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Tutorial/Lifecycle Manager

Renew Subscriptions

Renewals play a crucial role in the success of any subscription-based business. They not only ensure stability and predictability but also serve as a key indicator of customer satisfaction.

Renewal strategies can vary significantly depending on factors such as sales cycle length, subscription term duration, and the nature of the business. For companies adopting a Product-led Growth sales approach, customer renewals are often automated, simplifying the process. Conversely, companies with longer sales cycles and subscription terms require a Renewal Opportunity to be created as soon as a subscription is initiated. This enables effective tracking and measurement of the renewal opportunity pipeline in terms of Annual Recurring Revenue (ARR), Total Contract Value (TCV), and Annual Contract Value (ACV). However, updating these metrics manually becomes a challenge when there are mid-term changes to the subscription, as the ARR, TCV, and ACV quickly become outdated.

To address these complexities, Nue supports three distinct renewal scenarios. You can select one or more of these scenarios that best align with your specific business requirements.

Manual Renewal with Upsell/Downsell Options: This scenario is ideal for companies with relatively short sales cycles and subscription terms (e.g., one year or less). Here, Customer Success Managers take charge of renewing one or more customer subscriptions and have the option to upsell or downsell upon renewal.
Auto Renewal: In this scenario, subscriptions are automatically renewed until customers decide to cancel. It is particularly suitable for month-to-month subscriptions or those that commonly renew without significant changes.
Renewal Opportunity Process: Companies with long sales cycles and subscription terms (e.g., one year or more) can benefit from this scenario. As soon as a subscription is created, a Renewal Opportunity is generated in Salesforce to capture any changes (such as upsells, downsells, or reconfigurations) that occur during the subscription term. Nue takes care of automatically synchronizing the metrics (ARR, TCV, ACV) back to the opportunity, ensuring that the pipeline reflects the most up-to-date information. When the renewal eventually takes place, it is based on the latest version of the subscription.

By leveraging these renewal scenarios offered by Nue, you can streamline your renewal processes and maximize the effectiveness of your subscription business.

Configure Renewal

Renewal related settings are found in Nue → Settings → Renewals. Please refer to this document for detailed instructions.

In general, there are 2 important configurations:

Auto Renew
- Determines if auto-renew is enabled. It can be configured at the organization level, and be overridden at the account, quote / order, and line-item level.
Renewal Term
- Determines the length of the renewal subscription term. It can be configured at the organization level, and be overridden at product or quote/order line-item level

Auto Renew

Organization-level Setting

If Auto-Renew is enabled at the organization level (Nue → Settings → Renewals), a nightly job will be scheduled to auto renew subscriptions. Optionally, a renewal opportunity and/or quote can be created so that the ARR, CMRR, TCV and ACV are rolled into the opportunity pipeline for the renewals.

Account-level Override

Users can override the Auto Renew setting at the account level. For example, if auto renew is enabled at the organization level, but a customer opts out for auto-renewal, the sales rep can create an account with Auto Renew disabled.

The following is the definition of the Auto Renew field in Account object:

Label	API Name	Description
Auto Renew	AutoRenew	Indicates if products and services this account subscribes are auto-renewed by default. Available values are: Yes All recurring products or services this account subscribes to are automatically renewed, regardless of the Auto Renew configuration of individual products or services. No All recurring products or services this account subscribes to are not automatically renewed, regardless of the Auto Renew configuration of individual products or services. Default to Subscription Configuration Whether products or services that this account subscribes to is determined by the Auto Renew configuration of individual subscriptions or products. The default value is "Default to Subscription Configuration".

Label

API Name

Description

Auto Renew

AutoRenew

Indicates if products and services this account subscribes are auto-renewed by default.

Available values are:

Yes
- All recurring products or services this account subscribes to are automatically renewed, regardless of the Auto Renew configuration of individual products or services.
No
- All recurring products or services this account subscribes to are not automatically renewed, regardless of the Auto Renew configuration of individual products or services.
Default to Subscription Configuration
- Whether products or services that this account subscribes to is determined by the Auto Renew configuration of individual subscriptions or products.

The default value is "Default to Subscription Configuration".

Quote-level or Order-level Override

At the quote or order level, users have the ability to override the Auto Renew setting.

Admin users have the option to configure the Auto Renew field within the Quote Layout or Order Layout. When a sales representative generates a new quote or order, the Auto Renew field will initially adopt the account's default value. However, the sales rep can modify the Auto Renew value as needed.
Moreover, when a product with a Recurring revenue model is added to the quote or order, its Auto Renew value will automatically inherit the value specified within the quote or orde

Line-level Override

At the quote line item or order product level, users have the flexibility to override the Auto Renew setting.

Admin users can incorporate the Auto Renew field into the Quote Line Item or Order Products related list within the Salesforce Quote or Order Layout. When a product with a Recurring revenue model is included in the quote or order, its Auto Renew value will be initially set to the value specified within the quote or order.
Users have the ability to override the Auto Renew field value directly in the line editor by performing inline editing of the field. This allows for convenient customization of the Auto Renew setting at a granular level for each individual quote line item or order product.

Renewal Term

Organization-level Setting

Renewal term can be configured at the orgnaization level with the following options:

Same as the current subscription term
- For example, if the current subscription term is 24 Months, then the renewal term will be 24 Months as well
A specific term, e.g. 12 Month

The organization-level renewal term can be configured at Nue → Settings → Renewals.

Product-level Override

The renewal term can be configured for a specific product or bundle.

When a user creates a new product or bundle, selecting the Revenue Model as 'Recurring' will provide the option to configure the Default Renewal Term, along with the Default Subscription Term. Both fields will initially adopt the values set at the organization level in the system settings. However, users have the flexibility to override the default values with specific ones.

For instance, while the default renewal term for all subscriptions may be set to 12 months, a particular product might require a month-by-month renewal. In such cases, the user can modify the Default Renewal Term for that specific product to 1 month, ensuring that its renewal term deviates from the organization-wide default.

Line Level Override

At the line item level, users have the ability to override the Renewal Term.

For instance, when a product or bundle with a default 12-month renewal term is added to the Line Editor, users can modify and override the Renewal Term to a different value, such as 24 months. This can be done conveniently through inline editing, allowing users to customize the renewal term for specific line items according to their requirements.

Next, we are going to look at 3 user scenarios in details.

#1. Manual Renewal with Upsell/Downsell Options

Renew a Subscription

Scenario: Subscriptions are not set to auto renew. Sales Reps or Customer Success Managers want to renew subscriptions manually while having the options to upsell or downsell.

For example, customer Smart Revenue has a 12-month subscription of VROOM PRO, which contains 2 add-on (children) subscriptions. A sales rep wants to renewal this subscription manually, and at the same time upsell 10 new user licenses.

You can follow the steps below to implement this scenario.

Login to Salesforce, and navigate to Nue on Salesforce
Navigate to Accounts, select the account, and click Manage Customer Lifecycle to navigate to the Lifecycle Manager
Navigate to Subscriptions tab, and search for the subscription using Subscription Number or the product name

In the following screenshot, the subscription starts on 05/09/2023 with a 12-month subscription term.

Click Renew action
In the Renew popup, the default renewal term will be displayed (e.g., 12 months). You can override the default subscirption term. Optionally, you can select the checkbox to add or reduce units upon renewal.

Click Confirm. The renewal request (as well as the update quantity change request) will be added to the change cart.
Checkout the Change Cart into a quote or an order as usual
In the Line Editor of the change quote or order, you can see the following:

There is a Renewal change line and an Update Quantity change line for the bundle subscription, as well as its children subscription that is configured to Link with Bundle Quantity
For children subscriptions that are not configured to Link with Bundle Quantity, they are only renewed, but there is no quantity change.

Essentially what this means is that the bundle subscription as well as all its children subscriptions are renewed with quantites changed.

After the opportunity is close-won, or the order is activated, the subscription will be versioned. The newer version will contain the renewal, as well as the upsell or downsell if you have selected the option.

Early Renew

Companies sometimes would like to process early renewals.

EXAMPLE

Customer Smart Revenue has a subscription that runs from 07/01/2024 to 06/30/2025. On 10/01/2024, the sales representative wants to renew the customer's subscription for another year. While one option is to perform an Update Term change to extend the subscription by 3 months, they would prefer the Change Type to be "Renew" with a 12-month renewal term, treating it as a full renewal.

For instance, consider customer Smart Revenue, whose subscription runs from 07/01/2024 to 07/31/2024. On 10/01/2024, the sales representative wants to renew the customer's subscription for another year. While one option is to perform an Update Term change to extend the subscription by 6 months, they would prefer the Change Type to be "Renew" with a 12-month renewal term, treating it as a full renewal.

Enable Early Renewal

Admin users can enable early renewal by following these steps:

1. Log in to the Nue App and go to System Settings.
2. In the search box, type "Early renewal".
3. Under the Renewals section, toggle on the "Allow Early Renewal" option.

Process Early Renew

Sales users can process an early renewal by following these steps:

1. Log in to Salesforce and open the account that requires early renewal.
2. Click on 'Manage Customer Lifecycle,' then navigate to the "Subscriptions" tab.
3. Select the 'Renew' action for the subscription that needs to be renewed early.

Optionally, users can add more quantity upon renewal. Please note that the entered Early Renewal Date cannot be a later date than the Subscription Start Date.

4. Click "Add to Cart". The early renewal request will be added to the cart.

5. Checkout the cart into a quote or an order.

In the Line Editor, you'll notice that each early renewal subscription includes two change lines:

1. Co-term: The current subscription term is adjusted to end one day before the Early Renewal Date.
2. Renew Subscription: The subscription is renewed starting from the Early Renewal Date.

As a result, in this example, the subscription is renewed on 10/01/2024 and has a subscription term lasting until 09/30/2025.

If the subscription is a bundle, the early renewal will apply to all child or nested child subscriptions within the bundle.

Renew Multiple Subscriptions

Scenario: A customer has multiple subscriptions up for renewal. They would like to renew subscriptions in batch.

To implement this scenario, you can follow the steps below:

Login to Nue on Salesforce
Navigate to Accounts, and select the customer you would like to renew
Click "Manage Customer LIfecycle" to navigate to the Lifecycle Manager
Click 'Subscriptions'
Click 'List View'
- ♥Tip♥ On the List View, you can perform batch actions to multiple active subscriptions of the customer
Sort the subscription by Subscription End Date by clicking on the column header in descenant order, so that the subscriptions up for renewals are displayed on top rows
Check the checkboxes of the subscriptions you want to renew. Click 'Renew' in the batch actions dropdown.
Specify the renewal term in the modal popup, and click 'Confirm' to add the renewal requests to the Change Cart.
Click on the 'Change Cart' and review the renewal changes.

Click 'Checkout' to check out the change requests into a quote or an order

Upon checking out, the renewal changes will be saved into the quote or order.
Finalize the quote and activate the order. Upon activation, all subscriptions will be renewed. You can see the latest subscription status in the Lifecycle Manager.

#2. Auto Renew

Scenario: Subscriptions are set to renew automatically, which is particularly common in month-to-month subscription models. The subscription will continue to renew until the customer actively cancels or requests to opt out of auto-renewal.

With Nue, subscriptions marked as 'Auto Renew' will undergo automatic renewal. Each night, any subscription eligible for auto-renewal will be automatically updated with a new end date, and the subscription version will be incremented.

For example:

Monthly subscription with a term date of 3/1/2023 - 3/31/2023 and Subscription V1
Auto renew will update the end date to 4/30/2023 and update the version to Subscription V2

There are several settings that can be enabled with Auto Renew. These settings are found in Nue → Settings → Renewals. Please refer to this document for detailed instructions.

Renewal Notification

Nue can send out a customer notification email on their upcoming renewal. This setting will allow you to indicate the number of days prior to renewal to send out the notification.

The email template can be found in Salesforce → Settings → Classic Email Templates → Auto Renew Email Template. Using Salesforce, you can modify this email template.

If you do not want to send out an email notification, set the value to 0 days.

Automated Renewals

When to auto renew: With automated renewals, you can decide how many days prior to the subscription end date that you want the subscription to be renewed.

For example, 30 days before the subscription end date, Nue will automatically renew the subscription (update end date and increment the subscription version).

Generate a renewal quote and opportunity: If you want Nue to create a renewal quote and renewal opportunity, you can indicate the number of days prior to the subscription end date to generate this renewal quote and opportunity.

The renewal quote gives your team a chance to make changes to the subscription using the quote. For example, you may want to update quantity or add new products at this time.

If this renewal quote is still open at the time of auto renewal, then Nue will automatically renew the subscription based on the current subscription products. However, if the renewal quote is updated and finalized into an order before the auto-renewal occurs, then the automatic renewal process skips the subscription since it would have already been renewed.

Let’s look at an example.

Subscription has a term of 1/1/2023 - 12/31/2023 with a Subscription v1.
On 12/1/2023, Nue will automatically create a renewal quote and renewal opportunity.
Customer Success (CS) Manager will be able to make changes to this renewal quote, in addition to renewing the subscription.
CS updates the renewal quote to increase the license quantity. The renewal quote is then saved.
Following the Order creation process, the order activation will update the subscription.
The result is a subscription term for 1/1/2023 - 12/31/2024 with a Subscription v2.

Since the subscription is now renewed, the auto renewal process (which is set to renew two days prior to the subscription end date) will bypass the subscription since the end date has been extended to 12/31/2024.

If there are no changes on the renewal quote, you can opt to close the renewal opportunity manually.

#3. Renewal Opportunity Process

Scenario: Renewal Opportunity is created for subscriptions that are not set to auto-renew. These Renewal Opportunities need to be automatically updated so that any subscription changes that occur are reflected in the Renewal Opportunity.

A common practice in many sales organizations is to automatically generate a Renewal Opportunity as soon as a New Business Opportunity is Closed/Won. With Nue on Salesforce, the Subscriptions associated with the customer will be linked to the Renewal Opportunity. This association allows for the automatic updating of key fields such as Total Total Contract Value (TCV) and Total Annual Contract Value (ACV) whenever there are mid-term changes to the subscription.

Moreover, the Opportunity also includes formulas related to Annual Recurring Revenue (ARR) that are automatically updated. These formulas include metrics such as Renewal ARR, Renewal Lost ARR, Renewal Target ARR, and Renewal Won ARR, providing a comprehensive view of the renewal performance.

Opportunity Subscription

The Renewal Opportunity record contributes to a company’s pipeline reporting (ARR). Therefore, Nue ensures that the Renewal Opportunity's key metrics, such as ARR, TCV, and ACV, are updated whenever there are changes to the associated subscription.

To establish this link and enable the synchronization of data, Nue introduces a custom object called 'Opportunity Subscription'. This object serves as the bridge between the Renewal Opportunity and the corresponding Subscription.

Assumptions

There are two important assumptions to consider when using this feature in Nue on Salesforce.

The renewal opportunity is typically created using a Salesforce flow defined by the customer.
It is assumed that there is only one open Renewal Opportunity (with the record type set as 'renewal') for an Account at any given time. Additionally, all modifications to the subscriptions are made using the Customer Lifecycle Manager, ensuring accurate and centralized management of subscription changes.

Renewal Opportunity

The Opportunity object will have the following fields specifically created for the Renewal Opportunity.

ARR (Nue) - The ARR field is a roll-up summary of the ARR on all the Subscriptions. It is updated each time there is a subscription change.
Renewal Target ARR (Nue) - This field is the same as the ARR (Nue) amount, and will represent the target renewal ARR.
Renewal Won ARR (Nue) - The Total ARR that is actually renewed. This is $0 until the Renewal Opportunity is Closed/Won.
Renewal Lost ARR (Nue) - The total value of the loss. This is $0 until the Renewal Opportunity is Closed/Won or Closed/Lost. If the deal is discounted or dropped in value, the Lost ARR shows the Target ARR minus Won ARR.
Total ACV (Nue) - This is a roll-up summary of the total ACV of all the Opportunity Subscriptions.
Total TCV (Nue) - This is a roll-up summary of the total TCV of all the Opportunity Subscriptions.