Which action should be taken when renewing a contract with a customer? (Choose the best answer.)

Question

Options

• AAssume their business needs are the same.
• BPropose only the most important part of the solution.
• CStart discussions after the contract has expired.
• DValidate customer's business needs.

• A
  3% (1)
• B
  8% (3)
• C
  3% (1)
• D
  88% (35)

Explanation

Validating the customer's business needs (D) is correct because business requirements evolve over time - a renewal is an active opportunity to reassess what the customer actually needs now, not what they needed when the original contract was signed. This ensures the renewed agreement remains relevant and valuable.

Why the distractors fail:

• A is wrong because assuming needs stay the same ignores organizational growth, market shifts, or new priorities - a classic sales mistake that leads to churn.
• B is wrong because proposing only part of a solution undersells value and may leave the customer's full needs unaddressed, weakening the renewal.
• C is wrong because starting discussions after expiry creates a gap in service and signals poor account management; renewals should begin well before expiry.

Memory tip: Think of renewal as a re-discovery call, not a rubber stamp. The word "Validate" in option D mirrors the discovery phase of the sales cycle - renewals reset the clock on understanding the customer.

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