Renewals Process (do you sign an agreement or just send an invoice)

I am really curious about how many companies have a defined renewal process where a customer has to sign an agreement to continue their services. Basically, if they don't sign, an invoice never gets created, and they get shut off after their renewal date.

Or do you just send them an invoice to be paid without an agreement, as they already agreed to the terms when they purchased the software? How does your Accounts Receivable handle that, as then any potential $ needs to be tracked, rather than just the ones that signed?

Or do you have a hybrid option? Send a renewal, but if not declined, then an invoice is sent 60 days prior to renewal?

Any input or timelines you are all using would be helpful!

Answers

  • Steven ForthSteven Forth Managing Partner Founding Partner | Expert ✭✭✭

    We are improving our process on this and are making it an important swimlane in our customer journey map. As our average subscription is reasonably large, about $70,000 it is important to have a good process for this where value is being communicated, delivered and validated each step of the way.

    We would not invoice without an agreement.

    For standard renewals a 60 day process should be enough and more than fair.

    For more complex of contentious deals I would want to have at least 90 days.

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