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.
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
Renewal on time
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, no risk)
Execute no risk renewal path (customers 120 days prior to renewal, at risk)
Make sure you don’t drop the ball on renewals (customers 30 days before renewal that did not renew yet)
Automated communications on behalf of the company or the customer success manager.
“Your renewal is coming up in 90 days”