Skill: 1kalin/afrexai-renewal-management (version 1.0.0)

# Contract & Subscription Renewal Management Systematic framework for managing contract renewals, reducing involuntary churn, and maximizing renewal revenue. Covers SaaS subscriptions, service agreements, vendor contracts, and client retainers. ## When to Use - Quarterly renewal pipeline review - Building a renewal management process from scratch - Reducing churn from missed or mishandled renewals - Negotiating vendor contract renewals - Forecasting renewal revenue ## Renewal Pipeline Framework ### 120-Day Renewal Cadence | Days Out | Action | Owner | Deliverable | |----------|--------|-------|-------------| | 120 | Flag renewal in pipeline | Ops/CS | Renewal record created | | 90 | Health check + usage review | CSM | Account health score | | 60 | Renewal proposal drafted | Sales/CS | Pricing + terms doc | | 45 | First outreach to customer | CSM | Meeting scheduled | | 30 | Negotiation / upsell conversation | AE/CSM | Updated proposal | | 14 | Final terms agreed | Legal/Sales | Contract ready | | 7 | Signature reminder | Ops | DocuSign/PandaDoc sent | | 0 | Renewal executed | Finance | Invoice generated | | +7 | Post-renewal check-in | CSM | Confirmation + next QBR | ### Account Health Score (Pre-Renewal) Rate each dimension 1-5: | Dimension | Weight | Indicators | |-----------|--------|------------| | Product Usage | 25% | DAU/MAU ratio, feature adoption, login frequency | | Support Health | 20% | Ticket volume trend, CSAT, escalations | | Relationship | 20% | Exec sponsor access, NPS, referral willingness | | Business Impact | 20% | ROI documented, expansion potential, strategic fit | | Payment History | 15% | On-time payments, disputes, credit terms | **Score interpretation:** - 4.0-5.0: Auto-renew candidate, push multi-year - 3.0-3.9: Standard renewal, address gaps before proposal - 2.0-2.9: At-risk — executive intervention needed - Below 2.0: Churn likely — prepare save offer or graceful exit ### Renewal Pricing Strategy **Price increase guidelines by segment:** | Segment | Safe Increase | Max Without Justification | Requires Business Case | |---------|--------------|--------------------------|----------------------| | Enterprise ($100K+) | 3-5% | 7% | 10%+ | | Mid-Market ($25-100K) | 5-8% | 10% | 15%+ | | SMB ($5-25K) | 8-12% | 15% | 20%+ | | Self-Serve (<$5K) | 10-15% | 20% | 25%+ | **Uplift justification framework:** 1. New features shipped since last renewal (list top 5) 2. Usage growth (% increase in seats/API calls/storage) 3. Market rate comparison (competitor pricing delta) 4. Cost-of-switching calculation for customer 5. ROI documentation (dollars saved or generated) ### Vendor Renewal Negotiation (Buy-Side) When YOUR contracts are up for renewal: **Pre-negotiation checklist:** - [ ] Pull actual usage data (are you using what you're paying for?) - [ ] Get 2-3 competitive quotes (even if you plan to stay) - [ ] Calculate cost per unit vs. market benchmarks - [ ] Identify contract terms to improve (payment terms, SLA, data portability) - [ ] Know your BATNA (best alternative to negotiated agreement) **Negotiation levers:** | Lever | Typical Discount | When to Use | |-------|-----------------|-------------| | Multi-year commit | 15-25% | When vendor is strategic and stable | | Upfront annual payment | 10-15% | When cash flow allows | | Case study / reference | 5-10% | When your brand has marketing value | | Competitive threat | 10-20% | When credible alternatives exist | | Volume commitment | 10-30% | When usage is growing predictably | | Off-cycle renewal | 5-10% | When renewing outside vendor's fiscal year-end | | Bundle consolidation | 15-25% | When vendor has multiple products you could adopt | ### Renewal Revenue Forecasting **Forecast categories:** ``` Committed Revenue = Signed renewals + auto-renewals with no churn signal Probable Revenue = Health score 3.5+ with active engagement (weight: 85%) At-Risk Revenue = Health score 2.0-3.4 or unresponsive (weight: 50%) Churning Revenue = Health score <2.0 or explicit cancellation intent (weight: 10%) Forecast = Committed + (Probable × 0.85) + (At-Risk × 0.50) + (Churning × 0.10) ``` **Monthly renewal dashboard metrics:** - Gross Renewal Rate (GRR): Target >90% - Net Revenue Retention (NRR): Target >110% - Renewal pipeline coverage: 3x minimum - Average days to close renewal: Target <30 from first outreach - Price increase realization: % of proposed increases accepted ### Involuntary Churn Prevention Payment failures cause 20-40% of SaaS churn. Prevention framework: | Trigger | Action | Timeline | |---------|--------|----------| | Card expiring in 30 days | Email + in-app notification | Day -30 | | First payment failure | Retry + email notification | Day 0 | | Second failure | SMS + email + in-app banner | Day 3 | | Third failure | Phone call from CS | Day 7 | | Grace period warning | Final notice with deadline | Day 10 | | Account suspension | Suspend with easy reactivation | Day 14 | | Final cancellation | Data export + win-back offer | Day 30 | ### Save Offers (Last Resort) When a customer explicitly wants to cancel: | Customer Reason | Save Offer | Success Rate | |----------------|------------|-------------| | Too expensive | 20-30% discount for 3 months | 35-45% | | Not using enough | Free onboarding session + usage plan | 25-35% | | Switching to competitor | Feature roadmap preview + price match | 15-25% | | Budget cuts | Downgrade to lower tier | 40-50% | | Missing features | Beta access + feedback loop | 20-30% | | Poor support experience | Dedicated CSM + SLA upgrade | 30-40% | ### Renewal Automation Checklist - [ ] Auto-renewal clause in all contracts (with opt-out notice period) - [ ] CRM renewal pipeline with automated stage progression - [ ] Email sequences triggered at 90/60/30/14/7 days - [ ] Dunning flow for failed payments (3-4 retries over 14 days) - [ ] Usage reports auto-generated and sent to stakeholders monthly - [ ] Health score calculated weekly from product analytics - [ ] Renewal forecast updated in real-time from pipeline data - [ ] Post-renewal survey sent within 48 hours of signing ### Annual Renewal Calendar Template | Month | Renewals Due | ARR at Risk | Priority Accounts | Notes | |-------|-------------|-------------|-------------------|-------| | Jan | [count] | $[amount] | [list top 3] | Post-holiday — start outreach early Dec | | Feb | [count] | $[amount] | [list top 3] | Fiscal year-end for some — budget conversations | | Mar | [count] | $[amount] | [list top 3] | Q1 close — decision-makers available | | ... | ... | ... | ... | Fill per your renewal schedule | --- ## Resources - **Full industry context packs** with renewal playbooks for 10 verticals: [AfrexAI Context Packs](https://afrexai-cto.github.io/context-packs/) — $47 per industry - **Calculate your AI automation ROI**: [Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) - **Set up your agent stack**: [Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/) - **Bundle deals**: Pick 3 for $97 | All 10 for $197 | Everything Bundle $247

path: README.md
content: # Contract & Subscription Renewal Management

Stop losing revenue to missed renewals and botched negotiations. This skill gives your agent a complete renewal management system — from 120-day cadence planning to save offers and dunning flows.

## What's Inside

- **120-day renewal cadence** with owner assignments and deliverables at each stage
- **Account health scoring** — 5-dimension weighted model to predict renewal outcomes
- **Pricing strategy by segment** — safe increase ranges for Enterprise through Self-Serve
- **Vendor negotiation playbook** — 7 discount levers with typical ranges (15-30%)
- **Revenue forecasting model** — committed/probable/at-risk/churning categories
- **Involuntary churn prevention** — dunning flow that recovers 60-80% of failed payments
- **Save offer matrix** — matched to cancellation reason with historical success rates
- **Automation checklist** — everything you need to put renewals on autopilot

## Who This Is For

- SaaS companies with recurring revenue
- Agencies managing client retainers
- CS/Account Management teams building renewal processes
- Ops leaders reducing churn and improving NRR
- Anyone negotiating vendor contract renewals (buy-side)

## Key Metrics This Improves

| Metric | Typical Before | After Implementation |
|--------|---------------|---------------------|
| Gross Renewal Rate | 80-85% | 90-95% |
| Net Revenue Retention | 95-100% | 110-120% |
| Involuntary Churn | 5-8% | 1-2% |
| Days to Close Renewal | 45-60 | 20-30 |

## Get More

- [AI Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) — find where you're losing money
- [Industry Context Packs](https://afrexai-cto.github.io/context-packs/) — $47/pack with vertical-specific playbooks
- [Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/) — configure your AI agent stack

Built by [AfrexAI](https://afrexai-cto.github.io/context-packs/) 🖤💛


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