What is the typical grace periods businesses offer for renewals after a product expires?

sarahnicholson@eaton.com

Are there industry best practices or benchmarks for how long customers are given to renew after expiration?

Cal Cavness

Hi Sarah,

It's common practice to offer a grace period of 30-60 days on late service and/or support contract renewals. We've seen different organizations choose 30-day, 45-day, and even 60-day grace periods, depending on segment and complexity, before service interruptions, reactivation fees, and/or loss of discounts kick in.

High-performing organizations achieve on-time renewal rates of 90%+, with the industry average around 80-85%. However, it's worth noting that long-tail segments can experience higher late renewal rates of 5-10% higher than those for high-value contracts.