🔁 Renewal Framing & Price Protection: Reduce Churn, Speed Approvals

Renewals are decisions about fairness and risk. When renewal terms are clear and predictable, procurement and finance approve faster and champions advocate harder. This guide covers renewal caps, price protection, scope clarity, and communication timing to reduce churn and friction.

🛡️ Price Protection

• Caps: 0–3% or CPI (lower of the two) for the same scope. Communicate caps in the first proposal, not at renewal time.
• Scope‑linked: Tie caps to defined scope; additional modules priced at the then‑current rate.
• Multi‑year: Offer 2–3 year terms with fixed pricing to reduce budgeting anxiety.

🧭 Scope Clarity

Define what’s included (users, data volumes, environments) and what triggers a re‑quote. Provide a simple “scope change” checklist to avoid surprises.

🕒 Communication Timing

• 60–90 days pre‑renewal: send a value recap (wins, adoption, incidents resolved) and the renewal draft with caps referenced.
• 30 days: confirm procurement/legal contacts and redline timelines.
• 14 days: final review call; summary email with next steps.

🧰 Renewal Language Template

“At renewal, the subscription fee for the same scope will not exceed the prior year’s fee by more than the lower of 3% or CPI. Additional modules purchased during the term renew at then‑current rates. Multi‑year options provide fixed pricing for predictable budgeting.”

📊 Metrics

✅ Checklist

❓ FAQ

Will caps limit revenue? Caps increase renewal probability and predictability; expansion comes from added scope and products, not surprise escalators.