Renewal Management

Execute systematic renewal processes using health-based segmentation, proactive outreach, and risk mitigation to maximize retention.

When to Use This Skill

•Building renewal playbooks by segment
•Managing renewal pipeline
•Handling at-risk renewals
•Forecasting renewal revenue
•Optimizing renewal timing

Methodology Foundation

Based on Gainsight Renewal Management and SaaS Renewal Best Practices, focusing on:

•Health-based renewal approach
•Timeline-driven playbooks
•Risk mitigation strategies
•Expansion during renewal

What Claude Does vs What You Decide

Claude Does	You Decide
Creates renewal timelines	Discount authority
Builds health-based playbooks	Pricing decisions
Identifies renewal risks	Save vs. let go
Suggests save strategies	Contract terms
Calculates renewal forecast	Executive involvement

Instructions

Step 1: Segment by Health + Contract

Renewal Matrix:

Health	Contract Value	Approach
🟢 High + High	Expand + Multi-year
🟢 High + Low	Upsell
🟡 Medium + Any	Standard renewal
🟠 Low + High	Save priority
🔴 Critical + Any	Executive save

Step 2: Define Renewal Timeline

Standard Timeline (90-Day):

Days Out	Activity	Owner
120	Health check, flag risks	CSM
90	Renewal kickoff	CSM
75	Value review call	CSM
60	Proposal sent	CSM/Sales
45	Negotiation	Sales
30	Final terms	Sales
14	Signature push	Sales
0	Renewal close	Sales

Step 3: Build Health-Based Playbooks

Green Playbook (Healthy):

•Light touch, focus on expansion
•Lead with value summary
•Propose multi-year

Yellow Playbook (Monitor):

•Standard engagement
•Address any concerns early
•Secure commitment before term end

Orange/Red Playbook (At-Risk):

•Heavy engagement
•Executive involvement
•Save plan execution

Step 4: Calculate Renewal Forecast

code

Renewal Forecast =
  (Green × 95%) +
  (Yellow × 80%) +
  (Orange × 50%) +
  (Red × 25%)

Examples

Example 1: Renewal Playbook

Output:

code

## Renewal Playbook: 90-Day Process

### Healthy Customer (Health Score >75)

**Goal:** Renew with expansion or multi-year

**Day 120: Pre-Renewal Check**
- [ ] Review health score and trends
- [ ] Check expansion opportunities
- [ ] Prepare value summary

**Day 90: Renewal Kickoff**
- [ ] Send renewal notice email
- [ ] Schedule value review call
- [ ] Prepare ROI documentation

**Day 75: Value Review Call (45 min)**
Agenda:
1. Relationship check (5 min)
2. Value delivered review (15 min)
3. 2026 priorities (10 min)
4. Renewal discussion (10 min)
5. Next steps (5 min)

Script: "Based on [X value delivered], we'd love to continue our partnership. I'd like to discuss options for next year, including a multi-year agreement that could give you better terms."

**Day 60: Proposal**
- Standard or upgrade proposal
- Multi-year option (5-10% discount)
- Expansion options

**Day 45-14: Light Follow-Up**
- Procurement coordination
- Answer questions
- Minimal negotiation

**Day 0: Close**
- Expected close rate: 95%
- Expected expansion: 10-20%

---

### At-Risk Customer (Health Score <50)

**Goal:** Save the account, then renew

**Day 120: Risk Assessment**
- [ ] Deep dive on health issues
- [ ] Identify root cause
- [ ] Develop save plan
- [ ] Alert leadership

**Day 90: Save Plan Activation**
- [ ] Executive sponsor outreach
- [ ] Service recovery actions
- [ ] Address root causes

**Day 75: Executive Check-In**
- [ ] VP/Director involvement
- [ ] Commitment to resolution
- [ ] Timeline for improvement

**Day 60: Renewal Conversation**
Only if health improving:
- Acknowledge challenges
- Show commitment to success
- Flexible terms if needed

**Day 45: Negotiation**
Options to consider:
- Short-term renewal (6 months)
- Reduced scope/price
- Success-based terms

**Day 30: Decision Point**
If not improving:
- Prepare for potential churn
- Discuss graceful exit options
- Maintain relationship

**Expected Outcomes:**
- Save rate: 40-50%
- Full renewal: 25%
- Reduced renewal: 15%
- Churn: 50-60%

Example 2: Renewal Forecast

Input:

code

Q2 Renewals:
- 10 accounts, $1.2M ARR total

Health distribution:
- Green: 4 accounts ($500K)
- Yellow: 3 accounts ($400K)
- Orange: 2 accounts ($200K)
- Red: 1 account ($100K)

Output:

code

## Q2 Renewal Forecast

### By Health Segment

| Health | Accounts | ARR | Prob | Forecast |
|--------|----------|-----|------|----------|
| 🟢 Green | 4 | $500K | 95% | $475K |
| 🟡 Yellow | 3 | $400K | 80% | $320K |
| 🟠 Orange | 2 | $200K | 50% | $100K |
| 🔴 Red | 1 | $100K | 25% | $25K |
| **Total** | **10** | **$1.2M** | | **$920K** |

### Forecast Summary
- **Base Forecast:** $920K (77% of total)
- **At Risk:** $280K (23% of total)
- **Expected Churn:** $280K

### Scenario Analysis

| Scenario | Retention | ARR |
|----------|-----------|-----|
| Best Case | 90% | $1.08M |
| Base Case | 77% | $920K |
| Worst Case | 60% | $720K |

### Actions to Improve

**To reach 85% retention ($1.02M):**
1. Convert 1 Yellow → Green (+$20K)
2. Save 1 Orange account (+$100K)
3. Maintain Green at 95%

**Priority Actions:**
| Account | Health | ARR | Action |
|---------|--------|-----|--------|
| OrangeCo #1 | 🟠 | $120K | Executive save plan |
| OrangeCo #2 | 🟠 | $80K | Success intervention |
| RedCorp | 🔴 | $100K | Last-resort save or exit |

Skill Boundaries

What This Skill Does Well

•Building renewal timelines
•Creating health-based playbooks
•Forecasting renewal revenue
•Identifying save strategies

What This Skill Cannot Do

•Access your CRM data
•Make pricing decisions
•Execute renewal conversations
•Know specific customer dynamics

When to Escalate to Human

•Discount approvals
•Contract modifications
•Executive relationships
•Legal/procurement issues

References

•Gainsight Renewal Management
•SaaStr Renewal Best Practices
•ChurnZero Renewal Playbooks
•Totango Renewal Automation

Related Skills

•churn-prediction - Risk identification
•account-health - Health scoring
•expansion-signals - Expand at renewal
•qbr-preparation - Pre-renewal QBR

Skill Metadata

•Domain: Customer Success
•Complexity: Intermediate
•Mode: centaur
•Time to Value: 30 min per renewal, 2-4 hours for playbook
•Prerequisites: Health scores, contract data