Turning around a struggling renewal rate is the holy grail of growth.
When Bradley Lawrence, Senior Director of Customer Success at Coursera, faced a GRR of just 47%, he knew something had to change. Here’s how he did it. He came to SaaStr Annual to share all the details.
About Brad
Bradley Lawrence serves as Senior Director of Customer Success at Coursera, where he’s led a transformational turnaround in the company’s enterprise renewal rates. With extensive experience in B2B customer success, Lawrence oversees Coursera’s relationships with corporations, universities, and government institutions. Under his leadership, the CS team has achieved a remarkable 39-point improvement in Gross Renewal Rate within just 12 months. Prior to this role, Lawrence built his expertise in customer success and account management, bringing a wealth of experience in driving customer outcomes at scale.
The Numbers That Matter
- GRR Improvement: 47% → 86% (Q2 YoY)
- Early Renewal Target: >40% of next quarter’s revenue
- CSM Compensation Split: 70/30 base/variable
- NRR Goal: 1.3x initial spend
The Initial Diagnosis: What Was Breaking Renewals?
The problems weren’t unique to Coursera – they’re challenges that plague many B2B SaaS companies:
- Weak deal management fundamentals
- Unclear procurement processes
- Budget visibility issues
- Limited access to ultimate decision-makers
- Misaligned customer segmentation
- Scale problems in account management
The Turnaround Playbook
1. Deal Management Revolution
Lawrence implemented a comprehensive deal management system that focused on:
- Joint execution plans for ALL renewals
- Documented renewal process with clear milestones
- Champion identification and commitment tracking
- Early renewal targets (40%+ of next quarter’s revenue)
2. Customer Success Team Restructuring
The team was reorganized into three distinct segments:
- High Volume, Low ACV
- Mid-Volume, Mid-ACV
- Strategic Accounts (Low Volume, High ACV)
This segmentation allowed for proper resource allocation and prevented the common trap of senior talent working with small accounts while junior CSMs struggled with enterprise customers.
3. Product Stickiness Strategy
To combat easy churn at renewal time, Coursera focused on:
- Making their product a “vitamin” not just a “pain pill”
- Implementing critical integrations (SSO, HR systems)
- Reducing implementation times
- Building technical debt reduction into the roadmap
4. CSM Role Optimization
The team implemented a clear structure for CSM success:
- 70/30 compensation split (base/variable)
- Variable comp tied to both utilization/health metrics and NRR
- Clear ownership of renewal outcomes
- Defined interaction points with sales, product, and support
5. Implementation Process Overhaul
A strict pre-sales and implementation process was established:
- Proper proof of concept sizing (typically 20% of normal deployment)
- Mandatory implementation completion thresholds
- Joint execution plans with technical mapping
- Solutions Consulting team involvement in technical setup
The Hidden Keys to Success
Institutional Buy-in
Success required more than just CS team effort:
- Cross-departmental health metrics ownership
- Resource allocation for implementation
- Executive engagement in renewal process
- Alignment between sales, CS, and product teams
Remote Team Excellence
As a fully remote organization, Coursera invested in:
- Regular team offsites
- Relationship building opportunities
- Collaborative problem-solving sessions
- Strong operational rhythm for pipeline management
Key Lessons for Other SaaS Companies
- Segmentation is Critical: Not all customers need the same level of support. Proper segmentation ensures efficient resource allocation and appropriate customer experience.
- Early Renewals Matter: Having 40%+ of next quarter’s revenue already closed provides breathing room and reduces end-of-quarter scrambling.
- Product Stickiness Requires Investment: Technical integrations and reduced implementation times are worth the engineering investment.
- CSM Compensation Must Align with Goals: A 70/30 split with clear metrics creates the right incentives without overwhelming variable compensation.
- Implementation is Make-or-Break: A strict implementation process with clear thresholds prevents future churn risk.
What’s Next?
The key to maintaining this improvement lies in:
- Continuous process refinement
- Regular health metric monitoring
- Proactive churn prevention
- Strong product-market alignment
