A big renewal is 60 days away. Usage is weak, the sponsor has gone quiet and procurement wants a 30% cut. How do you approach it?
What the interviewer wants to hear
- Assess risk honestly and inform leadership
- Re-engage the sponsor or find a new one
- Build a value case and a quick adoption plan
- Prepare negotiation options and walk-away limits
- Consider right-sizing to protect the relationship
Model answer
I would start by being honest internally: I would flag the renewal as at risk in the forecast and agree a plan and approval limits with my manager and the account executive. Next I would try to re-engage the sponsor through other contacts, or find a new one, because negotiating only with procurement focuses everything on price. I would build a value case with the results they have achieved and an honest view of the adoption gaps, plus a 30-day plan to improve usage in the teams that matter. For the negotiation, I would prepare options: a right-sized licence count that matches real use at fair pricing, a longer term in exchange for some concession, or a phased re-expansion. Protecting the relationship at a smaller size is usually better than losing the account completely.
Can you answer it under time pressure?
Take a timed hard round and get scored on every answer.
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