Renewal

When an existing customer continues their subscription or contract for another term. The moment recurring revenue is either retained or lost.

Why it matters

In subscription businesses, renewals are where retention is decided and most of the lifetime value is realized. A strong renewal rate signals real, ongoing value; a weak one undermines all your acquisition effort.

For example

A customer's annual contract comes up for renewal; because they adopted the product deeply, they renew and add seats.

Go deeper

Founding Sales: The Early-Stage GTM Handbook Pete Kazanjy · guide Renewal in context: the free handbook on running early-stage sales as a founder, from first outreach to a repeatable motion. Open foundingsales.com →

Related terms

Also in Starting Up

See how founders actually handle this on Getting your first customers, part of the Starting Up hub.

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