Renewal

High customer renewal rates are essential for growth in a recurring revenue business model. If you have a leaking bucket, much of the efforts you are putting into acquiring new customers goes down the drain, and eventually, your business will follow. Implement the right measures and processes to make sure your customers renew their subscription with you.

Here's a typical customer Renewal SuccessBLOC. You can customize it for your own business, but it will give you a good starting point.

Goals & KPIs.

Ensure high renewal rates by monitoring current renewal status, forecast, and customers at risk.

High renewal rate

KPI Accounts Renewal rate

KPI Revenue churn QTD

KPI Unit Churn QTD

KPI Revenue forecasted churn till the end of the quarter

KPI Revenue churn per quarter last year

Focus on renewals at risk

KPI Revenue at risk for renewal

KPI Renewal customers by status (for example, renewed, no risk, risk)

KPI 90% Renewal opportunity in good health

Renewal on time

KPI Number of customers that are past their renewal date

Segments.

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

Best Practices.

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

SuccessPlays.

Implement the right processes to ensure renewals.

Execute a no risk renewal path (customers 120 days prior to renewal, no risk)

Task Work with AE to create a renewal proposal and send to customer

Task AE to get a verbal approval

Task Sign renewal

Execute no risk renewal path (customers 120 days prior to renewal, at risk)

Task Create a renewal plan with AE

Task Discuss Renewal path with customer

Task Change renewal forecast if relevant

Make sure you don’t drop the ball on renewals (customers 30 days before renewal that did not renew yet)

Task Present to VP CS status and mitigation plan

Campaigns.

Automated communications on behalf of the company or the customer success manager.

Renewal Reminder

“Your renewal is coming up in 90 days”

Goal Reminding customers that their renewal is coming up, giving them the opportunity to let you know if there’s an issue

Targeting No/Low touch customers, 90 days prior to renewal.

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