Combing upgrade deals with existing renewal deals?

[LDunne]

Hi all,

We're a SaaS company so recurring revenue is what we deal with.

When a new customer closes, we have a renewal deal for next year automatically created. Let's say this customer wants to expand their licenses, how would we add this uplift in revenue to our renewal deal, automatically?

Currently we're creating a separate deal for the upgrade, which I think seems fair. The struggle is combining the deals so the renewal £ amount is up-to-date.

Thank you!

[Jonno_Price · Accepted solution]

Hi @LDunne ,

Perhaps it would be easier to update the original deal value at the time of renewal instead of creating a new and seperate "Upgrade deal". 

A solution could be to add a new stage to the pipeline where the original deal resides (also with Closed Won status).. eg. "Renewal Deals with Upsell" 

So instead of creating a seperate deal for upgrade - you find the original deal, move it to this new Closed Won stage and add the revenue uplift and any required notes / details. 

Not sure if that works?

[Olivier_novable]

I'm having the same question, after seeing this video, I thought I'd create a second sales pipeline for the renewals, but I'm puzzle as how to manage the upgrades (and potential downgrades)

[Josh · Accepted solution]

Hi @LDunne, 

I typically advise creating the new deal as you explained. I would have the new deal contain the total amount and only calculate that MRR for the year, not the prior year. You might want to include contract start date and end date.

As far as upgrades, I like to use the ticket pipeline to track this. 

• 90 days before renewal (or whatever makes sense to you) create a new ticket in a ticket pipeline (customer success) and assign to the CS rep
• As the CS rep explores the possibility of upgrades they would check the appropriate boxes on the ticket
• After confirming renewal status, it automatically creates the new deal including whatever subscription changes are taking place

Obviously, this process works best when there is a customer service rep/account rep involved. If the upgrades are completely touchless, you'd need a different approach. 

Hopefully this gets you moving in the right direction!

Thanks for the ping @TiphaineCuisset! 

[Jonno_Price · Accepted solution]

Hi @LDunne ,

Perhaps it would be easier to update the original deal value at the time of renewal instead of creating a new and seperate "Upgrade deal". 

A solution could be to add a new stage to the pipeline where the original deal resides (also with Closed Won status).. eg. "Renewal Deals with Upsell" 

So instead of creating a seperate deal for upgrade - you find the original deal, move it to this new Closed Won stage and add the revenue uplift and any required notes / details. 

Not sure if that works?

[TiphaineCuisset]

Hi @LDunne 

Thank you for reaching out.

I want to tag some of our experts on this - @Josh @Jonno_Price @TrujayJay do you have any thought for  @LDunne on this? 

Thank you!

Best, 

Tiphaine