A great renewal proposal makes the decision obvious. It reminds customers why they bought, shows what they've achieved, and makes the path forward clear and compelling.

Why Proposal Quality Matters

Your renewal proposal does heavy lifting. It's your sales document, value proof, and decision framework all in one.

A good proposal reinforces value through data and stories, presents options that guide toward your preferred choice, and answers common objections before they come up. It makes acceptance administratively easy and feels professional without being generic.

A poor proposal just states pricing and terms. No context, no value reminder, no real choices. It leaves questions unanswered and feels like you sent the same template to everyone.

The difference? 10-20 percentage points in conversion rate.

What Goes in Every Renewal Proposal

Every renewal proposal needs these core sections, though you'll adapt based on account size and complexity.

Executive Summary

Start with a one-page overview that busy executives can scan. They might not read past this, so make it count.

Here's what works:

Start with relationship context: "[Customer] has partnered with [Company] since [date], using [Product] to [primary use case]."

Then hit the value delivered highlights:

"Over the past year, [Customer] has: • [Achievement 1 with metric] • [Achievement 2 with metric] • [Achievement 3 with metric]"

Follow with your renewal recommendation: "We recommend a [term length] renewal with [key terms]. This continues your current success while [additional benefit if applicable]."

End with a key terms snapshot:

  • Contract term: [length]
  • Annual value: [$amount]
  • Key changes: [if any, or "no changes"]
  • Recommended by: [your name and title]

Keep it scannable. Use bullet points liberally. Highlight the numbers that matter.

Value Delivered Review

This section proves the renewal is worth it. It's your ROI story, and it needs to land.

Usage and Adoption Metrics

Show engagement data that demonstrates the product is actually being used. Rising adoption numbers tell a great story.

Here's a format that works:

YOUR TEAM'S USAGE

Active users: 127 of 150 licenses (85% adoption)

  • Up from 73% at implementation

Monthly active sessions: 2,847 average

  • 22 sessions per user per month

Features adopted: 18 of 22 available

  • Including 8 of 10 advanced features

Data processed: 1.2M records

  • Up 67% year-over-year

Show growth trends when you can. Increasing usage validates value. But if usage is flat or declining, you need to address it before it becomes an objection.

Outcomes and ROI

Connect usage to business impact. This is where you show real money.

OUTCOMES ACHIEVED

Time savings: ~312 hours saved

  • Through automation of [process]
  • Equivalent to $18,720 in labor cost

Error reduction: 43% fewer [type of error]

  • Improved quality and compliance
  • Reduced rework and customer complaints

Productivity increase: 34% more [output metric]

  • Team completed 1,847 projects vs 1,378 prior year
  • Without adding headcount

Quantify when possible. Use their terminology and metrics, not yours. Connect back to goals they stated at purchase or during QBRs.

Success Stories and Highlights

Narrative examples make the data real. People remember stories more than stats.

RECENT SUCCESS HIGHLIGHTS

Q2 Product Launch [Champion name]'s team used [product] to coordinate the Q2 product launch across 8 departments. The launch came in 2 weeks early and 15% under budget. [Quote from champion]: "We couldn't have pulled this off without [product]."

New Compliance Initiative When new regulations required [change], your team used [feature] to audit and update 3,400 records in 3 days instead of the projected 2 weeks.

Stories create emotional connection that metrics alone don't provide. One good story is worth a dozen charts.

User Satisfaction

If you have feedback data, include it. Happy users make renewal conversations easier.

USER FEEDBACK

NPS Score: 48 (Promoter category)

  • Industry average: 31

CSAT: 4.6 of 5 stars

  • 92% of support interactions rated 4-5 stars

User quotes: "[Positive user quote]" - [User name, title] "[Another positive quote]" - [Another user]

If satisfaction is low, acknowledge it and explain your improvement plans. Don't pretend problems don't exist.

Renewal Terms and Pricing

Now that you've established value, present terms clearly. No surprises.

Current Agreement Recap

Remind them what they have now. Most people don't remember their exact terms.

CURRENT AGREEMENT

Start date: January 15, 2024 End date: January 14, 2025 Contract term: 1 year Annual value: $36,000 Includes:

  • 150 user licenses
  • Standard support tier
  • Quarterly business reviews
  • [Other relevant terms]

This baseline helps them understand what's changing, or not changing.

Proposed Renewal Terms

Present your recommendation clearly. Don't bury important terms.

PROPOSED RENEWAL

Term: 1 year (January 15, 2025 - January 14, 2026) Annual value: $36,000 (no increase) Includes:

  • 150 user licenses (adjust to actual usage if needed)
  • Standard support tier
  • Quarterly business reviews
  • [Any new features or benefits since last year]

Payment: Annual upfront or quarterly installments Start date: January 15, 2025

Be transparent about everything. Surprises in terms create unnecessary friction.

Pricing Presentation

Show pricing clearly with context. Price always needs a frame of reference.

INVESTMENT

Annual: $36,000

  • $240 per user per year
  • $20 per user per month

Payment options:

  • Annual upfront: $36,000 (standard)
  • Quarterly: $9,500 per quarter ($38,000 annual)
  • Monthly: $3,200 per month ($38,400 annual)

Your ROI: Based on documented time savings of 312 hours at $60/hour average rate, your return is 1.6x in efficiency gains alone.

Always tie price back to value. Price seems high in isolation but reasonable when you show ROI.

Comparison to Current Terms

If anything changed, explain it clearly.

CHANGES FROM CURRENT AGREEMENT

Pricing: Unchanged from last year Licenses: Option to adjust to actual usage (currently 127 active of 150) New benefits included:

  • [New feature launched since last renewal]
  • [Enhanced support capability]
  • [Other additions]

Note: No price increase despite [X]% product improvements and new features added.

If you're holding pricing flat, highlight it. Customers appreciate that. If you're increasing price, justify it with specifics.

Optional Expansion Items

If expansion opportunities exist, present them as options, not requirements. Don't make the renewal feel conditional on upsell.

Expansion Menu Approach

Give them clear add-on choices:

ADDITIONAL OPTIONS AVAILABLE

Option A: Additional users

  • Add 50 licenses for growing team
  • Investment: +$12,000 annually
  • Benefit: Support planned team growth, avoid mid-term upgrades

Option B: Premium support tier

  • Upgrade to Premium support
  • Investment: +$4,800 annually
  • Benefit: 24/7 support, 2-hour SLA, dedicated support engineer

Option C: [Product add-on]

  • Add [complementary product]
  • Investment: +$10,000 annually
  • Benefit: [Specific outcome enabled]

Make each option standalone. Customers can pick one, multiple, or none without affecting the base renewal.

Business Case for Each Option

Don't just list features. Explain why it matters to their specific situation.

WHY ADDITIONAL LICENSES NOW

Your team has grown from 120 to 145 people since last renewal, with plans to reach 175 by year-end. Adding 50 licenses now:

  • Avoids mid-year procurement process
  • Locks current pricing (potential 8% increase if added mid-year)
  • Enables immediate onboarding as team grows
  • Volume discount: $220/user instead of $240/user

Connect expansion to their business reality, not your revenue goals. They can tell the difference.

Bundle Pricing

If offering multiple expansion options, bundle them attractively. Most people pick the middle option when given three choices.

BUNDLE PRICING

Option 1: Base renewal only - $36,000 Option 2: Renewal + 50 users - $46,000 (save $2,000 vs separate) Option 3: Renewal + 50 users + Premium support - $49,000 (save $3,800 vs separate)

Recommendation: Option 3 provides best value for your growth plans while maximizing ROI.

Give customers an easy way to choose. Paradox of choice is real.

Next Steps and Process

Make accepting the proposal as easy as possible. Remove every bit of friction you can.

Timeline

Lay out the path to signature with realistic dates.

RECOMMENDED TIMELINE

By December 15: Review and approve proposal internally By December 22: Finalize any questions or adjustments By December 29: Contracts signed January 15: Renewed term begins

We're happy to adjust this timeline to match your approval process. Key milestone is signature before January 14 to avoid any service interruption.

Set expectations while showing flexibility. Most delays happen because nobody mapped out the approval path.

Approval Process

Acknowledge their internal process. You know it's not just their decision.

TYPICAL APPROVAL PATH

We understand approval likely requires:

  • Your review and approval
  • [Department head] sign-off
  • Procurement review
  • Legal review (if terms changed)
  • Finance approval and PO generation

We're happy to:

  • Attend approval meetings to answer questions
  • Provide additional materials for stakeholders
  • Adjust timeline if needed
  • Streamline wherever possible

Show you understand their world. Offer to help navigate internal politics.

How to Accept

Make it dead simple to say yes.

TO MOVE FORWARD

Option 1: E-signature (fastest)

  • Click here: [DocuSign link]
  • Sign electronically
  • Done in 3 minutes

Option 2: Manual signature

  • Download contract: [PDF link]
  • Sign and scan
  • Email to: [your email]

Option 3: Need adjustments?

  • Call me: [phone]
  • Email me: [email]
  • Schedule time: [calendar link]

I'm here to make this easy.

The easier you make it, the faster it happens. Every extra step loses 10-15% of people.

Contact Information

Be accessible. Don't make them hunt for your contact info.

QUESTIONS? CONTACT US

Primary contact: [Your name], [Title]

  • Email: [email]
  • Phone: [phone]
  • Calendar: [calendar link]

Escalation: [Manager name], [Title]

  • Email: [email]
  • Phone: [phone]

We're committed to making this renewal smooth and easy. Reach out anytime.

Make sure customers know how to reach you. Radio silence kills deals.

Presenting Options: Good/Better/Best

Giving customers choices increases conversion, but too many choices paralyze. Three is the magic number.

Three-Option Framework

Here's what works consistently:

Option 1 - GOOD: Flat renewal

  • Same terms, same scope
  • Maintain current value
  • Easiest approval
  • Price: $36,000

Option 2 - BETTER: Renewal + modest expansion (★ RECOMMENDED)

  • Current scope plus [modest addition]
  • Support growth plans
  • Better value per unit
  • Price: $42,000 (save $2,000 vs buying later)

Option 3 - BEST: Renewal + full expansion + multi-year

  • Everything in Better plus [additional expansion]
  • 2-year commitment
  • Maximum value and savings
  • Price: $45,000/year (save $8,000 over 2 years vs buying separately)

Label your recommended option with a star or highlighting. Many customers default to whatever you suggest.

Clear Recommendation

Don't make customers guess what you think they should do.

OUR RECOMMENDATION

We recommend Option 2 (Better) based on:

  • Your stated growth plans (adding 30 team members)
  • Current usage patterns showing expansion readiness
  • ROI opportunity from [specific benefit]
  • Timing alignment with your [initiative]

Option 2 provides the right balance of value, cost, and growth support.

This guides the decision without being pushy. You're the expert, so own the recommendation.

Comparison Table

Visual comparison helps people decide faster.

Feature Good Better ★ Best
Current users ✓ ✓ ✓
Additional users - +25 +50
Premium support - ✓ ✓
Advanced features - - ✓
Contract length 1 year 1 year 2 years
Price/year $36K $42K $45K
Best for No change Growth mode Max value

Make differences clear at a glance. Nobody wants to read paragraphs to compare options.

Making It Easy to Say Yes

Reduce friction everywhere possible. Every obstacle costs you conversions.

Simple Decision Framework

Help customers think through the decision with a clear mental model.

DECIDING ON YOUR RENEWAL

Ask yourself: ✓ Has [Product] delivered value this year? [Yes → Renew] ✓ Do we plan to continue using it? [Yes → Renew] ✓ Is our team growing or usage increasing? [Yes → Consider expansion] ✓ Do we value price certainty? [Yes → Consider multi-year]

If you answered yes to the first two questions, renewal is the clear choice. The rest is just optimization.

This frames renewal as obvious and expansion as smart, not required.

Pre-Filled Contracts

Don't make customers fill out forms. Do the work for them.

Have contracts ready with:

  • All terms pre-filled based on proposal
  • Only signatures needed
  • E-signature enabled
  • Mobile-friendly
  • Tracking when viewed and signed

Time from "yes" to signature should be measured in minutes, not days.

E-Signature Ready

Physical signatures add 5-10 days minimum. E-signature closes same day.

Use DocuSign, PandaDoc, or similar. Send directly from your CRM or CS platform. Include signing instructions. Make it mobile-optimized. Set up automatic reminders.

If customer requires physical signatures, have that process documented and ready to go.

Payment Terms Flexibility

Payment timing can be a blocker, especially at year-end budget time. Offer options.

Payment structures that work:

  • Annual upfront (standard, often with slight discount)
  • Quarterly (premium of 5-8%)
  • Monthly (premium of 10-12%, SMB only)
  • Net 30/60 (for established customers)

Work with your finance team on what's acceptable. Losing a renewal over payment terms is silly when you could have been flexible.

FAQ Addressing Concerns

Anticipate and answer common questions before they ask.

Q: What happens if we don't renew? A: Service ends on [date]. We provide 30-day data export window. We'd hate to see you go.

Q: Can we reduce our licenses? A: Yes, we can adjust to actual usage. Current usage is 127 of 150, so we could reduce to 130-140 if desired.

Q: What if our budget gets cut? A: Let's talk. We have options for payment terms, contract length, or scope adjustments to make this work.

Q: Can we do a shorter term to see how things go? A: Your usage and satisfaction are strong, but we can discuss this if there's genuine uncertainty.

Address objections before they're raised. It shows you've thought this through.

Proposal Formats: Choosing the Right Vehicle

Different accounts need different formats. Match the formality to the audience.

PDF Proposals

Best for mid-market and enterprise accounts with formal approval processes.

Advantages: Professional appearance, easy to forward and share, maintains formatting, can be signed or attached to contracts.

Design tips: Use your brand consistently. Include table of contents for proposals over 6 pages. Make it skimmable with headers, bullets, and highlights. Include visuals like charts and graphs. Keep to 6-10 pages maximum.

Slide Presentations

Best for presentation meetings and visual communicators.

Advantages: Visual and engaging, easy to present in meetings, modular (can skip or reorder slides), good for storytelling.

Design tips: One idea per slide. Heavy use of visuals. Minimal text. Include slide numbers. End with crystal clear next steps.

Online Interactive Proposals

Best for tech-savvy customers and fast-moving deals.

Advantages: Track engagement (views, time spent), interactive pricing calculators, video integration possible, e-signature built in.

Tools worth checking out: PandaDoc, Proposify, Qwilr, GetAccept.

Contract-Based Approach

Best for simple renewals and SMB accounts that want efficiency.

Advantages: Most streamlined, least document overhead, fastest path to signature.

Skip the formal proposal. Just send a renewal contract with a brief cover email recapping value and terms. Some customers appreciate not having to read another document.

Hybrid Approach (Most Common)

PDF value summary + separate contract.

The value summary tells the story and builds the case. The contract provides legal terms. This separates "should we?" from "how do we?" and makes both documents cleaner.

Customization by Segment

Don't use the same proposal format for all accounts. Size matters here.

Enterprise Proposals

These need to be comprehensive: 8-12 pages with detailed ROI analysis, strategic language, and multi-stakeholder awareness. Professional design. Custom every time.

Include an executive summary (1 page), value delivered (2-3 pages), strategic alignment (1 page), renewal terms (1-2 pages), expansion options (1-2 pages), implementation support (1 page), and next steps (1 page).

Enterprise customers expect thoroughness. Don't skimp on detail or polish.

Mid-Market Proposals

Moderate length works: 4-6 pages. Balanced detail, value-focused. Template-based with customization. Professional but not over-designed.

Include executive summary, value highlights, renewal terms, optional expansion, and next steps.

This is the right balance of information and efficiency. Most mid-market buyers appreciate brevity with substance.

SMB Proposals

Keep it streamlined: 1-3 pages. Simple and clear. Action-oriented. Heavily templated. Fast turnaround.

Include brief value recap, pricing and terms, how to renew, and contact info.

SMB customers want simplicity. Respect their time. They're probably wearing five hats and just need to know the basics.

Automated Self-Service

For your lowest tier or auto-renewal accounts, go minimal.

Send an email with renewal details, link to update payment method, link to contract if needed. Maybe give them a portal where they can view and accept terms.

This is minimum viable renewal communication. It works fine for customers who are happy and just need logistics.

Visual Design Principles

Good design improves readability and credibility. Bad design makes people wonder about your competence.

Professional Appearance

Your proposal represents your brand.

Use company color scheme and fonts consistently. Include your logo. Keep formatting consistent throughout. Use white space generously. Don't cram content. Add page numbers and footers.

A messy proposal suggests a messy service. Fair or not, people judge.

Data Visualization

Numbers are boring on their own. Charts grab attention and make points instantly.

Turn these into visuals: usage growth over time (line chart), feature adoption (bar chart), ROI calculation (infographic), pricing comparison (table), timeline (Gantt-style visual).

One good chart is worth 100 numbers in a paragraph.

Clear Hierarchy

Help readers navigate and scan effectively.

Use consistent heading styles (H1, H2, H3). Bold key points sparingly. Use color for important information. Add boxes or callouts for critical points. Use bullet points for lists.

A reader should be able to scan your proposal in 60 seconds and get the key points. Most executives do exactly this.

Readability

Make it easy on the eyes.

Use 11-12pt font minimum. Add adequate line spacing. Keep paragraphs short (3-5 lines max). Write in active voice with clear language. Avoid jargon when possible.

If your champion needs to share this with their boss, make it easy for the boss to understand quickly without your champion having to explain.

Delivery and Follow-Up

How you deliver the proposal matters almost as much as what's in it.

Delivery Timing

Send when the customer can actually review it, not when it's convenient for you.

Send mid-week (Tuesday-Thursday). Mid-morning in their timezone (9-11am). Not on holidays or during known busy periods. After any pre-conversation you promised.

Don't send proposals at 4:45pm on Friday and expect them to be reviewed.

Presentation Approach

Don't just email the proposal and hope. Present it.

Option 1: Live walkthrough (best for important deals) Schedule 30-minute meeting. Share screen and walk through the proposal. Answer questions in real-time. Close with agreed next steps.

Option 2: Video walkthrough (good for async) Record yourself walking through the proposal. Send video with the document. Personal touch without requiring a meeting. They can watch on their schedule and go back to review sections.

Option 3: Email with follow-up (efficient for smaller deals) Send with a clear email explanation. Follow up in 2-3 days. Offer to discuss if they have questions.

Match your approach to account size and relationship strength.

Follow-Up Cadence

Don't send and forget. Proposals die in inboxes.

Day 0: Send proposal Day 1: Confirm receipt Day 3: Check if they've reviewed it Day 7: Offer to discuss questions Day 14: Create urgency if stalled

Be persistent but not annoying. There's a difference.

Question Handling

Expect questions. Treat every question as a buying signal.

Answer quickly (same day if possible). Answer completely so you don't create more questions. Confirm they understand. Move toward the next step.

Every answered question is one step closer to signature.

Modification Process

Sometimes terms need adjustment. Don't make this hard.

Understand what needs to change and why. Get internal approvals if needed. Issue revised proposal quickly. Track version numbers clearly. Don't make them ask twice for the same change.

Flexibility within boundaries shows you're partnership-focused, not transaction-focused.

Proposal Development Workflow

Build a repeatable process so you're not reinventing every time.

Week 1: Gather usage and value data. Compile customer feedback and quotes. Draft value sections. Calculate ROI.

Week 2: Determine pricing and options. Get internal approvals. Design layout. Write all sections.

Week 3: Review with your manager. Finalize and polish. Set up e-signature. Schedule delivery meeting.

Week 4: Deliver and present. Field questions. Negotiate if needed. Close.

Don't rush this. A good proposal takes 4-6 hours to create properly. That time investment is worth it.