How can you manage renewals with different contract terms?

Whether dealing with fixed-term contracts, evergreen contracts, auto-renewals, or co-terminus contracts, each comes with its own set of advantages and pitfalls. Fixed-term contracts offer predictability but necessitate proactive communication and negotiation. Evergreen contracts reduce churn but limit flexibility. Auto-renewals simplify the process but require transparent communication and opt-out options. Co-terminus contracts synchronize end dates but complicate the renewal cycle and budgeting. In navigating this landscape, it's not just about adapting; it's about strategically maneuvering through the nuances of each contract type, ensuring that renewals align with business goals and customer expectations.

in my opinion Don't put off a contract review until it's time to renew. Have a library of contract templates and terms. Communicate with your partners throughout the process. Speak to a legal team to improve contracts. Automate data collection and tracking.

There are four main groups: high-value and loyal, high-value and at-risk, low-value and loyal, and low-value and at-risk. Each group needs clear renewal goals, tactics, and metrics. For high-value, loyal customers, the goal is likely retaining and expanding contracts. Tactics might involve incentives and added services, and metrics could be renewal and net retention rates. On the flip side, for low-value, at-risk customers, the goal might be preventing churn or boosting their value. Tactics could include addressing pain points and demonstrating your value proposition, with metrics like churn rate and cross-sell rate. This practical approach ensures a focused renewal strategy tailored to each group's specific needs.

We use a tool called Todoist. It is an app. No more sticky notes. It is easy to add a task on the fly. you can assign to someone else. Or a group. syncs with your calendar. gives reminders. Allows updates & reoccurring items. I set up everything that has an expo date in this system as a reminder that I have to do something in prep for this. You can put as detailed a desc as you want. For example. The title could be Customer X Contract Expo Due for every Nov 1 @tracy. By typing that in it assigned it to me with a repeating deadline of Nov 1st. This gives me time to work on it by year end. In the notes section I can be putting notes as I need to. Like don’t forget to reevaluate the freight costs. Or raw matl cost up need to take to bid. Etc.

Renewal starts from the moment you convert your prospect to a customer. We're not just talking occasional check-ins; it's a strategic, ongoing dialogue throughout the contract lifecycle. It's about building a relationship—understanding their needs, delivering value, and, crucially, educating them about their renewal options and benefits. We leverage a mix of communication channels—phone, email, webinars, surveys, social media—to keep the conversation alive. It's not just about renewals; it's a chance to upsell, cross-sell, and even turn happy customers into advocates. Communication isn't a tick-box; it's a savvy strategy to keep our customers satisfied and our business thriving.