For the majority of companies, contract renewals drive the greatest share of revenue, making the contract management process essential for continued growth and to avoid lost revenue. The SOFTRAX Revenue Management System (RMS) offers the industry’s most robust contract renewals functionality that works actively with even the most complex contracts and renewal processes. Contract renewal billings happen on time and for the appropriate revenue amount, including upticks and changes in the renewal rate. SOFTRAX RMS also allows businesses to provide a timely and clear communication channel on renewals to the customer. Most importantly, SOFTRAX RMS makes sure that companies do not miss out on revenue from contract renewals.
If you perform billing for recurring subscriptions, you can easily manage your renewals in the SOFTRAX Revenue Management System (or RMS for short).
Subscription renewals extend the term of the subscription, optionally apply a price uplift for the new term, and continue the revenue lifecycle in the SOFTRAX RMS.
Late renewals or customers failing to renew at the contractually agreed upon uplift amount can lead to significant revenue leakage during the renewal process. SOFTRAX RMS prevents this by ensuring contracts are set up for proper and timely renewals from the outset.
You can specify renewal options for the entire recurring subscription or specify different options for each line item.
You can set up the following renewal types:
Non-renewable, where after the term end date, the subscription or item is not renewed.
Renewable with notification, where the subscription has an end date, and you must renew it for another term.
The customer receives an email notification of the renewal with information about the new term and any uplifts. You can configure how many days in advance of the anniversary to send these renewal notice emails.
Perpetual, where it doesn’t need to be renewed and the subscription is evergreen.
You can choose whether to send your customer a notification near the subscription anniversary date with details of price changes and the new term. And configure when to send these notifications.
And the final renewal type: renewable with authorization. Where someone in your company must first review and approve the renewal within RMS, via a proforma, before it can be renewed. During this authorization, you can modify the subscription and send a new notification to your customer. Any changes will apply to the renewed term.
This is useful when you want to negotiate the renewal with your customer and potentially upsell additional products or services.
You can automatically apply price changes to renewed subscriptions, using uplift codes. This applies to fixed fee, user-based, and quantity-based items. You can increase prices by a percentage or by a set amount per product. And each item in a subscription can have a different uplift. You can do this manually or automate the process by mapping price changes to your incoming data.
With the SOFTRAX RMS task scheduler, you can fully automate the renewal process, so that renewal notices are emailed automatically, and subscriptions are renewed in a timely manner.
Want to learn more? Contact us at sales@softrax.com
With SOFTRAX RMS, contract renewal and contract lifecycle management are simplified, no matter how complex the agreement. SOFTRAX RMS is able to automatically generate lists of all contracts and subscriptions up for renewal as well as apply configurable renewal rules by date, product, location, or customer. The platform can handle contracts that renew automatically as well as those requiring a negotiated renewal agreement. SOFTRAX RMS can uptick at the greater of a fixed percentage as well as support co-termination of add-on products with full contract history. The platform can send proforma data to Salesforce so that the renewal can be negotiated in that system with data returned to SOFTRAX RMS post the renewal negotiation.
SOFTRAX RMS powers contract renewals to reduce revenue loss / leakage and allows quick access to the data needed for timely renewals. Companies can instantly see historical and future views of deferred and recognized revenue streams and easily follow new dollars, churn, and total renewal base for better insight into renewal revenue.
SOFTRAX RMS is a cloud-based SaaS solution that enables the best in contract renewal management through a robust software solution that easily integrates into existing ERP, CRM, SFA, tax automation, PSA, and GL systems.
SOFTRAX RMS puts upcoming renewals at the business’ fingertips in seconds. The platform allows for automated and ad hoc identification of contract renewal candidates and acts as a central repository for key contract renewal information. This removes the need for manual processes and spreadsheets to track and act on such data and provides a system to help with lifecycle management.
SOFTRAX RMS ensures all billing activity is always synchronized with the latest changes and amendments to a contract’s key elements. The system can automatically generate billing and renewal data as well as automate pricing for products based upon contractual terms and resetting of contract coverage dates.
SOFTRAX contract management platform provides seamless co-termination and synchronization, which enable the proration of subscriptions, setting a single renewal date. This co-termination and synchronization automatically calculate and apply appropriate adjusted fees based on the newly assigned term.
SOFTRAX RMS provides an intuitive, performant integration and workflow module that allows for simple or highly complex integrations with source (ERP, SFA, CRM, time tracking, fulfillment, and many more) and target (GL accounting systems) with ease. Additionally, with readily available REST APIs, companies can choose to establish direct connections using their existing integration technologies and tools.
SOFTRAX RMS ensures that renewal pricing is easily assigned and applied as contract renewals are processed, and it does that by capturing renewal data at the contract’s inception. For some contract renewals, the process will be highly automated, and the system will ensure the maximum possible amount is upticked. In other cases, the system will create data to allow a manual negotiation with the client to occur.
The platform automatically generates billing schedules and manages transactions over the customer lifecycle. Each subscription and order detail will be inspected for renewal eligibility based on pre-defined rules/policies. The renewal workflow will be applied on appropriate dates to identify candidates and start the renewal process. Approval workflows, audit trails, renewal notifications to customers, and tailored invoice presentations are all standard, packaged, features of SOFTRAX RMS contract renewals' functionality.
SOFTRAX RMS automatically processes billing schedules by policy/rules (also known as templates), removing manual processes on a transaction-by-transaction basis to increase efficiencies and decrease risk. This means no more spreadsheets, fewer manual touches, reduced potential for errors, and fully audited.
SOFTRAX RMS provides customizable invoices to make it easy to bill according to a customer’s needs, allowing a customer-first approach to renewal invoicing. Having an ability to tailor invoice presentations to meet customers’ needs is a hard requirement to ensure timely cashflow and customer satisfaction.
SOFTRAX RMS contract management provides extensive reports and dashboards to give accountants, auditors, and executives unparalleled visibility into past, current and future business performance. Real-time access to key KPIs and performance metrics provide significant value to end users via a highly intuitive user experience per the report and dashboard suite.
Many systems can handle initial invoicing events for contracts, subscriptions, and orders yet few can handle billing requirements for subsequent renewal events with customers. Whether it is an expiring subscription, maintenance/support renewal, term license, rental/lease, or any contract type, a billing system should have an ability to handle any expiration.
When processing renewal scenarios, it is important to first notify customers of upcoming and pending renewals with all appropriate term and pricing changes/updates applied. This allows the customer to review, respond, negotiate, and approve/reject the renewal. Following these activities, the renewal is invoiced which can be in full or according to a schedule as dictated by the contract renewal’s terms.
As subscriptions and orders are processed via contract creations in SOFTRAX RMS, pre-defined rules/policies set up by end users will be assigned to incoming transactions. A contract repository exists as subscription and order information is assigned a rule/policy that flags it as requiring renewal handling in the future. This repository will contain necessary information to identify the terms, dates, and pricing that should be used for upcoming renewals.
On a recurring basis, automated jobs will run renewal queries to identify eligible candidates up for renewal. (This can also be done in the user interface by end users.) Renewal notifications will be generated and delivered to customers for review and approval. Upon received approval, the renewal candidates will be invoiced thereby closing that renewal cycle for the selected contract records.
Yes. Source systems such as CRM, SFA (such as Salesforce), ERP, contract management process tools, or any source system that holds required transaction information can feed data into SOFTRAX RMS for contract renewal purposes. As contract renewals occur in the application, eventually resulting in accounting entries, a summary journal entry will be generated to capture the financial impacts. That summary journal entry then gets sent to a company’s target account system (typically a General Ledger or ERP system).
There are many benefits to using SOFTRAX RMS, including:
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"The SOFTRAX suite of products is uniquely positioned to offer the flexibility to handle the various forms of complex billing and revenue recognition we require.”
John Mathison VP of Operations