3.4 Describe the Renewal Cycle for Software and Services 700-805 Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   In the renewal cycle, which stakeholder is typically responsible for negotiating the commercial terms of the renewal contract?

   • ACustomer success manager
   • BLegal department
   • CSupport personnel
   • DSales team
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2. 17expert · hard

   A customer has renewed their software subscription, but during the renewal process, the renewals manager discovered that the customer's usage has been declining and they may not need the full subscription in the future. The renewals manager wants to maintain a good relationship and ensure future renewals. What is the best follow-up action?

   • ADo nothing, since the renewal is complete and the customer is committed for another term.
   • BEscalate the account to the sales team to pursue an upsell to a higher tier.
   • CSchedule a post-renewal review with the customer to discuss their usage trends and future needs.
   • DImmediately propose a downgrade to a lower tier to match the declining usage.
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A renewals manager is handling a renewal for a customer who has a support contract that includes a certain number of incident hours. The customer has used all their incident hours for the year and has a history of exceeding the hours. The customer is satisfied with the support but is concerned about the cost of additional hours. The renewals manager wants to propose a renewal that addresses the customer's needs. What should the renewals manager do?

   • APropose a renewal with a higher number of incident hours to cover the customer's usage pattern.
   • BOffer a discount on the overage hours for the current year to appease the customer.
   • CRenew the same number of incident hours and let the customer purchase additional hours as needed.
   • DRecommend non-renewal because the customer is using too many support hours.
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5. 19application · medium

   A customer has decided not to renew their software subscription. The renewals manager has confirmed the decision and the contract will lapse. What is the most appropriate follow-up action for the renewals manager?

   • AEscalate the non-renewal to the sales team to pursue legal action for breach of contract.
   • BOffer a steep discount to try to win back the customer at the last minute.
   • CImmediately close the account and remove all customer data from the system.
   • DDocument the reasons for non-renewal and schedule a post-mortem or exit interview with the customer.
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6. 20foundation · easy

   Which sequence correctly represents the typical phases of the renewal cycle for software and services, from initial purchase to renewal decision?

   • APurchase → Renewal Planning → Usage & Value Monitoring → Renewal Decision → Renewal Proposal
   • BPurchase → Renewal Proposal → Usage & Value Monitoring → Renewal Planning → Renewal Decision
   • CPurchase → Usage & Value Monitoring → Renewal Planning → Renewal Proposal → Renewal Decision
   • DRenewal Planning → Purchase → Usage & Value Monitoring → Renewal Proposal → Renewal Decision
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