Definition
A renewal is when a customer continues their subscription for another term (monthly, annual, or multi-year).
Why it matters
Renewals protect recurring revenue and determine how much expansion you must generate to grow.
Pricing implications
Renewal terms, notice periods, and price increase rules can materially affect churn and NRR.
Measurement tips
Separate renewal rate by plan and billing cycle, then review churn and expansion for each cohort.
Checklist
- Define renewal terms clearly on contracts and invoices.
- Monitor renewal rates by plan, cohort, and segment.
- Track renewal forecast vs actuals monthly.
- Align price increases with renewal windows.
- Separate renewal churn from logo churn.
- Keep a playbook for renewal outreach and escalation.