Keeping a very high percentage on Dynamics ERP maintenance renewals does require high effort and it brings big rewards in customer retention. We’re constantly calling, emailing and reminding clients about their maintenance renewals and really driving the value so that they can keep their systems up to date. Historically, TMC has enjoyed 95+% rate of renewals year over year. Even during the downturn of the economy we were able to convince clients of the importance of the renewing their maintenance plans. Another reason for having a high renewal percentage is that, as a Microsoft Gold Certified Partner, the number of incidents in our Partner Services Plan is based on percentage of renewals.
Unfortunately, we also have to drive home the pitfalls of not renewing plans. In addition to the penalties assessed by Microsoft, did you know that the System List Price (SLP), which the maintenance plans are based, will re-set if a client does not renew? As long as clients remain current on plans, their SLP is locked in unless they purchase a la carte modules or new users. So if clients don’t renew on time, they face penalties an increased SLP and higher costs. Some large installations can jump as much as $40K in their SLP when they did not see the value of the renewal of upgrades, service packs or keeping their systems current with the latest technology offered by Microsoft Dynamics.