What is the process for renewing sales contracts?

1 Identify renewal opportunities

The first step is to identify which contracts are due for renewal and which ones are at risk of cancellation or non-renewal. You can use a contract management system or a CRM tool to track the expiration dates, renewal terms, and customer satisfaction levels of your contracts. You should also review the performance and value of each contract, and identify any gaps, issues, or opportunities for improvement. This will help you prioritize your renewal efforts and prepare your proposals.

2 Reach out to your customers

The next step is to reach out to your customers and initiate the renewal conversation. You should do this well in advance of the contract end date, preferably at least 90 days before. This will give you enough time to understand their needs, expectations, and feedback, and to address any concerns or objections they might have. You should also use this opportunity to remind them of the benefits and value of your product or service, and to showcase any new features, updates, or offers that might interest them.

4 Draft and send the renewal contract

The fourth step is to draft and send the renewal contract to your customers. You should use clear and concise language, and include all the relevant details, such as the parties, the product or service, the price, the duration, the payment terms, the termination clauses, and the signatures. You should also use a secure and convenient method to send and receive the contract, such as an electronic signature platform or a cloud-based document management system. This will help you speed up the process and avoid any errors or delays.

5 Follow up and close the deal

The final step is to follow up with your customers and close the deal. You should not assume that they have received or signed the contract, and you should check in with them regularly until you get a confirmation. You should also address any questions or concerns they might have, and provide them with any additional information or support they need. Once you get the signed contract, you should thank them for their trust and loyalty, and send them an invoice or a receipt. You should also update your records and systems accordingly, and schedule a follow-up meeting or call to ensure a smooth transition and a successful implementation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?