In the SaaS vertical, all commercial discussions are not equal. For example, the customer acquisition conversation has a distinctly different dynamic than the customer retention conversation. Each phase of the customer lifecycle has a distinct set of drivers, demands, and participants who are aligned with specific motives and expectations.
In acquisition, you promise outcomes. In retention, you prove them — again and again.
CSM's Wisdom
Key Differentiating Factors:
Let’s list some pointers for differences in discussions for new business and renewals, looking at how Sales or Customer Success contributes to each.
1. Goal Orientation: Acquisition vs. Value Realisation
New Customer:
The main focus is on completing the initial deal and, as a result, engaging in a fashion of closing off excitement. So, as a showpiece, the solution’s value to the customer’s pains is positioned more favorably to the buying decision as a clear-cut winner versus the myriad of competition present. It is essential for sales people to generate trust quickly and create lower-friction pathways to excitement so sales activity increases.
Existing Customer:
From the perspective of a CSM, with an existing customer, their strategy is to ensure value has already been delivered, and is continuing to grow. The conversation stems around on demonstrating the outcomes that the customer was targeting or sought to acheive and how his targets have been surpassed through product usage. The CSMs focus on value draws on tangible proof and successful case studies. These proof points enable their continual investment.
Key Insight:
Acquisition is about potential value, renewal is about proven value.
2. Knowledge Depth: Assumptions vs. Experience
New Customer:
Sales executives who deal at the level of prospective newer customers come with preconceived notions as to how problems manifest and how a business runs internally. They are obliged to gather all the information over the phone or using a step by step telling them what is strategically relevant to gain insight into what needs the customer has with their solution offerings. Assumptions play a larger role, adaptability is key to perform changes as their conversations change and as things get more fluid.
Existing Customer:
CSMs are the other side of this who have a rich history of most customer interactions, support cases, adoption metric visits, and even conversations with executives. They know well what the customer’s ecosystem, problems, and even power dynamics are. This understanding will enable them to tell stories to explain thesis with values around usage, business impact, and growth opportunities.
Key Insight:
Sales sells a vision; CSMs sell validation.
3. Evaluation Criteria: Fit vs. Friction
New Customer:
For new customers, the evaluation centers on the level of alignment the product has with their present needs, systems, and future directions. They gauge whether smooth onboarding is attainable, ROI will be realized, and whether the solution will surpass alternatives. Sales has to get rid of doubt and present their offering as a safeguarded investment.
Existing Customer:
Renewing customers have a somewhat cynical view of their preceding experience. High friction like delayed support, missing features, or usability difficulties can threaten renewal. The CSM has to manage these concerns, demonstrate why the product continues to evolve to meet needs, and resolve issues that are increasingly being shelved.
Key Insight:
New customers look for a match; existing customers examine the marriage.
4. Urgency & Timeline: Firm Deadlines vs. Fluid Dependencies
New Customer:
External sources often impose strict deadlines for new deals. These may include budget cycles, pending projects, or competitive threats. Sales teams organize proposals and cultivate follow-up engagements in order to prompt attention toward the proposal before priorities shift. The new proposal window represents a window of opportunity.
Existing Customer:
On the other hand, renewals are managed with a bias toward internal business flows and dependencies. Pro-Procurement approvals along with shifting priorities, defining new product launches, and leadership overhauls can simultaneously influence renewal negotiations. CSMs have to engage in flexible shaping of timelines in order to ensure that they are able to navigate within the continuous movements.
Key Insight:
Sales runs on external urgency; Success manages internal dependencies.
5. Stakeholder Influence: Gatekeepers vs. Champions
New Customer:
In dealing with a new customer, Sales routinely need to contend with skeptics and gatekeepers. It is not enough to just win over the decision-maker; other people immersed in day-to-day functions also need convincing regarding the product’s usefulness and importance. Instant rapport is highly important, because a lot of milestone players are not going to be emotionally or professionally onboard at this particular moment. The Sales Executive needs to find a champion who will help deal with the opposition.
Existing Customer:
With existing customers, the CSM ideally has advocates and champions who have actually derived value from the product. Unfortunately, organizational shifts often bring in new stakeholders who do not have any context of prior successes. This makes the CSM unable to leverage existing trust and needing to prove them anew. Along with that, the CSM is required to control nullifiers due to negative perceptions built from unmet expectations.
Key Insight:
Sales earns trust; CSMs sustain and leverage it.
Final Takeaway
The handoff between Sales and Customer Success must be seamless for long-term growth. Sales teams should set realistic expectations and document key promises and business objectives during the deal closure. CSMs should build upon that foundation, ensuring those promised outcomes are delivered, celebrated, and expanded upon during the relationship.
When both teams share insights and work toward the customer's evolving needs, renewals feel natural, and expansion becomes inevitable.
Every commercial discussion—whether for a new deal or a renewal—is a moment of truth.
Sales excels at opening the door.
Success ensures the stay is worth it.
By recognizing these five differentiating factors and aligning strategies accordingly, SaaS companies can drive both customer acquisition and lifetime value with greater confidence and clarity.