Hi, Markus here. Welcome to a new episode of the Customer-Value-Led-Growth Newsletter.
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The same but different
Most CSMs think negotiating a renewal is just part of the job. That’s how it’s supposed to be. It’s not. It’s another symptom of the CSM identity crisis.
Somewhere in the past 10+ years, the profession decided that defending your value at the very last minute. That pushing back on renewals and justifying the price was what renewals look like.
Nobody questions it because it’s what everybody does. And what everybody does can’t be wrong, can it? But it is.
In today’s episode, you’ll learn the difference between a renewal negotiator and a renewal architect that turns them into a formality.
Like Night and Day
Let’s compare two CSMs with the same product, contract size, and customer type.
The first CSM, the negotiator, has been made to believe that the renewal is an event. Where you send a reminder and an invitation, and everything else happens in a single conversation. 11 months of work compressed into 60 minutes.
Typical characteristics
❌ Measuring usage, adoption, and customer sentiment
❌ Missing risks if they are underneath the surface
❌ Treating every QBR as a status update, not a performance evaluation
❌ Building no evidence trail until the contract is already due
❌ Ignoring the stakeholders who make the actual decisions
By the time the renewal call happens, there's no track record to point to. Just a relationship and a hope that it's enough. That's why it turns into a negotiation.
The second CSM, the architect, has been taught that the renewal is an outcome. The natural results of delivering and demonstrating value over the past 11 months. By the time the renewal meeting is up, there’s nothing left to discuss. It’s a mere formality.
This is what they do differently
✅ Building the value story (before vs after) all year
✅ Treating every QBR as an opportunity to demonstrate value
✅ Catching risks before customers know they have a problem
✅ Documenting their work to build attributable evidence
✅ Reporting on ROI to key stakeholders who never show up in a QBR
By the time of the renewal meeting, the decision has already been made.
Gap Analysis
This has nothing to do with working harder. On the contrary, the first CSM is likely the busiest person in the company. Back-to-back calls. Inbox at zero by 6 pm. Every fire is put out the same day it started.
By any normal measure, they are doing the job. So if it's not effort, what is it? It’s not years of experience. It’s not even a difference in skill. It’s a different mindset. And the renewal is just one part of the job where it becomes evident.
The first CSM has a service mindset. Something becomes their job when it’s asked of them. That means the renewal does not become a task before the renewal date comes up. Until then, the priorities are lying somewhere else.
The second CSM has a business mindset. They don’t wait to be asked. They own the outcome, not the task. So the renewal is their job since day one. The calendar does not assign it to them in month 11. It just makes it visible to everyone else.
That's the entire gap. Customer renewals don’t reward those who work the hardest in the week before the meeting. It rewards those who have been working toward it since day 1.
Are you a negotiator or an architect?