You’re Building Retention Too Late

Start Retention on Day One

In partnership with

Hey CS Pro,

Most teams wait until renewals are due to think about retention…and by then, it’s already too late.

In this week’s episode, I sat down with CS consultant and future author Parul Bhandari to break down how to build a customer retention program from zero, no matter what stage your company is in.

Whether you’re a founder’s first hire or leading a team of 20, this episode will help you rethink how (and when) to design for retention, and spoiler, it starts long before the contract is signed.

Let’s dive in…

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Start retention before the renewal countdown begins

Parul has seen it over and over. Customer Success gets looped in only once renewals are right around the corner. But by then, you are already playing catch-up.

At an early-stage startup, she was brought in just as their first renewals were due. And there was no program in place. Her first move? “Show me the paper.”

She audited every customer contract, flagged unsustainable deals, and built a structured plan to categorize renewals by risk and expansion opportunity.

But she also made one thing clear. Retention starts at the very beginning.

From the moment a customer signs, Customer Success should be capturing goals, outcomes, and value drivers. Even if it is scrappy. Even if it is just a spreadsheet. Because when that first renewal rolls around, you will already have the story ready to go.

Do not wait for product market fit to act like you have it

Here’s the reality. Tons of startups and even Series B companies still have not nailed their ideal customer profile or product market fit. And that creates churn.

Parul’s approach is simple. Track everything. Use lightweight tools to capture usage, customer goals, and patterns. Push out product market fit surveys. Share insights with product and leadership.

Most importantly, she said something powerful:

“Your CS team might get blamed for churn, but if you have documented product gaps, ICP misalignment, and usage data…you can reframe the conversation.”

Parul Bhandari

That is what real retention programs are built on. Documentation, communication, and proactive collaboration across the entire company.

As you grow, maturity means structure

As your CS team grows beyond a few scrappy CSMs, you need more structure. Here is how Parul breaks it down:

  • Phase 1: Focus on gross retention. Just keep your customers. Track logo retention, not just net revenue retention.

  • Phase 2: Introduce structure. Build health scores tied to usage, outcomes, and risk signals. Teach your team how to have value-based and pricing conversations.

  • Phase 3: Maturity unlocks creativity. Use multi-year contracts. Set expansion guidelines based on health score. Offer additional services as part of the retention strategy.

One insight really stood out. At scale, your most strategic customers will negotiate harder. That is not a bad thing. It is a sign of trust. They are ready to commit long term, but only if you keep evolving with them.

She also made one thing clear. Do not let your renewal strategy sit untouched. Review it every year. Refresh your approach. Make sure it still aligns with your product roadmap and customer maturity.

Takeaways

  1. Retention starts on day one

    The first success plan, the first goal captured, even the first onboarding survey. It all contributes to your future renewal strategy. Do not wait until month ten.

  2. Focus on gross retention before net revenue retention

    Early stage companies love talking about net revenue retention. But if you are not keeping your logos, you do not have a real growth engine. Start by tracking gross retention.

  3. Train your team to talk pricing

    Parul’s top tip? Teach your team how to negotiate. Do not just build a pricing plan. Practice the conversations. Run mock calls. Help CSMs build the confidence to handle real customer scenarios.

That’s it for this week! If you want to hear all of Parul’s tips, check out the full episode on your favorite podcast platform.

Have a listen to the latest podcast:

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That's all for now.

If you have any questions or suggestions, please feel free to contact us.

Cheers to your CS success,

Anika

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