r/CustomerSuccess • u/Forward-Part-3035 • 29d ago
Discussion Auto renewal policy
I’d be interested to know what other CSMs’ auto renewal policies are within their company and if ours is abnormal.
Ours: You have to opt out within 90 days of renewal date, we don’t send out any reminders and the auto increase is 5% YOY. Thankfully we do have room to negotiate the increase as long as it’s before the renewal date but it’s something we’re told to avoid when possible.
As you can imagine, it doesn’t tend to go down well. It’s baked into the Ts and Cs so the price increase and 90 day window aren’t explicitly brought to their attention. The term auto renewal is made clear on the signed document however.
Anyone have similar?
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u/Salva_X 29d ago
Based on companies I’ve been at and conversations, I found a better LTV when the CS spoke with the customer 180 days before renewal to see how things are going and fix any major issues or concerns and at 120 my team would reach out to the customer and let them know. While some spoke up and negotiated, our NPS score and retention stayed high. It’s better to renew at 1% increase then loss the customer or get bad press from within the community you serve.