Leveraging Automation to Help You with Renewals

Renewal automation gives customers the ability to renew subscriptions to your service automatically in a way that is simple and efficient. This takes the burden of renewal off the customer and frees up your team to focus on other responsibilities. 

When leveraging renewal tools to assist with renewals there are three main benefits:

Increased Customer Lifetime Value (CLV)

The process of streamlining customer renewals leads to an increase in successful renewals. Automation software gives you the ability to send timely and personalized messages to customers reminding them to renew their subscription. 

Increased Efficiency 

With contract renewal management there is no longer a need for manual renewal and monitoring. This reduces the amount of labor required along with reducing errors. This leads to reduced operational costs and allows your team to focus on more pressing tasks. 

Increased Revenue Per User

Automating your billing leads to an increase in revenue per user decreasing input errors, reducing costs, and allowing managing your renewals with existing customers to be your priority. This shifted focus gives you the opportunity to improve customer experience and increase the likelihood of customers renewing. 

Revenue is also able to be predicted more accurately with renewal automation and is more reliable, enabling better decision-making and financial planning.

The Challenges of Automating Renewals

To stay ahead of the competition, it is important for organizations to streamline SaaS contact renewals and keep spending under control. If not streamlined effectively, auto contract renewals can pose several challenges such as:

  • Missed negotiation opportunities and excessive costs
  • Can take away from the personal relationship with your customers 
  • Managing hundreds of contracts is time consuming and poses a risk for errors
  • A lack of manual processes and a centralized system can result in inefficiencies and wasted time

Having contract renewal reminder software in place helps organizations to ensure contracts are renewed on time and managed effectively. 

How to Choose the Best Tool for Your Renewals

When starting the process of choosing tools for your renewals your organization must consider your goals and needs, budget, resources available, customer preferences and expectations, along with industry standards. Answering these questions will help you to identify the tools that will fit your business the best.

How to Implement & Optimize Your Tool for Renewals

  1. Identify Your Renewal Segments

When working towards renewal optimization, the first step should be to segment your customers based on renewal characteristics. This can include contract length, value, renewal type, status, and risk. Doing this will assist in prioritizing your efforts and assigning the right resources to each segment. After segmenting your customers, you can define different strategies and assign actions for each segment. 

  1. Assess & Mitigate Renewal Risks

Next, you’ll want to assess any potential risks to your renewal success. These risks could be everything from customer satisfaction to competitive threats to contract changes. You can measure and monitor your customer loyalty using surveys, analytics, feedback, and reports and then implement proactive measures to mitigate risks such as discounts, upgrades, along with addressing concerns. 

  1. Automate Your Renewal Tasks

After identifying and mitigating renewal risks, you’ll want to work to streamline your workflow using a renewal management software, task management tool, or CRM system to set deadlines, assign tasks, and track progress. This gives you the ability to automate email campaigns, quotes, proposals, and contracts to reduce labor and potential errors. 

  1. Community Your Value Proposition Clearly 

Communicating your value proposition to your customers is crucial in reinforcing your relationship, building trust, and increasing customer loyalty. You want to remind them of the benefits your product brings to them using various channels to reach them. Demonstrate your ROI and impact by using metrics and data to back up your efforts.

  1. Negotiate and Close Your Renewal Deals

To close your renewal deals you need to fully understand your customer’s needs, expectations, and goals so that you can offer them a solution that meets or exceeds them. Ensure you are prepared to handle objections, answer questions they may have, and give them convincing reasons to renew. To do this you will need to optimize your pricing along with creating and sending your contacts, receiving signatures, and confirming payments. 

Following these steps will help your organization to best optimize the renewal workflow while also improving your efficiency, performance, and results.

What Else You Should Consider 

Make sure to monitor and evaluate the renewal software regularly to track its impact on renewal metrics such as renewal rate, churn rate, customer retention cost, and customer lifetime value. These metrics give your organization insight into the health of your business and what future growth could look like. 

It is essential to communicate and educate customers and staff about the benefits and features of the tool. Provide clear instructions on how to use it and offer support if needed. Staff should be trained to answer any questions that may arise.

Remember to balance automation with human interaction; while automation is useful, human contact is still valuable for building relationships.

To ensure your renewal workflow is optimized and renewal tasks are automated you’ll want to follow these best practices:

Data-Driven Decisions

Tracking renewal data gives you the ability to make more effective decisions that are backed by data. Automation makes the process of gathering and analyzing data easier so that you can identify common reasons for non-renewal and tailor your strategies accordingly. 

Flexibility

Customers’ needs are constantly changing and evolving. It’s important that you offer service plans that change with these evolving needs. Plans should be able to be easily adjusted to make the renewal decision as simple for the customer as possible. 

Transparency 

Make sure there is a strong level of transparency between your customers and your organization. Customers should always be informed of any changes made to the service, additional costs, or terms in advance and should have a clear understanding of the renewal process. This can lead to improved customer retention and satisfaction.

Enhancing the Customer Experience

Customer satisfaction should always remain a priority in the renewal process. This entails ensuring that the process is seamless, customer issues are addressed, and issues are resolved in a timely manner. 

Renewtrak is the #1 renewals and subscriptions automation platform that can help you increase your net revenue intention by automating your renewal workflow. Our platform optimizes revenue retention and powers growth by transforming renewals and subscriptions business through automation.