Contract renewal
Contract renewal is the process of extending or renegotiating a customer agreement when it reaches its expiration date.
Contract renewal is the moment a customer agreement is due to expire and the two parties decide whether to continue, modify, or terminate the relationship. A high renewal rate is a strong indicator of customer satisfaction and product value.
Example: A SaaS company tracks all contracts expiring in the next 90 days and assigns a customer success manager to each account 60 days before renewal to discuss usage, address concerns, and negotiate the next term.
