Beyond Retention - How to Drive Expansion Revenue at Renewal Time
David Pinto | Principal Consultant | RenewalsHub
November 2024
For many companies, renewals are viewed simply as a yes/no outcome; either the customer renews, or they churn. But in reality, renewal time is one of the highest-leverage opportunities to deepen customer relationships and grow revenue.
While customer retention is critical, a renewal conversation should never be just about renewing the status quo. It’s the perfect time to introduce expansion opportunities (cross-sell, upsell) that enhance the customer’s experience while increasing your revenue per account.
Using the RenewalsHub Renewals Maturity Model – part of the broader RenewalsHub Renewals Transformation Framework™ – we explore how companies can move beyond retention and methodically transform renewals into strategic growth opportunities. Not sure how mature your current approach is? Start with our free 2-minute Renewals Maturity Self-Assessment to benchmark where you are today.
Why Treating Renewals as a Defensive Play Costs You Growth
Many companies focus exclusively on retention, treating renewals as a defensive measure rather than a growth opportunity. This mindset leads to:
Missed revenue potential: Customers renew at the same level instead of expanding their investment.
Transactional renewal conversations: The renewal process feels like a check-the-box exercise rather than a strategic partnership discussion.
Churn risk when new needs aren’t met: If a customer has evolving business needs but no one discusses how your product can solve them, they may churn for a more comprehensive solution.
Shift from Renewals as a Retention Activity to a Revenue Strategy
Organizations progressing through the RenewalsHub Renewals Maturity Model learn that effective renewal strategies don’t just secure retention - they drive revenue growth by emphasizing customer value and expansion opportunities.
Here are 5 actionable strategies to maximize expansion revenue at renewal time:
1. Lead with Expansion, Not Just Retention
Drive upsell, cross-sell and longer commitments as the default.
Retention is not the finish line - it’s the starting point for expansion. Rather than just aiming for contract renewal, companies should focus on:
Increasing contract value - upsell premium features or additional capabilities
Expanding usage - encourage customers to add more users
Cross-selling complementary products - introduce adjacent solutions that enhance the customer experience
Moving customers to longer-term contracts - drive annual or multi-year commitments for revenue stability
By shifting renewals from a retention conversation to an expansion conversation, companies can increase customer lifetime value (CLV) while strengthening long-term relationships.
2. Start the Expansion Conversation Early
Engage 90–180 days out to shape customer thinking before renewal.
One of the biggest mistakes companies make? Waiting until the last minute to discuss renewal options.
If a renewal conversation starts 30 days before expiration, it’s already too late to introduce new value. The customer is focused only on renewing - or leaving.
SOLUTION: Start engaging customers 90-180 days before renewal to:
Review current business goals and challenges
Identify new needs and expansion opportunities
Demonstrate how your solution can drive additional value
By the time renewal discussions happen, customers should already see how expansion makes sense.
3. Use Data to Spot Growth Signals
Turn usage, adoption and engagement metrics into upsell triggers.
The key to successful expansion at renewal time is understanding what customers need before they even realize it. Use data-driven insights to uncover growth opportunities, including:
Product usage trends – are they hitting usage limits or adopting new features? Offer a higher-tier plan or additional licenses
Feature adoption – are they underutilizing a critical feature? Guide them to unlock more value and upgrade
Support & engagement metrics – have they expressed interest in solving new challenges? Recommend relevant solutions
Business growth signals – has their company expanded? Position your product to scale alongside them.
High-performing renewals teams align closely with customer success to ensure they have real-time visibility into customer health and potential expansion opportunities.
4. Make the Expansion Easy to Say Yes To
Bundle strategically and demonstrate ROI before you ask.
Customers don’t always recognize why an expansion makes sense; it’s up to your team to connect the dots.
Proven Upsell & Expansion Strategies:
Tiered value-based pricing – show how upgrading unlocks additional ROI, efficiencies, or premium support
Volume discounts for multi-seat or multi-year commitments – incentivize long-term expansion to increase contract value
Bundled offerings – combine complementary features into value-driven packages
Proof of value expansion – offer limited-time access to premium features before renewal to demonstrate ROI and unlock upsell potential
Example: If a customer relies on basic analytics, a free trial of advanced reporting tools might lead to an upsell before renewal.
5. Center the Conversation on Value Realized & Future Fit
Don’t just renew the contract—renew the relationship.
At renewal time, the conversation should never just be about the contract - it should be about value.
Shift the focus from: “Your contract is up for renewal” to “Let’s talk about the value you’ve gained and where we can take you next.”
How to reinforce value before renewal:
Show measurable results – "You saved X hours, increased efficiency by Y% and achieved Z outcomes.“
Highlight unused capabilities – "You’re currently using 70% of available features; let’s unlock the rest.“
Reaffirm future alignment – "Next year, your business goals are X, Y, Z—here’s how we can help."
The best renewals conversations feel like strategic planning sessions, not contract negotiations.
Ready to Turn Renewals Into a Scalable Revenue Engine?
At RenewalsHub, we help companies automate renewals, uncover expansion opportunities and grow customer lifetime value.
Our RenewalsHub Renewals Transformation Framework™ - including the Maturity Model, Strategy Lifecycle and Renewals Engine - gives you the structure and execution to turn retention moments into growth milestones.