Latest / Sales Leadership with Fexingo: Quota Carriers, Sales Managers, and Revenue Teams / How Top Reps Turn a Reference Call into a Renewal
Transcript
- Lucas: You know, Luna, I was looking at some renewal data this morning, and it struck me how often we treat reference calls as a new-business tool. But the reps who are really good at renewals — they use them differently. Luna: How so? I mean, a reference call is a reference call, right? You get a happy customer to talk to a prospect. Lucas: That's the default. But the best reps flip it — they turn the reference call into a renewal instrument. They're not just using the customer to close new logos; they're using the call to deepen the relationship and lock in the renewal. Luna: Interesting. So what does that look like in practice? Lucas: Well, before we dive in, I want to mention something. If these conversations have moved your work forward in any small way, and you'd like to keep the show ad-free, you can support us at buy me a coffee dot com slash fexingo. It's a simple way to show appreciation, and it genuinely helps us keep doing this. But let's get back to reference calls. Luna: Yeah, that's a good reminder. And it's easy to find — buy me a coffee dot com slash fexingo. But back to your point, Lucas. Lucas: So, take a typical renewal scenario. You've got a customer who's happy, but they're also getting pressure from procurement to cut costs. The renewal is at risk. Most reps would send a case study, maybe schedule a quick check-in. But the top rep — she invites that customer to be a reference for a prospect. Luna: Okay, but how does that help the renewal? The prospect might not even be similar to that customer. Lucas: That's the thing — you don't just pick any customer. You pick a customer who's in a similar industry, similar size, maybe even facing similar challenges. And you brief them beforehand. You say, 'Hey, we've got this prospect in your space, and they're worried about implementation time. Can you talk about your experience?' Luna: So you're positioning the customer as the expert. That gives them a sense of pride, maybe even ownership. Lucas: Exactly. And during the call, the customer talks about the value they've gotten — but not in a generic way. They talk about specific metrics, like how they reduced onboarding time by thirty percent or cut support tickets in half. And the rep is listening for those moments. Luna: Listening for what, exactly? Lucas: For the customer to articulate their own value. When the customer says, 'We couldn't run our business without this,' the rep notes that. Then, after the call, she follows up with the customer and says, 'You mentioned how much faster your team is now — that's a great point. Do you mind if I share that with your leadership during our business review?' Luna: Oh, that's clever. You're turning their own words into a renewal narrative. Lucas: Right. And it's not manipulative — it's actually reinforcing their own positive experience. They're reminded of the value they just vocalized. Plus, they've now publicly endorsed the product, which creates cognitive consistency. They're more likely to renew because they've gone on record saying how valuable it is. Luna: Cognitive consistency — that's a real psychological principle. But what if the customer is reluctant to be a reference? Maybe they're happy but don't want to spend the time. Lucas: That's where the rep's skill comes in. She frames it as a partnership — 'I want to connect you with a peer in your industry because I think you'd have great insights to share.' It's flattering. And she makes it easy: sends a prep sheet, offers to do a quick call to align on talking points. Luna: So it's not just a request; it's a curated experience. The customer feels valued. Lucas: Yes. And here's the twist: after the reference call, the rep doesn't just move on. She calls the customer the next day to thank them and debrief. She asks, 'How did it go? Did you feel confident?' That follow-up is gold. It opens the door to a real conversation about their own priorities. Luna: And during that debrief, the rep can uncover any lingering concerns that might affect the renewal. Lucas: Exactly. I remember a story from a SaaS company — let's call the rep Sarah. She had a customer who was on the fence about renewing a big contract. The customer had been quiet, not engaged. Sarah invited them to be a reference for a similar company. They agreed, did the call, and talked about how the product had helped them scale. After the call, Sarah sent a thank-you note and a quick survey. The customer's response was glowing — but it also revealed they were concerned about pricing for the next tier. Luna: So she uncovered the real objection — the price — just by following up on a reference call. Lucas: And because she had that information, she could address it head-on. She worked with her manager to put together a value-based case, showing how the product had saved them money in other areas. The customer renewed, and even expanded. The reference call didn't just help win a new logo — it saved a renewal. Luna: That's a powerful example. But what about the risk? What if the customer says something negative during the reference call? Lucas: That's a real concern, and it's why prep is so important. Top reps brief the customer on what to say and what not to say. They also set expectations with the prospect — this isn't a sales pitch; it's a peer conversation. If the customer does mention a challenge, the rep can handle it in the moment, turning it into a problem-solving discussion. That can actually strengthen credibility. Luna: So it's not about scripting the customer; it's about preparing them to have a genuine, positive conversation. Lucas: Right. And there's another layer: the reference call can be a way to gather competitive intelligence. The prospect might ask the customer, 'How does this compare to what you used before?' The customer's answer can reveal what the prospect is worried about — and what the competition might be pitching. Luna: So the rep is multitasking — using the call to build the case for renewal, uncover objections, and gather intel. That's efficient. Lucas: It's more than efficient — it's strategic. The best reps think of reference calls as an asset, not a checkbox. They track which customers make great references, what they said, and how it influenced the prospect. Over time, they build a library of advocates who are aligned with their renewal goals. Luna: And they also know when not to use a reference call. Maybe the customer is going through a rough patch — you wouldn't want to put them in that position. Lucas: That's a great point. You have to read the health of the account. If there's churn risk or dissatisfaction, a reference call could backfire. The rep needs to have a pulse on the relationship. That's where regular check-ins and health scores come in. If the relationship is solid, the reference call can be a powerful renewal tool. Luna: So, for our listeners who are thinking about their upcoming renewals, what's the takeaway? Lucas: Don't wait until renewal time to think about references. Start identifying your advocates now. Build that relationship early. And when you do ask for a reference, frame it as a partnership — not a favor. Then, leverage the call to reinforce value and uncover any concerns. It's a three-in-one move: strengthen the customer relationship, win new business, and secure the renewal. Luna: And maybe even expand the account, like Sarah did. That's the potential. Lucas: Exactly. So next time you're booking a reference call, think about what it can do for your renewal pipeline, not just your new business pipeline. It's a small shift that can have a big impact. Luna: Well said. Thanks for breaking that down, Lucas. Lucas: Happy to. And to our listeners, if you have a story about a reference call that saved a renewal, we'd love to hear it. You can reach us on social. Until next time.