As a business owner, using the right SaaS products and getting the most out of them can make or break a new or smaller company.
Some companies have hundreds of these services. So having too many SaaS subscriptions can quickly become costly and inefficient if not managed properly.
However, it is easy to fall into the trap of purchasing too many SaaS subscriptions without realizing how much they cost your business in terms of both money and time.
In this article, we’ll discuss eight signs that indicate you may be wasting too much money on SaaS subscriptions for your business. Watch out for these red flags to ensure you only invest in services that will benefit your company and reduce unnecessary spending.
What is SaaS and How Can It Help Your Business?
In the world of business technology, Software as a Service (SaaS) has become popular and necessary for companies trying to stay ahead of their competition.
SaaS is a cloud-based software delivery model allowing businesses to access applications and services online instead of installing them on their servers and devices. This type of software delivery offers many benefits to businesses, small and large, including scalability, efficiency, and cost-effectiveness.
With this tech, businesses can easily add or remove users as needed, customize their software subscriptions to meet changing needs, and avoid the headache of maintenance and upgrades.
Businesses no longer have to worry about software installations, backups, or other administrative tasks that often come with traditional on-premises solutions.
These services help businesses save time, money, and resources – while staying up-to-date with the latest technology advancements.
8 Signs That You May Be Overpaying for SaaS Subscriptions
Signing up for every tool under the sun isn’t always a bad idea. You need to do quite a bit of testing to find the right products for your team and company. But after this phase, it’s time to start reigning in that budget.
Here’s how to tell you’re getting out of control.
1. Unused and Duplicate Subscriptions
You are likely wasting money if you’ve signed up for multiple SaaS subscriptions offering the same features.
To prevent this from happening, take a moment to review all of your current and recently canceled subscriptions and look for any overlap. This will help you determine if there are any duplicate or unnecessary services that can be eliminated.
2. Outdated Software
Another sign of overspending on SaaS subscriptions is if your software and services are outdated.
This could mean that the version of the software you’re using is outdated, or it could be a lack of support options for the service.
You should always look for products with regular updates and comprehensive customer service options so your business gets full value from its SaaS subscriptions.
3. High Cost for Low Usage
If you find that you are using a particular service infrequently but still paying full price for it, then it’s time to get rid of it. And the more of these products your company uses, the more of an issue this will become.
If usage is low, try to look for services that offer discounts or free trials. You will save money, and your business only pays for the services it needs.
4. Lack of Automation
You may be wasting time and resources if you manually perform constant, repetitive tasks to keep up with your SaaS subscriptions.
Look for automation tools that can help streamline processes and free up valuable time. Automation can also help you save money by reducing the need to purchase multiple services that offer similar features.
5. Not Leveraging All of a Subscription’s Features
Most services come with a range of features and tools, but few businesses take full advantage of them. Use all the features included in your subscription to get the most bang for your buck.
6. Lack of Transparency in Pricing
Sometimes, the best way to save money on SaaS subscriptions is simply by knowing what you’re paying for.
Unfortunately, many services have unclear or confusing pricing structures, making it difficult to know exactly how much you spend each month.
If you notice this is the case with some of your subscriptions, start shopping around. Most products worth having make pricing information crystal clear.
7. Poor Contract Management
Always pay attention to your contracts, especially the fine print. A centralized contract management system can help your current and past contracts stay organized and easily accessible.
Centralizing will make reviewing them easier and assist in identifying any services that can be eliminated or renegotiated for a lower rate.
8. Poor Processes for Identifying New Requirements
If your business is regularly purchasing new SaaS subscriptions without first taking the time to assess if they are necessary, then this could be a clear sign that you’re overspending on services.
To prevent this from happening, take the time to create a process for identifying and assessing new requirements.
Not only will this help keep costs low, but it will also make individual department managers accountable for going over budget. And yes, there is a SaaS product for this. Don’t skimp on this one. You want the best ITSM software you can find.
Conclusion: How to Get the Most Out of Your SaaS Subscriptions
If you’re noticing any of the signs listed above regarding your SaaS subscriptions, then it’s important to take action immediately.
Evaluating your subscription services and eliminating those that are unnecessary or underused can help save money and ensure that your business only invests in the services it needs.
Doing so will help your business stay competitive and efficient in today’s digital world.