Service agreements and renewals: never miss a renewal date

Write down what you’ve agreed

Every ongoing arrangement should have a record: what you provide, how often, the price, the start date, the end or renewal date and the notice period. A signed document belongs with it.

Set reminders well ahead

Put the renewal conversation in the diary 60 to 90 days before the end date. That leaves time to review the service, adjust the price and get sign-off without a rush.

Use the renewal to review

• Is the customer getting value? Look at the service history.
• Have your costs changed? Plan any price change and explain it.
• Is there more you could do for them?

What a service agreement should cover

• The services included and how often they happen
• Response times, if you promise any
• What is excluded and how extra work is charged
• Price, billing frequency and payment terms
• Start date, term and how renewal works
• Notice period and how either side can end it

Have your standard terms reviewed by an adviser once, then reuse them.

Raising prices at renewal

Price increases go down better when they are expected and explained. Tell customers well before renewal, show what has changed (wages, materials, extra services) and remind them of the value they have received. A small regular increase each year is usually easier for both sides than a large jump every few years.

Building a renewal calendar

List every agreement with its end date, value and owner. Sort by end date and review the next 90 days each month. For each upcoming renewal, check the service history, decide on pricing and book the conversation. A simple routine like this prevents most lost renewals.

Monthly or annual agreements?

Monthly agreements are easier to sell and easier for customers to leave. Annual agreements give more certainty but need a stronger case at renewal time. Many businesses offer both, with a small saving for annual commitment. Whatever you choose, make the renewal terms and notice period clear from the start.

A renewal conversation checklist

• Summarise what was delivered over the term.
• Ask how it’s gone and what could be better.
• Raise any changes to scope or price, with reasons.
• Confirm the new term, start date and price in writing.
• Update the renewal date in your system straight away.

Quick checklist

• Record every agreement with its scope, price, dates and notice period.
• Keep the signed document with the agreement.
• Set a reminder 60 to 90 days before each end date.
• Review service history before each renewal conversation.
• Explain any price change clearly and early.
• Confirm the new term in writing and update the renewal date.
• Watch for warning signs such as late payments or a new contact.

Watch for warning signs

Late payments, more complaints, a new contact person or less contact than usual can all signal a customer at risk. See keeping customers for more.

NovaSoft One contracts record activation and renewal dates with the agreement and its documents, and customer success tools help you spot accounts that need attention.

Common questions

This guide is general information for Australian businesses, not legal, tax or financial advice. Check anything specific to your situation with a qualified adviser or the relevant government agency.