You’ve worked hard to acquire your customers, but holding onto them through multiple renewal cycles is really the key to subscription business success. Many SaaS businesses rely on auto-renewals to support the business. This is integral to the subscription business model, but it doesn’t mean you can kick back and relax. Common pitfalls related to renewals include:
Best practices for managing SaaS renewals actually goes back to the beginning of the relationship.
1) Follow your customers after on-boarding. Take a look at how they are using your software. Establish metrics that can help you analyze customer usage and overall satisfaction. If customers are not utilizing the software, find out why.
2) Monitor your customer contact points. How often do you get in touch with customers? How does this intersect with service expiration dates and renewal notices? If you’re only contacting customers right before their service expires, and your renewal rate is lower than it could be, a more proactive communication strategy can help.
3) Make sure you have full visibility into the subscription lifecycle—from order to renewal, especially if you have complex or event-driven on-boarding scenarios. You need to know, at-a-glance, exactly which subscribers are up for renewal. Then your team can take action to process them manually or set them up to auto-renew.
4) Automate the flow of new orders, renewals and subscriptions from Salesforce to your subscription management solution. Spreadsheets and manual processes only increase the likelihood of missing renewals. When your team is working from an accurate, single source of truth, they can receive timely triggers for renewal dates and other milestones, so they won’t lose important customers.
5) Create custom milestone triggers for invoices, revenue records, subscription term dates and renewals. In addition to receiving these helpful alerts, give your sales teams the ability to easily add upgrades to existing term contracts and automate invoice adjustments so they don’t have to waste time making manual updates and calculations.
Your full potential as a SaaS business depends on a successful renewals management process. Follow these simple steps to increase your renewals business and identify new upsell and cross-sell opportunities you never knew existed.
SaaSOptics is a complete B2B subscription management platform that provides subscription and order management, GAAP revenue recognition, e-invoicing and payments, financial reporting and robust subscription metrics and analytics. SaaSOptics is a cloud-based solution that enables emerging and growth subscription businesses the ability to eliminate their dependency on spreadsheets and streamline their financial operations, reporting and performance metrics.
Unlike most subscription management providers, SaaSOptics is easy to use, very affordable and takes 2-4 weeks to implement. SaaSOptics serves over 400 customers worldwide managing over $2.5B in revenue.
SaaSOptics industry-leading performance metrics and analytics delivers all the subscription reporting you need such as ARR/MRR waterfalls, churn and retention rates, customer lifetime value (CLV), and a variety of cohorts. SaaSOptics provides deep integration with Salesforce, QuickBooks, Stripe and Recurly, providing our customers with the efficiency, accuracy and insight they need to manage and grow their business.