stop leaving $$ on the table: CS negotiation levers
Equip your CS team to master renewals & expansions. Key levers for driving value and revenue revealed inside.
April 20, 2025
Every renewal is a negotiation.
Sure, some contracts might auto-renew without a word, but securing durable growth in SaaS means mastering those critical renewal and expansion moments.
Yet many Customer Success teams grapple with this — maybe facing messy internal processes, feeling ill-equipped for commercial talks (even when they excel at demonstrating value), or lacking clear strategies beyond custom, one-off deals.
This friction often leaves profitable expansion revenue, the most cost-effective growth engine, untapped. So, how do the best teams navigate these conversations?
They understand and strategically deploy specific negotiation levers. Knowing these levers, and when to use them, is essential whether you're a CSM, a Renewal Manager, or a Sales rep involved in the post-sale journey. It's about moving beyond simply hoping for retention and actively driving value-based growth…
Revenue begins (or ends) with customer onboarding. Delayed onboarding is lost revenue. OnRamp turns onboarding into a growth lever—creating quicker TTV, early expansion and more renewals—from day one.
CSMs hold unique advantages in these commercial talks. You've built trust. You understand the customer's business, their goals, and critically, the value they've already achieved with your product.
Research shows customers are far more likely to expand when they perceive value. Leveraging that trust and insight is key — framing conversations around partnership and proven ROI feels fundamentally different than a cold pitch.
“You name the price, I name the terms.”
This is one of my business partner’s favorite sayings. And he’s right.
Mastering negotiation means knowing the key levers you have to work with in a contract. The beautiful reality behind negotiation is that, when done correctly, each party is helping the other find solutions that work.
After all, the goal is to lock down an agreement that everyone feels good about.
To that end, here are some of the most basic contractual “levers” to understand and use in your next negotiation:
Offering discounts for multi-year commitments is standard. It provides revenue predictability for you, potential savings for them.
Your Lever: Understand the customer's need for flexibility versus budget predictability. Guide them to the term that makes sense, justifying longer terms with clear value continuity, not just discounts.
Price increases happen. The key is how.
Your Lever: Proactively discuss renewals early, frame increases around added value or market changes, negotiate caps on automatic uplifts, and use benchmark data to ensure fairness. Avoid surprises.
Price increases can happen any time you define them. Starting with an annual price increase and allowing the customer to negotiate the annual increase downward is a great way to create contractual contour. Essentially, you’re creating a lever for your customer to work with.
Annual upfront payments help your cash flow and often come with discounts. Monthly/quarterly helps theirs.
Your Lever: Understand the customer's budget cycle. Offer annual pre-pay as a value option, but use payment flexibility (e.g., quarterly for annual commit) as a potential low-cost concession if needed. The customer gets to choose between cash or price point (“you name the price, I name the terms,” see!?).
This is where value-based expansion thrives.
Your Lever: Don't just pitch features. Use customer usage data and stated goals to demonstrate precisely how moving to a higher tier or adding a specific module solves their next challenge or unlocks their desired outcome. Make it about their success.
Hitting usage caps should feel like a success story, not a penalty.
Your Lever: Monitor usage proactively. Frame the need for more seats or capacity as evidence of their successful adoption and growth, enabled by your platform. Position the upgrade as the next logical step in their journey.
Packaging related products or services can simplify things and increase value.
Your Lever: Look for logical combinations that address a broader customer need. Highlight the integrated value and potential savings compared to à la carte options.
Notice the common thread? Effective CS negotiation leads with value. Prepare diligently — you should know the customer's ROI, their alternatives (BATNA), and your walk-away points. Frame discussions collaboratively. Ask probing questions to understand their real interests. Use the data and trust you have to demonstrate indispensability and make renewal/expansion the logical next step.
Whether it's CS, Sales, or a dedicated Renewals Manager handling the negotiation often depends on the deal's complexity and your team's structure and skills. Ultimately, clear rules of engagement, strong collaboration, and ensuring the person leading the talk is equipped with the right skills and data matter more than the specific title on the org chart.
In the end, mastering key negotiation levers elevates Customer Success. It allows your team to confidently contribute to revenue, strengthening customer relationships because you're actively partnering in their growth and aligning value delivered with value captured. And it secures CS's strategic seat at the table.
Are you strategically using these levers, or just letting renewals and expansions happen to you?
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We’re grateful you choose to read each week.
When you’re ready for more, there are a couple ways we can help:
» Cover Your SaaS is a financial literacy course for go-to-market leaders. Grab your copy here.
» Promote your product and services to over 4,000+ senior SaaS Sales, Marketing, and Customer Success pros by sponsoring our twice-weekly newsletter and podcast.
