# Renewals > Plan the renewal: timeline-based outreach, expansion opportunities and QBR preparation. Use when negotiating contract renewals, multi-year expansions, or churn defense. - Skill: `poorvith-mp/renewals` (Agent Skill, multi-file: 3 files) - Install (CLI): `npx skillmds@latest add poorvith-mp/renewals` - Raw SKILL.md: https://api.skillmd.com/api/skills/poorvith-mp/renewals/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: poorvith-mp (https://skillmd.com/u/poorvith-mp) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/poorvith-mp/renewals --- # renewals ## Core Philosophy Contract renewals in B2B SaaS should be a natural non-event, not a panic-driven negotiation that begins 30 days before expiration. If a customer is surprised by a renewal notice or considers canceling at the contract anniversary, the account was mismanaged months ago. A world-class renewal process starts 120 days before contract expiration, is anchored in proven historical ROI, and uses multi-year commitments and expansion plays to drive $> 110\%$ Net Retention. --- ## 4-Step Renewal Management Framework ### Step 1: The 120-Day Renewal Runway Cadence 1. **Day -120: Account Health & Risk Diagnostic**: - Audit telemetry: License utilization, API volume, executive sponsor status. - Flag any unresolved P1 support tickets or pending feature requests. - Determine target outcome: Flat Renewal, Uplift Renewal (+5–10%), or Multi-Year Expansion. 2. **Day -90: The Pre-Renewal Executive Touchpoint**: - Present an Executive Impact Report to the economic buyer summarizing total value delivered over the contract term. - Confirm upcoming organizational initiatives for the next fiscal year. 3. **Day -60: Commercial Proposal & Options Delivery**: - Deliver the formal renewal order form with options: - Option A: 1-Year renewal with standard price uplift (e.g. +7% CPI adjustment). - Option B: 3-Year multi-year renewal locking in current price and adding 20% capacity. 4. **Day -30 to 0: Legal, Procurement & DocuSign Sign-Off**: - Manage procurement redlines, PO generation, and executive signature before the expiration date. ### Step 2: Value Delivery Framing (The ROI Memorandum) 1. **The Executive Renewal Memo Structure**: - *Executive Summary*: 1 paragraph summarizing the partnership. - *Quantified Outcomes*: Hard metrics delivered (e.g. "Eliminated 120 hours of manual compliance work, saving estimated $45,000"). - *Platform Utilization*: Growth in active users and data throughput over the term. - *Upcoming Value*: 2 major features launching in Q1 that solve their stated roadmap goals. ### Step 3: Defending Against Churn & Price Sensitivity 1. **Handling the "We Don't Have Budget" Objection**: - Re-anchor on the Cost of Inaction (COI): Calculate the cost of ripping and replacing the tool vs the renewal fee. - Downsell / De-scope gracefully: Reduce unutilized seat tiers rather than losing the customer entirely. 2. **Handling Procurement Demands for Discounts**: - Never give a unilateral discount without receiving commercial concessions in return: - Require a multi-year term (2 or 3 years). - Require upfront annual payment (no quarterly billing). - Require participation in a named public case study and logo rights. ### Step 4: Multi-Year Lock-In & Expansion Plays 1. **The Multi-Year Value Exchange**: - Offer price predictability: Protect the customer from annual inflation and price hikes in exchange for long-term contract certainty and committed ARR. --- ## Deliverable Format: Renewal Strategy Blueprint (`RENEWAL-SPEC.md`) ```markdown # Contract Renewal & Expansion Strategy: [Customer Name] ## 1. Contract Snapshot - **Current ARR**: [$XXX,XXX] | **Contract Expiration Date**: [YYYY-MM-DD] - **Renewal Lead Time**: [120 / 90 / 60 / 30 Days Out] - **Target Renewal Outcome**: [Expansion / Multi-Year / Flat + Uplift] - **Target Renewal ARR**: [$XXX,XXX] (Target NRR: [XX%]) ## 2. Value Realization Summary (Past Contract Term) - **Total Workflows / Events Processed**: [XX,XXX,XXX] - **Quantified Customer Time Saved**: [XXX hours] - **Estimated ROI / Cost Avoidance**: [$XX,XXX] - **CSAT / Support Track Record**: [0 unresolved P1s; 98% resolution SLA] ## 3. Commercial Renewal Options Matrix | Dimension | Option 1 (Standard 1-Year) | Option 2 (Preferred 3-Year Lock) | |---|---|---| | Contract Term | 12 Months | 36 Months | | Annual ARR | [$XX,XXX (+7% uplift)] | [$XX,XXX (Current rate locked)] | | Billing Frequency | Annual Upfront | Annual Upfront | | Additional Capacity | Baseline | +20% free seat / volume buffer | ## 4. Critical Timeline & Action Gates - **Day -90 (MM/DD)**: Deliver Executive ROI Report to [VP Name]. - **Day -60 (MM/DD)**: Deliver Renewal Order Form with 3-Year Option. - **Day -30 (MM/DD)**: Finalize Procurement / PO generation. ``` --- ## Worked Example: Multi-Year Renewal Negotiation - **Situation**: $60k ARR annual contract expiring in 90 days. Procurement demanded a 15% price cut to match budget cuts. - **Counter-Strategy**: Account team delivered an ROI memorandum showing the software saved $140k in developer hours. Offered a 3-year contract at $55k/year (saving procurement $15k over 3 years) with upfront annual billing. - **Outcome**: Customer signed a 3-year agreement representing $165k in guaranteed ARR. --- ## Verification Checklist - [ ] Renewal process initiates at least 120 days prior to contract expiration. - [ ] Executive ROI Memorandum summarizes quantified outcomes delivered over the term. - [ ] Multi-year options offer price protection in exchange for contract commitment. - [ ] No discounts are granted without reciprocal commercial concessions (term length, case study). - [ ] Legal and procurement timelines are mapped with explicit milestone dates. --- ## Anti-Patterns - **Day-30 Surprise**: Reaching out for the first time 30 days before expiration without knowing if the customer is satisfied. - **Unilateral Concessions**: Cutting prices by 20% simply because procurement asked, destroying gross margins. - **Assuming Auto-Renewal**: Relying on passive contractual auto-renewal clauses while the customer actively stops using the product.