Renew Subscriptions

renewals are arguably the most critical — and most complex — part of the subscription lifecycle in a modern business they can take many forms auto renewals with uplift pricing, renewals with upsell or downsell, true ups, early renewals for co termination, or upgrades scheduled at renewal time 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becomes a challenge when there are mid term changes to the subscription, as the arr, tcv, and acv quickly become outdated to address these complexities, nue supports three distinct renewal scenarios you can select one or more of these scenarios that best align with your specific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 https //docs nue io/renew subscriptions#zk0nb 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 renew https //docs nue io/renew subscriptions#2vyhm 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 https //docs nue io/renew subscriptions#czjd4 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 lifecycle manager settings docid\ pp71j9mmdquisyeunij8l for detailed instructions in general, there are 3 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 price uplift on renewal determines if prices have to be adjusted for subscriptions on renewal the subscription filters and uplift price tag can be configured at the organization 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 when auto renew is disabled when auto renew is enabled 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 label api name api name description description auto renew autorenew the default value is "default to subscription configuration" 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 available values are indicates if products and services this account subscribes are auto renewed by default 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 price uplift on renewal revops managers often want to ensure that price of certain products is uplifted by x% when subscriptions are renewed (both manual or auto renewal) organization level setting a price adjustment on renewal can be configured at the organization level using the following options price uplift subscription filter setup filter configuration to determine which susbcriptions would be applicable for the price adjustment from all subscriptions eligible for renewal users can define filters using fields from subscriptions, as well as related objects such as customer, billing account, and product for example “apply a price uplift to subscriptions activated before 01/01/2024 ” “enforce a price uplift for customers created before 01/01/2024 ” “apply a price uplift to subscriptions tied to products in the ‘video conferences’ category ” uplift price tag a discount tag can be applied to subscriptions satisfying the filtering criteria, which would determine how the price would be adjusted on renewal a customer has auto renewal setup however they would like to apply a price uplift based on different criteria to different accounts login to nue navigate to nue → settings → renewals toggle on the ' adjust price on renewal' setting click on the filter button and add criteria as shown, then save the filter settings setup the discount tag as shown below and setup the uplift as per need, then save it now when the auto renewal job is run it will pick up all the subscriptions due for renewal, filter the ones satisfying above criteria and apply 10% uplift in price accordingly \#1 manual renewal with upsell/downsell options renew a subscription 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 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 co term the current subscription term is adjusted to end one day before the early renewal date 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 a customer has multiple subscriptions up for renewal they would like to renew subscriptions in batch 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' 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 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, a possible auto renewal configuration is 30 days before the subscription end date nue will automatically renew the subscription (update end date and increment the subscription version) for the next term 30 days before the end date to turn on auto renew, go to nue → settings → renewals and toggle on auto renew once auto renew is enabled, additional options will appear please refer to lifecycle manager settings docid\ pp71j9mmdquisyeunij8l for detailed instructions 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 example case 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 nue also allows users to configure options to decide if and when which renewal quotes would be finalized into active orders & renew the subscriptions this can be done based on quote being 'primary' or not status of the quote accepted, in review or approved or done manually scenario during the auto renewal process, a revops manager may want renewal quotes and opportunities to be auto generated but want manual control over finalizing them into orders this would allow sales reps to manually close/won the renewal opportunities, potentially after validation of the renewal quotes configure this as follows login to nue navigate to nue → settings → renewals uncheck the "renew auto renewed subscriptions x days before their subscription end date" make sure the "automatically generate renewal quotes y days before their subscription end date" is selected so y days before, the auto renewal job would pick up the subscriptions due for renewal and create renewal quotes & opportunities however, there would be no activation into orders unless manually done so by reps on salesforce scenario 2 a revops manager doesn't want auto generated non primary renewal quotes to be finalized into active orders upon automated renewal, if they haven't been approved configure this as follows login to nue navigate to nue → settings → renewals check the "renew auto renewed subscriptions x days before their subscription end date" make sure the "automatically generate renewal quotes y days before their subscription end date" is selected check the "finalize renewal quotes into active orders when they reach the status" and select 'approved' from the status drop down check the "finalize renewal quotes only if they are primary quotes" so x days before subscription end date, the auto renewal job would pick up the subscriptions due for renewal, check if renewal quotes are primary and 'approved' if these conditions are satisfied the orders will be automatically be finalized and corresponding subscriptions will be renewed generate a renewal quote & 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 scenario you can also opt to generate unique renewal quotes/orders for each top level level subscription instead of all renewals being a part of a single quote/order this can be configured as follows login to nue navigate to nue → settings → renewals check the "generate one quote or order for each top level subscription upon renewal" let’s look at an example an order has 3 subscriptions sub1, sub2, sub3 & a term of 1/1/2023 12/31/2023 during the auto renewal process, the auto renew job picks these subscriptions up for renewal on 12/1/2023 instead of grouping these subscriptions into one renewal quote or order, 3 different renewal quotes or orders are generated containing the renew change line items of the top level subscription and its children subscriptions each quote or order generated will have a new opportunity created, where the quote is set as the primary quote of the opportunity this enables simplified tracking of individual subscription renewal for financeops & also empowers them with more control over the renewal process auto renewal status when the auto renewal job runs, both failed and successfully renewed records will be stored in the auto renewal status docid padhf0czdjypqf km6m5 object, enabling the creation of detailed auto renewal reports admin users can configure the system to automatically purge auto renewal status records after a specified period this helps maintain a clean database while ensuring the auto renewal process remains unaffected steps to configure login to nue app, and navigate to settings, and search for automated renewals locate the option purge auto renewal status records after months set the retention period enter the desired number of months (default is 6) the update will be automatically saved the system will now purge records older than the specified period after each auto renewal job any failures in the purge job will not affect the auto renewal process \#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 a new field renewal opportunity has been introduced on the subscription object admin users can use a flow to set the renewal opportunity field upon subscription creation during the auto renewal process, when renewal opportunity has a value, nue will not generate a new renewal opportunity the generated renewal quote will be associated with this renewal opportunity instead