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Hey {{first_name | CS Pro}},
There is one conversation in customer success that almost nobody wants to have, and you already know the one.
It's the one where you tell your customer their price is going up, so most of us delay it, bury the number in the third line of an email, and apologize before the customer has said a word.
Then we act shocked when a renewal that used to be a formality turns into a fight.
Here's the thing though, the price increase is not what breaks the relationship, the way you deliver it is.
This week on the podcast I broke down the five mistakes that cost CSMs trust at renewal, the five step method I use to deliver a higher number without flinching, and the story of the six figure account I nearly lost doing it all wrong.
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The price is not what breaks the relationship
Netflix, Spotify, your gym, your coffee app, all up this year. Notice what makes you stay, because it isn't price. Watched three shows last month and loved them? You stay. Haven't opened the app in six weeks? You cancel. Same price, different decision, and the only thing that changed is perceived value.
The B2B data says the same.
Customers acquired with deep discounts, think more than 40% off, churn at two to three times the rate of full price customers, and companies with strong value alignment see up to 30% lower churn.
Discounting doesn't buy loyalty, it buys a customer more likely to leave.
Five mistakes I keep seeing, and yes, I made all of them:
Leading with the number and apologizing, which tells them even you don't think it's worth it.
Dropping it at the 11th hour, so it isn't an increase, it's a surprise.
Showing up with no outcomes tracked, asking them to pay more on faith.
Anchoring the new price against the old price, a math argument you cannot win.
Caving the moment they push back, which teaches them your price is fake.
The FRAME method
F is for frame the value first. Never open with the number. Open with what they achieved since the last renewal, the hours saved, the goals hit, the results their leadership talked about. The number then lands on proof, not an empty table.
R is for reveal early, ideally a full quarter out. The same news delivered early feels like a partner being straight with them, not something done to them.
A is for anchor with context. Anchor against the value they're receiving and the cost of leaving: time lost, risk, starting over with someone new. You decide the comparison they make.
M is for meet the objection. When they say it's too expensive, get curious instead of folding. Ask whether it's a budget issue, a timing issue, or a value issue, because those are three different problems.
E is for earn the yes. Tie the new investment to what's coming next, their goals for next year, the roadmap, the expansion. Do the first four properly and the yes isn't something you extract, it's the natural next step.
Messenger or partner??
Early in my career I had a six figure enterprise account and a double digit increase to deliver, and I made every mistake on that list. I sat on it, led with the number, apologized, and when procurement pushed back I started negotiating against myself.
My manager said something I've never forgotten. You walked in as a messenger when you needed to walk in as a partner. A messenger delivers a number and waits to get yelled at. A partner shows up with the whole story.
So I rebuilt it. Value first, anchored against the cost of walking away, and when the objection came I asked questions instead of flinching. It was never about money. They needed to justify it to their CFO, so I built the business case. They renewed at the new price and expanded four months later.
Your customer can handle the bumps. What they can't handle is silence from the cockpit.
This week's challenge
Pick one account with a renewal in the next two quarters. Open a blank doc and write down every outcome it achieved with you this year: the numbers, the time saved, the goals you hit together.
If you can't fill the page, that isn't a pricing problem. It's a value tracking problem, and now you know where the real work is.
Want the exact scripts for the toughest pushback? Grab my objection handling guidebook. And if your whole team freezes at "the price is too high", that's exactly what my objection handling and negotiation workshop is for - thecustomersuccesspro.com/team-event.
Have a listen on Spotify, Apple Podcasts, or YouTube and tell me how your next price conversation goes.
I hope you enjoyed this week’s newsletter.
If you have any questions or suggestions, please feel free to contact us.
Cheers to your CS success,
Anika
