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Renewal Automation, Auto Renewal

Understanding the Difference: Renewal Automation vs. Auto-Renewal in Subscription Services.

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Vinod Kumar Gubba
Vinod is one of the founding engineers at Yagna IQ. In this role, he is responsible for developing customer strategy, accelerating platform adoption growth, and ensuring that the Yagna iQ Platform is the most trusted and relevant Channel Sales Simplified platform in the industry.

Renewal automation and Auto-renewal are two distinct concepts that are often confused. These two terms are often used in the context of subscription services. While they may sound similar, there are some key differences between them.



What is a Renewal Automation?

Renewal automation is a highly effective digitization process that both Software (SaaS) and Hardware companies can implement to effortlessly streamline the renewal process for their customers, either for Subscription or Maintenance contracts. With this process in place, companies can send automated reminders to customers about upcoming renewals, enabling them to renew their subscriptions or services with ease. Once the user has given their consent, the renewal is processed automatically, making the entire process seamless and hassle-free.


Renewal automation is a game-changer for companies looking to optimize their RevOps team’s workload while boosting customer retention. Vendors, distributors, and resellers (VDRs) or channel partners deal with colossal amounts of renewal data, and relying on manual processes can be a costly, time-consuming, and energy-draining affair that can lead to late renewals or, worse, lost customers. By leveraging renewal automation, companies can streamline the renewal process and reap significant benefits in terms of increased efficiency and customer satisfaction.


Renewal automation is gaining immense popularity among companies, and for good reason.


  1. Subscription-based services (SaaS Companies): These are crucial for many businesses. These services can include software licenses or cloud storage, and their renewal must be managed efficiently to prevent workflow disruptions. By automating the renewal process, businesses can rest assured that their subscription-based services will be renewed on time and their operations will continue to run smoothly.
  2. Hardware or Software Maintenance products: Renewing maintenance contracts on time is crucial for streamlining the customer success process and ensuring that your customers and partners will receive the support they require.


Organizations can save time and resources by automating the renewal process in these areas, reducing errors, and ensuring that services are uninterrupted.


Multi-tier channel partners, including vendors, distributors, and resellers (VDRs), communicate with each other and take constant follow-ups for their renewal contracts. This channel partner’s primary concern is getting approvals and contracts on time.


Manual quote requests and delayed responses are posing significant challenges for these businesses. However, channel partners can now leverage a standard renewal automation platform to share quotes and streamline their operations securely and confidently.


VDR channel partners prioritize maintaining strong relationships to serve their customers efficiently. Using standardized renewal platforms, these organizations can seamlessly streamline the renewal process for their channel partners and ensure uninterrupted value delivery to their customers.


Yagna iQ is a powerful Renewal automation platform that streamlines the entire renewal process for multi-tier channel partners, from uploading upcoming renewals, Sending brand quotes, collecting customer responses, showing customer analytics, and building reminders, updating customer records. With this platform in place, businesses can rest assured that every aspect of their renewal process is taken care of with precision and efficiency, allowing them to focus on what matters: growing their business.


Automating manual tasks can save organizations a lot of time and reduce the risk of errors or delays in the renewal process. One of the most critical benefits of renewal automation for multilevel channel partners is its ability to improve customer retention rates. Quick and efficient renewal processing demonstrates an organization’s commitment to providing high-quality service and customer support, which can help build customer trust and loyalty. In today’s marketplace, this can be a significant competitive advantage.

What is an Auto-Renewal?

Businesses often use Auto-renewal to automatically renew a user’s subscription or service without explicit consent. Businesses use auto-renewals to ensure that their customers continue using their services or products without interruption. This helps to maintain a steady revenue stream and allows businesses to plan and forecast their future earnings. Auto-renewals can also be more convenient for customers who want to avoid manually renewing their subscriptions or services. However, businesses must be transparent about their auto-renewal policies and obtain explicit customer consent to avoid negative feedback or legal issues.


This means the customer’s credit card is automatically charged, and their subscription is renewed for another period (usually a month or a year).


Here is the key difference between both the terms:

What is the difference between renewal automation and auto-renewal?

Renewal Automation Auto-Renewal
This approach is focused on streamlining and digitizing the renewal process by automating workflows and other related tasks. it is an Automatic renewal of Service /Subscription
Requires some action from the customer to renew their subscription. One-time action required from the customer
Involve Explicit Consent of the user Do not involve explicit consent of the user


Difference between Renewal Automation vs Auto-Renewal


In summary, auto-renewal is a convenient method for maintaining revenue streams and renewing subscriptions automatically. Renewal automation is a complete digitization of the renewal process using a platform like Yagna iQ. It can streamline subscription renewals across channel partners, saving time and resources while ensuring uninterrupted services.


Book a Demo to learn how Yagna iQ’s comprehensive features empower multi-tier channel partners, fostering efficient operations and strong customer relationships.