November 21, 2023

Save Time and Avoid Service Interruptions: Outsource Your Contract Renewal Management

The end of the year is creeping up, which means contract renewal season is upon us! Unfortunately, contract renewals can be accidentally forgotten and procrastinated upon if they’re not properly tracked. 

Neglecting contracts can lead to: 

Safe to say, letting contracts fall by the wayside is a significant wasted opportunity. After all, retaining clients should be at the top of your business growth strategies, and well-oiled contract renewal management greatly helps you keep clients happy.

Additionally, a thorough contract renewal process gives you insights and time to focus on your most valuable accounts and potentially grow them. Below, we’re sharing some key methods to keep track of contracts and have renewal discussions promptly—and why outsourcing this essential task to an inbound call center is often the best strategy.

Research Organization & Technology Options

The first step toward an effective contract renewal strategy is keeping track of renewal dates and thorough documentation throughout the contract’s lifecycle. This means: 

Storing and monitoring contract renewals manually can become disorganized and cumbersome, which is where a contract management software, or contract lifecycle management (CLM) platform, comes in. This essential B2B tool provides:

As with any small business technology, contract management software still requires work and management from your employees. If you invest in a CLM, you will need to: 

Technology for contract renewals

Stay Ahead of Contract Renewal Dates With Proactive Alerts

Being proactive is crucial to establishing an effective contract renewal process. This means discussing contracts with your customers well before the renewal date. Early action will allow time for the customer to request any changes or ask questions. 

Cutting it too close to their contract expiration date—even a few weeks before—could be too late. Your client might have already had time to research and decide on another option if they haven’t heard from you. 

To take a proactive approach to contract renewals, you’ll first need to invest in a contract management system, as discussed above. CLM features like alerts, tracking, and reporting capabilities will empower your team to stay on top of renewals. Then, you can prepare for contract renewals by:

And this goes for accounts of ALL sizes. Yes, your larger customers are who you may prioritize upon initial thought, but don’t forget about smaller clients—even small monthly maintenance renewals can add up in annual revenue.

A woman following up  about a contract auto renewal

Weigh Out the Benefits of Outsourcing

By now, you understand that managing this process in-house—even with the right technology—entails heavy lifting from your customer service and sales teams.

That’s why outsourcing contract renewals is the easiest and most cost-effective option! Partnering with an inbound call center that does this work day in and day out allows you to implement automatic contract renewals. This is an agreement in which a contract renews automatically after a certain period unless one of the parties takes action before the renewal date. 

Automatic contract renewals have their pros and cons. On one hand, they offer:

On the other hand, automatic renewals also require oversight—just because they’re automatic doesn’t mean it’s a set-it-and-forget-it situation. Plus, they can create friction for your business and customers by:

By outsourcing contract renewal management, however, you can ensure:

Even with top-of-the-line contract management technology and automation, contract renewals are too important to neglect. Yet, for many businesses, they are too significant and expensive of an undertaking for their internal teams. Considering the time and cost involved, many companies find outsourcing the best option.

Shaking hands about contract renewal process best practices

Final Thoughts on Contract Renewal Success

As we approach contract renewal season, you may be wondering how to maximize revenue from your existing clients. You can start by:

Contract renewals are a critical piece of your company’s growth. However, we understand that the whole process can be intimidating. So, if your team needs a hand in staying on top of it all, learn more about our contract renewal services today to get started. Our team will happily take this burden off your plate while helping you maximize revenue from your existing clients!

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