Definition
The point at which a customer's contract or subscription continues into a new term, either automatically or through an active decision.
Why it matters for growth
Renewal is where retained revenue becomes visible on the books, and renewal rate is often the cleanest proxy for customer satisfaction in contract-based businesses.
Example
A company's annual contracts come up for renewal each anniversary, and the CS team starts the conversation 60 days ahead of that date.
FAQ
- What is Renewal?
- The point at which a customer's contract or subscription continues into a new term, either automatically or through an active decision.
- Why does Renewal matter for growth?
- Renewal is where retained revenue becomes visible on the books, and renewal rate is often the cleanest proxy for customer satisfaction in contract-based businesses.
- What is an example of Renewal?
- A company's annual contracts come up for renewal each anniversary, and the CS team starts the conversation 60 days ahead of that date.