A renewal uplift is a percentage increase applied to a customer's current subscription price when the contract renews, set by rule or by contract rather than negotiated each term.
A worked example
An example with round numbers. A customer pays $40,000 a year for a subscription and $10,000 a year for a support plan. The company's default uplift is 5%; the subscription product is flagged for uplift and the support plan is not. The renewal starts at $42,000 + $10,000 = $52,000. If this customer's contract caps increases at 3%, the account's rate is set to 3% and the renewal starts at $41,200 + $10,000 = $51,200. Either way the rep starts from the uplifted price, so any discount below it is a visible decision rather than a forgotten increase.
Setting the policy
Decide three things and write them into the contract template: the default percentage, which products it applies to, and any cap you will agree to. Apply the uplift when the renewal is generated, not after negotiation; added at the end, it reads as a surcharge and gets waived. Tell the customer early, in the renewal notice. Then measure uplift capture: uplift dollars realized divided by uplift dollars quoted. An uplift that is never applied is revenue leakage. CEI, a Kugamon customer, set a system-wide 6% default renewal price uplift in Kugamon Subscription Management and reported tracking 11% organic growth for the year, “a large percentage” of it from uplifts (CEI case study, 2018). More on renewal pricing and price protection in how CPQ renewals work.
In Salesforce
Standard Salesforce has no renewal logic, so it has no uplift either: the Contract records dates and a term, and nothing creates the renewal or reprices it. Teams without a package raise prices by hand on a cloned Opportunity or build the increase in Flow. Salesforce CPQ handles it through the Contract's renewal settings, including a renewal uplift percentage, and applies it when the renewal quote is generated from the Contract and its subscriptions. Revenue Cloud Advanced runs renewals against assets; confirm in a demo how an uplift and any negotiated cap apply to your renewal model.
How Kugamon handles it
Kugamon Subscription Management applies the uplift by rule. The Renewal Price Uplift Percent is set once in Kugamon Settings, defaults onto each Account's Additional Account Info record, where it can be changed for that customer, and is copied to the Renewal Opportunity. Products flagged Uplift Renewal Price have their sales price raised by that percent on the renewal; products without the flag renew flat. The uplift carries into the Renewal Order that the scheduled job generates, typically 60–30 days before the Contract End Date. To honor a negotiated cap, set that account's percent to the cap.
Related terms
- Net revenue retention (NRR)
- Revenue leakage
- Annual recurring revenue (ARR)
- Co-terming
- Contracted price
- Amendment
Source: appexchange.salesforce.com