High customer renewal rates are essential for growth in a recurring revenue business model. The rate at which your customers renew impacts both the speed at which you grow and the size your organization can achieve. This is why it’s key to implement the right measures and processes to make sure your customers renew their subscriptions.
Here's a typical customer Renewal SuccessBLOC. You can customize it for your own business, but it will give you a good starting point.
Ensure high renewal rates by monitoring current renewal status, forecast, and customers at risk.
High Renewal Rate
To achieve high renewal rates look at all of your accounts renewal rates, churn cost per quarter-to-date (QTD), unit churn QTD, forecasted cost of churn until the end of the quarter, and cost of churn per quarter of the year before.
Focus on Renewals at Risk
Look at the cost of at risk for renewals, renewal customers by status (for example, renewed, no risk, and risk) and try to achieve a 90% renewal opportunity in good health.
Renewal on Time
This is the number of customers that are past their renewal date.
Monitor customers prior to their renewal.
All customers renewing in this quarter
Customers renewing this quarter, at risk
Customers that canceled during this quarter
Tier1/Enterprise customers renewing this quarter
Help your team by providing them with best practices in the renewals process.
Description of Renewal Process
Standard Contract Template
Define Steps of Renewal as Sub-Stages using Status Attribute
Implement the right processes to ensure renewals.
Execute a no Risk Renewal Path: Customers 120 Days Prior to Renewal (that are at no Risk)
Work with the Account Executive (AE) to create a renewal proposal and send them to the customer. The AE should work to get verbal approval and then a signed renewal.
Execute a no Risk Renewal Path: Customers 120 Days Prior to Renewal (that are at Risk)
For customers that are at risk create a renewal plan with the AE. Then discuss the renewal path with customer. You might need to change the renewal forecast if relevant. Make sure you don’t drop the ball on renewals for customers that are 30 days before renewal date that still have not renewed. Lastley present to VP of Customer Success the status and mitigation plan.
Automate your communications on behalf of the company or the customer success manager using campaigns to send automated emails triggered by various goals. Here are a few examples:
“Your renewal is coming up in 90 days”