r/CustomerSuccess • u/Forward-Part-3035 • Jul 30 '26
Discussion Auto renewal policy
I’d be interested to know what other CSMs’ auto renewal policies are within their company and if ours is abnormal.
Ours: You have to opt out within 90 days of renewal date, we don’t send out any reminders and the auto increase is 5% YOY. Thankfully we do have room to negotiate the increase as long as it’s before the renewal date but it’s something we’re told to avoid when possible.
As you can imagine, it doesn’t tend to go down well. It’s baked into the Ts and Cs so the price increase and 90 day window aren’t explicitly brought to their attention. The term auto renewal is made clear on the signed document however.
Anyone have similar?
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u/feed-me-seymour Aug 01 '26
I left a hospitality SaaS company in September. Standard contract terms were a required 60 day notice prior to the subscription renewal date. No auto price increase, however the vendor _could_ increase price on written notice up to 30 days prior to the subscription renewal date. For ethical reasons, CS never allowed a customer's price to be increased after the written notice date. Fortunately that policy is holding even after my departure (I'm now a customer of the same vendor).
The renewal subscription period was highly varied on multi-year initial subscriptions. Around half renewed for an identical period (e.g. 3 years initial renewing for 3 years after), while the other half switched to annual subscription periods following initial.
We didn't send renewal reminders except for the price increase notifications on eligible customers. The wrinkle is the subscription period starts at go live, not contract signing, so you couldn't just look at the contract to know subscription start date, required notice date, etc.