By Logan Monday
Renewal Automation: The Ultimate Customer Success Tool
In the B2B space, renewal automation has become one of the most important tools for customer success. Why? Because it allows customers to simply and automatically renew their subscription to your service, without having to go through the hassle of manually renewing it themselves.
Not only does this make things easier for your customers (and thus more likely that they'll renew), but it also frees up your customer success team to focus on more nuanced deals. Automating renewals is a win-win for everyone involved.
How Renewal Automation Works
Renewal automation isn’t foreign to the B2B space, but how the execution paths come in a variety of different ways. The most important thing is that it's done in a way that's convenient and easy for your customers. If you're thinking renewal automation is the same as auto-renewal then you’re off track. We mentioned this in a previous post: Are Renewal Automation & Auto-Renewal the Same?
Here are four of the most immediate benefits:
This is probably the most common method of renewal automation. With this method, customers are automatically billed on a regular basis for the renewal. This way, they don't have to manually renew their subscription each time it comes up; it's taken care of automatically. This greatly benefits your baseline revenue but doesn’t increase your labor costs.
Increased Customer Lifetime Value (CLV)
By automating and streamlining your customers' renewals you increase the likelihood of successful renewal, increasing their customer lifetime value. The longer a customer remains subscribed to your service, the more they will spend on your product or service over time. Another way automating renewals helps increase customer lifetime value is by reducing the amount of passive churn.
Increased Revenue Per User
By automating your billing, you can increase your revenue per user. Automation decreases input errors, reducing costs, and allows you to focus on managing your renewals with existing customers. That focus allows you to improve their customer experience, increasing their likelihood of renewing.
Encrypted Security Compliance
If you want to remain GDPR compliant, you should ensure that all data collected by your company is secure. This includes your customers' sensitive subscription data. A good way to do this is through encryption. With an automated solution, you can encrypt sensitive information associated with subscriptions, thus ensuring it doesn’t fall into the wrong hands.
Effectively managing subscriptions in the B2B space is a major challenge, with great benefits, for growth-oriented businesses. Cleverbridge has helped hundreds of SaaS businesses by automating their renewals, and other sales processes. We allow our clients to focus on their revenue growth, while we do the heavy lifting in the background.
Interested in finding out how we can empower your revenue growth and automation without additional headcount? Click to learn more.