The Hidden Cost of Manual Renewals - Why Automation is No Longer Optional
David Pinto | Principal Consultant | RenewalsHub
October 2024
Renewals are the foundation of predictable, scalable growth - yet many companies still manage them manually, leading to inefficiencies, churn and lost revenue.
In today’s digital first, data-driven landscape, companies that fail to automate their renewals process are putting their revenue at risk. In this Insight, we explore the hidden costs of manual renewals, why businesses must move towards automation and how progressing through the RenewalsHub Renewals Maturity Model - part of the broader RenewalsHub Renewals Transformation Framework™ - can accelerate your maturity. Not sure where you stand? Try our free 2-minute Renewals Maturity Self-Assessment to get an instant snapshot.
The Hidden Costs of Manual Renewals
Many businesses assume that renewals should be a simple, straightforward process; just send a reminder and get the customer to sign on for another term. In reality, renewals opportunities are complex and full of risks when managed manually.
Here are five common challenges organizations face when managing renewals manually:
1. Missed Renewal Opportunities & Revenue Leakage
One of the biggest problems with manual renewals is that it’s easy for customers to fall through the cracks.
Contracts expire without proactive engagement, leading to unintended churn
Teams forget renewal dates, especially in high-volume businesses
Customers don’t receive timely reminders or a structured renewal process
SOLUTION: Automation ensures every renewal is tracked, every customer is engaged on time, and no contract falls through the cracks.
2. Reactive vs. Proactive Renewals: The Churn Risk
Most companies only engage customers when a renewal deadline is approaching. This reactive approach leads to:
Last-minute churn risks – If the customer isn’t seeing value, it’s too late to fix it before the contract ends
Unprepared procurement teams – If the renewal process starts too late, customers might not have time for budget approvals
Lost expansion opportunities – If no one engages customers proactively, the chance to upsell or expand is missed
SOLUTION: Automation triggers early renewal outreach (90-180 days before expiration), ensuring proactive engagement and value reinforcement long before renewal discussions begin.
3. Inefficient, Time-Consuming Processes
Renewals teams spend countless hours on manual, repetitive tasks like:
Searching for renewal dates in spreadsheets
Chasing down contracts and approvals
Manually sending renewal reminders
Generating quotes manually instead of auto-renewing contracts
For a company managing hundreds or thousands of renewals, this process is unsustainable.
SOLUTION: Automating renewals workflows frees up time, reduces operational burden and allows teams to focus on high-value customer conversations instead of administrative work.
4. Lack of Visibility & Poor Forecasting
Without automation, renewal data is often scattered across multiple systems; CRM, customer success platforms, finance tools, spreadsheets, etc. This fragmentation leads to:
Inaccurate forecasting – Leadership lacks real-time visibility into renewal rates
Inconsistent reporting – It’s difficult to track renewal performance across teams
No clear accountability – Sales, Customer Success and Renewals teams often struggle with ownership
SOLUTION: An AI-driven renewals platform centralizes renewal data, automates reporting and provides real-time renewal forecasting so leadership can accurately predict revenue.
5. Poor Customer Experience & Higher Churn
A disorganized, last-minute renewal process creates a frustrating experience for customers.
Late engagement - Customers feel like an afterthought
Generic outreach - No personalization, making renewals feel transactional
No clear value communication - If a customer doesn’t understand their ROI, they’ll question why they should renew
SOLUTION: An automated renewals engine personalizes outreach, reinforces value and ensures a smooth, customer-centric renewal process.
The Business Impact of Renewals Automation
Organizations progressing through the RenewalsHub Renewals Maturity Model and adopting renewals automation achieve significant efficiency and revenue improvements:
40 - 50% Reduction in Churn - Early engagement and proactive value reinforcement prevent last-minute churn
70 - 85% Reduction in Manual Work - Automated workflows eliminate repetitive, administrative tasks
More Accurate Forecasting - AI-driven insights improve renewal pipeline visibility
Higher Customer Retention & Expansion - Renewals automation enables seamless upsell and cross-sell opportunities
How to Build a Scalable Renewals Engine with Automation
Implement a Predictive Renewals Engine:
Integrate automation with CRM, finance and customer success systems - key components of the Renewals Engine - to create a unified operational layer.
Use Predictive Analytics to Identify At-Risk Customers:
Automate churn prediction using product usage data, engagement metrics and customer feedback.
Automate Renewal Reminders & Workflows:
Set timely renewal outreach (90-180 days before expiration) to ensure proactive management.
Align Sales, Customer Success & Renewals Teams:
Automate ownership and workflow routing across Process & Workflows, People & Roles and Coverage Strategy - all core elements of the Renewals Engine.
Leverage Renewals as Growth Opportunities:
Use predictive automation to identify and act on cross-sell, upsell and contract expansion opportunities.
Ready to Unlock Predictable Renewals Growth?
RenewalsHub helps you automate renewals, identify expansion opportunities and scale customer lifetime value through the RenewalsHub Renewals Transformation Framework™, including the Renewals Maturity Model, Renewals Strategy Lifecycle and Renewals Engine.