3.4 Describe the Renewal Cycle for Software and Services 700-805 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which stakeholder in the renewal cycle is primarily responsible for understanding the customer's technical needs and ensuring the product continues to meet them?

   • ASales team
   • BSupport personnel
   • CCustomer
   • DCustomer success manager
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2. 2application · medium

   A renewals manager is reviewing a customer account whose software subscription expires in 90 days. The customer's usage data shows a steady increase in user count over the past year, and the customer's IT director has mentioned a new compliance initiative that will require additional licenses. The renewals manager wants to initiate the renewal cycle at the most appropriate time. What should the renewals manager do first?

   • AContact the customer's procurement team to confirm the contract expiration date before any other action.
   • BWait until 30 days before expiration to start discussions, as that is when the customer is most likely to make a decision.
   • CImmediately generate a renewal proposal for the same number of licenses, since the customer is likely to renew based on increased usage.
   • DBegin the renewal cycle now by engaging the customer to review usage trends and discuss the upcoming compliance needs.
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4. 3application · medium

   A renewals manager is monitoring a customer account that has a subscription with a usage-based pricing model. The customer's usage has been steadily increasing and is expected to exceed the current contract's included capacity within the next month. The contract does not auto-renew. What should the renewals manager do to initiate the renewal process?

   • AWait until the contract expires and then discuss a new contract with the customer.
   • BSend a renewal proposal for a higher capacity without discussing it with the customer first.
   • CAutomatically renew the contract at the same capacity since the customer is using more.
   • DProactively contact the customer to discuss the upcoming usage milestone and explore renewal or expansion options.
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5. 4foundation · easy

   Which of the following is a possible outcome of the renewal cycle?

   • AProduct launch
   • BEmployee training
   • CNetwork upgrade
   • DRenewal
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6. 5application · medium

   A renewals manager is coordinating a renewal for a customer that involves multiple product lines. The customer's IT team is the primary user, but the finance team will approve the budget. The renewals manager needs to ensure a smooth renewal process. Which stakeholders should the renewals manager involve in the renewal cycle?

   • AThe customer's legal team, to handle the contract renewal without involving other stakeholders.
   • BBoth the IT and finance teams, to gather usage insights and secure budget approval.
   • COnly the finance team, since they control the budget and can approve the renewal.
   • DOnly the IT team, since they are the primary users and can make the renewal decision.
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