SaaS Renewal: Should You Do It
The renewal time for your SaaS subscriptions is almost here, and you’re probably thinking if you should renew your subscription or not? To help make certain that you make the right decision and secure the best deal if you do decide to renew, answer these crucial questions:
Is it Cost-Effective or Does it Benefit Outweigh the Cost?
This is one of the essential questions you need to answer especially if you have a tight budget. Basically, you should have very compelling reasons for renewing a SaaS subscription, particularly if it’s on the expensive side.
How Often Do You Use It?
Often, a product would seem great, but then end up unused. The problem is, you’re still paying for it until your subscription ends. Other times, the product just doesn’t deliver the results you’re looking for. If you don’t renew your subscription, you could use the money for something that your organization currently needs.
Are You Planning on Scaling Up (more services, data, and users, etc.) and If Yes, Who Would it Impact your Budget?
Depending on your vendor’s payment and pricing model, you might have to plan for future users. If the vendor has a more flexible payment model, you still have to try and estimate how much you might potentially spend in the future just to make sure that you stay on budget.
Is This The Best Deal You Could Get or Should You Negotiate?
During the SaaS renewal process, Meta SaaS notes that you will need to gauge a vendor’s willingness to negotiate. Do note that some vendors throw in some extras when clients renew, so it’s a good idea to ask and learn more about this. This is likewise the best time to tell vendors about your current needs and budget to see how they could help you. Consider negotiating for the following things if your vendor isn’t keen on negotiating prices:
- More data, features, storage, or users for referrals
- Extra access or services for the same price in exchange for testimonials
- Modifying future or present usage as your needs change
- Installment payments or longer billing terms to reduce the toll on your budget
So before even contacting your vendor, answer the questions above and then plan on how you should approach negotiations beforehand. Don’t forget to ask the opinion of users who use the SaaS product or service.