The Renewal

What this pack runs.

A renewal is the moment a customer you already have decides again. Until the date the base is a fact; on it, the base is a choice, and the company chooses what to offer: the same terms, a discount, a credit, a module, a rise it had planned and now does not take. What makes that a decision rather than a routine is who receives it. The give goes to the whole renewing base, and the departures it prevents are a fraction of it, so every customer who would have renewed for nothing is paid the same as the one who would have left. Sales prices the departures as revenue and finance prices the give as a percentage, and neither number is on the same page as the other. This pack turns it into two subtractions and an annuity. What one renewing customer earns over the years they stay, less what a replacement brings back after what it costs to win and the year it takes to ramp, is what one departure costs. The give, every year of the renewed term, on every customer who stays, is what keeping them costs. Set the departures the give actually prevents beside the give on the whole base, and the decision reduces to the break-even cost to keep: the most you can give a renewing customer, a year, before letting them go and replacing them is cheaper. It stops on two halts: no one has counted how many would leave if nothing were given, and no one has costed what a replacement customer takes to win.

The casebooks these cases come from.

The pack reads nine sourced decisions through the framework. They are drawn from these casebooks, each one a set of verified records on a single decision type.

A verified record has passed a mechanical claim-versus-source check, a second model's read, and human approval. The count is what exists today, not a target.