Sourced from: bizcommunity.com