Automatic contract renewal: stay on top of this issue!
Automatic contract renewal is a subject that raises many doubts. Many don't know what it is, what it's for, or how it should be done to comply with the law. The fact is that this tool can be a “hand in the wheel” for customers and also for companies, but care must be taken not to end up in a bigger problem. If you want to know more about this topic, read on. Clicksign has prepared a complete explanation of this type of automation, we will also talk about the advantages it presents and what the law says about it. We have an exclusive post about What is automation and how it can help your company, it's worth checking out!
After all, what is automatic contract renewal?
Do you know when we hire a service or product and have to have the work to fill out all the paperwork? Can you imagine having to write all your information back on paper every month? Automatic renewal is one way to prevent this problem from happening, restarting the legal validity of the document at each end of the cycle. However, there are different ways to carry out this process.There are two main types of automatic renewal, both of which are intended to try to keep clients linked to a company for as long as possible. The first happens, for example, when a real estate contract ends and the owner renews that document without even consulting the client. In these cases, the contractual clauses are not debated and, therefore, it is a punishable practice. This happens for two reasons: a bad nature on the part of the contractor and lack of supervision of the process. The second type of renewal is one in which the user is aware of the recurrence of this contract - which makes the transaction secure for both sides. This form It has an automation system like the one from Clicksign. It verifies the steps of the process, generates alerts when the document is due and allows the client to know what is happening. It is a way to automate the operation, optimize time and avoid the wear and tear of filling in the information. All this without the consumer being harmed or having to do unnecessary work to conclude a contract. This is just one of advantages of digital documents, we talk more about them in another post. Check it out later!
Is automatic contract renewal legal? Clicksign explains!
If the company is carrying out the second type of renewal that we have explained, the answer is: yes, this is a legally recognized way of contracting products and services! When both parties are aware of future charges and the Does the contractor have a way to cancel the subscription without many complications, there is nothing wrong with this type of tool. Since we are talking about operations that take place in a virtual environment, such as hiring an application or signing up on a website, confirmation from the contractor is required. A electronic signature It is a way of expressing the real will of that user to purchase this service, it serves as legal proof of the subscriber's consent. The illegal way in which this operation ends up taking place is when the company adds the automatic contract renewal clause without the customer's knowledge. In such cases, The consumer must seek their rights and break the validity of the document. The Consumer Protection Code provides legal support for winning this cause. Therefore, if you are thinking of offering your clients the automatic renewal of contracts, don't forget to choose a good automation platform. This way you will be following the laws and offering more security to those who trusted your brand - in addition to building a good reputation in the market!
Understand the advantages of this type of service
This is a tool used in various sectors of life, from telephone bills and health plans, to the premium version of apps and games. Companies that provide products and services run out using this process to improve the experience of your customers and, consequently, try to keep them longer. If done correctly, the option for contracts to be renewed automatically helps both companies and users. Learn why!
- Optimization of transaction time: the contractor will not need to go to the company or enter the contracted service platform to fill in the data every month. The company will also not have to deal with the verification and certification of these documents at the end of each cycle;
- Increased customer retention: by offering facilities in the contract, it is likely that it will be possible to retain that user for a longer time;
- No worries about deadlines: the automation system provides warnings when the document is due to expire, so you don't have to warm your head with the fear of forgetting;
- Improves a company's reputation: by offering quality service, with facilities for the customer and taking care that they are not harmed, the company increases its credibility;
- Increased security: because it has an electronic signature and the supervision of the automation system, this process takes care of the data provided and the veracity of the transaction.
What we can conclude is that this system uses technology to support companies' human capital - it reduces the number of repetitive processes and allows professionals to have time to dedicate themselves to other functions. And that's not all, modernizing the subscription forms of its products makes it able to meet the needs of more and more customers. Automation systems are largely responsible for all these benefits. They make the operation take place in the least laborious way possible, and also those who insure the user. By hiring one of these services, your brand will be acting legally while offering optimal conditions for the public.
Automatic contract renewal in practice — How to do it?
Below, we selected a mini guide for applying this type of contract:
- At first, you need to be aware of the will both parties have about automatic activation. That way, keep in mind if everyone involved wants to continue with the provision of services offered in the contract.
- It is also important to consider the possibilities of renewal, and then provide a deadline for requesting a distraction.
With that in mind, it is essential that automatic renewals be done with some previous prescriptions, these being:
- the request with a deadline for district requests;
- requirement for adjustments throughout the process - even if the renewal is done automatically;
- and notifications about the uninterruption of the contract.
By following these steps, the effectiveness of automatic contract renewal will be much greater. Also remember to use technology together with electronic signatures so that the facilities and assertiveness are superior. Now that you know about automatic contract renewal, read our post about the importance of the Information Security Policy to be even more aware of the subject. The Clicksign blog has many content about ways to optimize your business management. Stay tuned so you don't miss anything!
