3.4 Describe the Renewal Cycle for Software and Services 700-805 Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A renewals manager is new to a portfolio of accounts and needs to understand the renewal cycle for each customer. One customer has a contract that expires in 120 days, and the customer has a history of renewing on time. The renewals manager wants to follow the standard renewal cycle. What should the renewals manager do first?

   • AContact the customer's procurement team to negotiate pricing before any analysis.
   • BReview the customer's contract details and usage history to prepare for the renewal.
   • CSend a renewal proposal immediately to ensure the customer has time to review it.
   • DWait until 30 days before expiration to start the renewal process, as the customer has a history of renewing on time.
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A renewals manager is monitoring a portfolio of accounts. One customer's contract is set to auto-renew in 60 days, but the customer has historically required a formal renewal proposal and approval from their procurement team. The customer's usage has declined slightly over the past quarter. What should the renewals manager do to best manage this renewal?

   • ARely on the auto-renewal clause and do nothing, since the contract will renew automatically.
   • BProactively engage the customer to review the usage decline and discuss whether the current subscription still meets their needs.
   • CSend a renewal proposal for the same scope immediately, without discussing the usage decline.
   • DWait for the auto-renewal to occur and then follow up with the customer to confirm the renewal.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A renewals manager is handling a renewal for a customer who has been using the software for three years. The customer's usage has remained stable, but the customer has expressed interest in a new feature that is available in a higher-tier license. The renewals manager wants to maximize the renewal value. What should the renewals manager do?

   • AConduct a value assessment to quantify the benefit of the new feature and present an upsell proposal.
   • BRenew the current license tier without mentioning the new feature, to keep the renewal simple.
   • CImmediately send a renewal proposal for the higher-tier license without discussing it with the customer.
   • DRecommend non-renewal because the customer's usage is stable and they don't need the new feature.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A customer has renewed their software subscription, but the renewals manager notices that the customer's usage has been declining for the past six months. The renewal was for the same scope. What is the most appropriate follow-up action for the renewals manager?

   • AImmediately propose a downgrade to a lower tier to match the reduced usage.
   • BMonitor the usage closely and schedule a check-in with the customer to discuss their needs and potential adjustments.
   • CDo nothing, since the renewal is complete and the customer has committed for another term.
   • DEscalate the account to the sales team to pursue an upsell to a higher tier.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A renewals manager is working on a renewal for a customer whose contract expires in 45 days. The customer has consistently used the software, but there is no indication of expansion. The renewals manager has completed a usage review and a value assessment. What should the renewals manager do next in the renewal cycle?

   • AWait for the customer to contact the renewals manager about the renewal.
   • BGenerate a renewal proposal for the same scope and present it to the customer.
   • CRecommend non-renewal because there is no expansion opportunity.
   • DImmediately escalate the renewal to the sales team to negotiate a discount.
   Reveal Solution Discussion Select an answer first