1. Maxio
  2. Subscription Management
  3. Subscriptions | Advanced Billing
  4. Term Subscriptions

Auto-Renewal

 

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This article on Auto-renewal is specific to the Advanced Billing-only workflow. For Auto-renewals related to Transactions using the Maxio Platform workflow, go to this article.

 

Auto-renewal is a simple way to manage renewals for your Term Subscriptions. It ensures a smooth transition to the next term and minimizes your workload. With features like Renewal Profile, Lock-in Date, and Renewal Factor, you can automate renewals and keep your revenue steady. If you need more flexibility, then a Scheduled Renewal is a good alternative.

Benefits of Auto-Renewal

Using auto-renewal strategically can help you simplify your operations, keep your customers happy, and predict your revenue growth with confidence.

  • Hands-free management
    Renewals happen automatically, freeing up your time.  

  • Lock-in date
    Prevents modifications to the next subscription term after a certain point, ensuring predictability. 

  • Automatic price increase
    Apply an uplift upon renewal using the Renewal Factor, ensuring revenue growth over time.

When to Use Auto-Renewal

Auto-renewal is a good choice for:

  • Long-term customer retention strategies
    Minimal changes are expected in subscription configurations.

  • Standardized pricing models
    Customers are comfortable with automatic renewals at pre-set rates.

  • Low-touch customer management
    Your aim is to reduce manual renewal tasks and ensure consistent revenue streams.

Related Article:

Differences Between Scheduled Renewal and Auto-Renewal

How Auto-Renewal Works at the Time of Renewal

When a Subscription term ends, auto-renewal automatically starts a new one. Your Products and Components stay the same. If you've set a price increase, it's applied to the renewed Subscription. It's important to note that when a price increase happens, all Products and Components are moved to Custom Pricing. This means any future changes won't go back to the standard pricing models. This ensures that any price increases you've set take effect while keeping your subscription offerings consistent.

Setting Up Auto-Renewal

You can set up an auto-renewal while you are creating the subscription or afterwards.

During Subscription Creation

You can enable auto-renewal right when you create a subscription. This makes the renewal process smooth from the start. Just go to the subscription settings and:

  1. Set the Term Length.
  2. Select Renewal Profile.
  3. Configure the Renewal Factor.

This sets up a predictable and automated renewal process, saving you time and ensuring your customers' service continues without interruption.

After Subscription Creation

If you didn't enable auto-renewal when creating the subscription, you can easily add it later. Just update the subscription settings:

  • Add a renewal and select Auto Renewing.

  • Set the Renewal Term Length and Auto-Renewal Profile.

  • (If needed) Define the Renewal Factor.  

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This ensures the subscription renews smoothly at the end of its term without any extra work on your part.

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