Who should own Renewals?

I often get asked, “Who should own Renewals?”

But I wonder whether that is even the right question?

How about this one instead: “What DRIVES Renewals?”

Let’s put on our ‘customer’ hats and do a little reverse engineering.

What would make me sign that renewal?

I wouldn’t hesitate to renew a product that is consistently supporting one of my business priorities.

But how do you know if that’s happening? And more importantly, how does a vendor know whether I PERCEIVE that you are helping my business priorities?

First, you need to make sure you know what my business priorities are, and keeping track of whether there are any changes to them.

To do that, you would have had to show me some kind of proof point after signature to show me that my money was well spent. Before you can deliver ongoing impact, you need to deliver some sort of “first impact”.

To achieve that critical early proof point right after contract signature, you need to make sure the right information made it from the sales cycle to the teams managing the engagement after close. Confidence comes when I see a strong kickoff call where these new team members I’m introduced to show me they already know about my business & my priorities. Those early conversations are more focused on validating details with me, filling in additional color, and defining what that first impact moment will be.

And before all of that, you need to first make sure that I am a customer that has challenges that you can truly solve or business priorities you can really support. And you need to properly set expectations with me on what you can and can’t do, and how quickly.

If you can do all those things well, I’ll happily sign that Renewal form.

At the end of the day it’s not about who owns renewals within your organization.

It’s about whether your company knows what kind of business priorities you can support and what kind of problems you can solve, and has a strong handle on the activities, skills & time it takes to:
✅ Find prospects who match that profile
✅ Convince those prospects that you can impact their business in a way that is worth the money you’re asking them to spend
✅ Identify & deliver on that first proof point
✅ Ensure you are providing that impact ongoing
✅ Know if a customers’ business priorities have changed in a way that affects what you do for them

If you do that, and you do it in a way that is financially responsible in terms of unit economics, you’ll be on a great path.

Why is GTM Exec Turnover so high?

The average tenure for a VP of Sales is ~18-24 months. It’s only slightly longer for a CRO. Those are some depressing numbers.

I know there isn’t just one reason for this, but in my experience, there’s often a strong correlation between companies that struggle to find the “right” sales leader and the overall health of their GTM system.

Which begs the question: Is the problem that the leaders being hired aren’t the right people? Or is it that these leaders are being asked to succeed within a broken GTM system?

It’s hard for any leader to be successful if the system is broken, no matter how good they are.

Here are a few things that I find consistently separate a healthy GTM system from one that isn’t functioning well:

Data-Driven Decision Making
If you want to make informed decisions, you need to prioritize data. “You can’t manage what you don’t measure” (nod to Cassie Young on that). That means tracking the right data accurately to set a solid data foundation and ensuring that leaders are using the right metrics to make strategic decisions and guide the business. Healthy systems don’t rely on gut feelings or intuition—no matter how many years of experience a leader has. And a mountain of data and complex spreadsheets does not mean you are data-driven if you can’t extract the insights needed to understand what’s working and what isn’t.

A Systems Mindset & Integration Across Revenue Functions
Systems are interconnected, and changes in one part of the system can affect other parts—often in unexpected ways. The behavior of the system as a whole results from the interactions of its components, rather than the individual parts in isolation. A great Marketing team, and great Sales team, and great CS team don’t automatically result in a great system. You must design the system so that these teams share goals, integrate their processes, maintain open communication, and have tools and systems that interoperate well.

Repeatable Processes
A healthy system provides predictability. You put something into the front end of the system, and you know what you’ll get at the back end. You monitor the output and shift the inputs or what is happening in the middle as needed. The system will only work this way, however, if you first take the time to learn what actions drive what outcomes, and understand what skills it takes to execute them well. Roles, responsibilities, and workflows are all captured through this process and clearly defined.

If you’ve struggled to find GTM Execs that are the “right fit,” and find yourself replacing Heads of Sales, Marketing, or CS every year or two, consider taking a look at your GTM system before hiring again. Compare it against the key points above.

If you THINK there might be a system issue, may I suggest that we chat before you go through the cost and effort of recruiting another leader who would face the same challenges? Honestly, there is a better (and far less expensive & frustrating!) way. 😀

Let’s Ditch “Sales” & “CS”

Can we set aside the terms “Sales” and “Customer Success” for a moment? These terms come with too much baggage, and it's high time for a fresh perspective.

Misalignment on these definitions is all too common, and often leads to confusion about roles, ownership, and budget priorities—things that ultimately affect your revenue engine.

We assume someone we’re talking to thinks of Sales or CS the same way we do, but there are often differing opinions regarding who owns the account, who runs Renewal or Expansion cycles, and what teams should get more budget.

Instead of assigning these responsibilities based on traditional titles or previous approaches, let your revenue goals and systems dictate the answers.

Let’s start by recognizing our goal, which more often than not is driving revenue at a reasonable cost and achieving profitability.

Some leaders still see Sales as the "Revenue" team and Customer Success as a "Cost Center." But that’s a flawed mindset. Profitability depends on great customer onboarding, support, and delivery of recurring impact—traditionally in the realm of Customer Success.

What if we approached our company strategy differently?

Instead of starting with your Marketing, Sales & CS teams, start with a systems mindset. Consider what your healthy Revenue/GTM System needs first, then structure your teams around that.

Every recurring revenue company has 3 distinct revenue streams:
💲 Net New Revenue (Acquisition)
💲 Retained Revenue (Renewals)
💲 Expansion Revenue from existing accounts

The optimal balance of these depends on many factors. Use a Data Model to determine the right revenue balance for your organization at any given point in time.

Once you know the right balance, ask:
➡ What actions drive each revenue type?
➡ How much time and skill do those actions require?
➡ How much should we invest in those activities?

Now's a good time to consider a key First Principle: "Recurring Revenue is the Result of Recurring Impact."

So how do you create Recurring Impact? By finding, keeping, and growing customers. You need to know what actions allow you to convert the right customers, onboard them successfully, and deliver ongoing value, all at a reasonable cost.

Only after understanding the actions required to do that can you structure your teams. Assign tasks based on skills and bandwidth, and identify any skill gaps or tools needed for success.

Rather than prioritizing one team over another, try prioritizing the health of your GTM System.

Are you ready to ditch the old labels and build a GTM system that drives real, sustainable growth? Let’s talk about what it takes.

4 Key Tips for Healthy GTM Systems

Our world moves FAST. And when you're moving fast it can be easy to skip steps or do things without realizing it.

Consider some common phrases we use without thinking. We talk about "top of the funnel" despite the fact that the funnel is a flawed way to model our recurring revenue business (it literally doesn't capture the "recurring revenue" part at all!). Or we focus on "closing the deal" even though the initial contract is really only the start of the relationship - and not even the part where most of the revenue is generated.

When we say and do things without thinking, there's a chance it may be affecting how you think about your company, your job, or how you consider the roles of other teams.

All too often, especially when a company is scaling, things go off the rails simply because no one was paying attention.

Instead, stay on track by consciously prioritizing a few core things and continually checking in to make sure they stay top of mind.

Attention to these early and often will help you avoid common challenges so you can keep focus on ongoing optimization - not on crisis management.

1. Align Everyone on How You Model Your Business:
If one team is thinking of the business as a funnel and someone else as a circle, chances are a lot of other things may be misaligned. Ensure all teams have the same understanding of the revenue journey that drives your business, and that they understand each part of it.

2. Track. Your. Data.
You can't possibly know what parts of your organization are working and which aren't if you don't measure how prospects and customers move along the model, step by step. Set a clear, reliable source of truth for your data - with a talented RevOps person at the helm - and track everything ongoing so you can catch issues early, and do more of what works.

3. Align on language.
When an AE says "MQL" and a CSM says "MQL, are they defining it the same way? Is one rep using MEDDIC & one using SPIN? What is an "Account"? Is it the same thing as a "Customer"? These may seem like silly questions to ask - but I'm shocked by how often there is misalignment on common terms across a company.

4. Don't Forget - It's a SYSTEM.
We can get so focused on the parts that we forget the whole. Teams should pursue OKRs and goals, but not at the expense of the system. And don't forget the fact that in a system, a small change in one part of it can have consequences - not always intended ones - in other parts.