Which action should be taken when renewing a contract with a customer?

Question

Options

• AStart discussions once the contract has expired
• BPropose only the most important part of the solution
• CValidate customers business needs.
• DDo not offer any financing solutions.

• A
  3% (1)
• B
  3% (1)
• C
  84% (31)
• D
  11% (4)

Explanation

Validating the customer's business needs (C) is correct because contract renewal is not merely administrative - it's a strategic opportunity to reassess whether the current solution still fits the customer's evolving goals, ensuring the relationship remains mutually valuable and reducing churn risk.

Why the distractors are wrong:

• A is wrong because waiting until after expiration creates urgency, risk of losing the customer, and leaves no time for meaningful negotiation - renewals should begin well before expiry.
• B is wrong because limiting the proposal to only one part of the solution misses the opportunity to demonstrate full value and may leave the customer underserved.
• D is wrong because financing options can be a key enabler for the customer to commit to a renewal or upgrade - removing them unnecessarily limits the deal.

Memory tip: Think of renewal as a re-discovery conversation, not a rubber stamp. The word "Validate" in option C signals the consultative approach - always lead with the customer's needs, not your product or terms.

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