Saas management

Reclaim your time and budget with B2B SaaS subscription management

Software deserves a moment of gratitude. It makes your job easier and more efficient. But is your growing tech stack bringing more problems than solutions?

Company growth should certainly be celebrated. As you grow, SaaS usage across the workplace usually increases. New business needs emerge, and more tools are added. Developments advance and more tools are purchased to keep up with competitors. 

But, each new tool is another payment process to manage.

And your spreadsheet records aren’t providing enough visibility to keep up to date anymore.

With businesses feeling the effects of a deceleration in global GDP growth, today is the best time to address the inefficiencies in your manual management system.

You don’t have to slice valuable SaaS tools from your company. It’s time to get smarter about your SaaS subscription management.

What is SaaS subscription management?

Put simply, SaaS management is keeping track of your app subscriptions.

There are, however, many different elements to keep track of within each app’s lifecycle. These include:

  • Procurement
  • App usage and ROI
  • Renewal 
  • Maintenance 

When you consider that the average company uses 200–300 apps, staying on top of every element of every subscription feels unmanageable. 

But continuing to use error-prone, lengthy manual processes means your business could be looking at waste of $1 million+ a year. 

SaaS subscription management must be a priority.

With modern developments and digital automation, effective SaaS management tools are more than just a virtual filing cabinet. They offer comprehensive solutions to optimize your business costs based on valuable insights into software value.

How does SaaS subscription management work? 

From a subscription purchase to a subscription renewal, a successful SaaS management process maximizes savings and efficiency at every stage.

For context, let’s use the communication software Slack as an example. 

1. Purchase

Your company purchases a subscription to Slack. You must record important information, such as pricing and renewal dates. With an automated management tool, this information becomes part of a centralized database that can be quickly recalled when needed. 

2. Ownership

Now you should assign an employee, usually a team manager, to ensure that Slack onboarding is effective. This designated owner will monitor usage and gather feedback and reports on Slack’s performance. 

3. Usage monitoring and reporting

After some time, you’ll gather performance feedback. Is Slack making communication quicker and easier? Has productivity increased? Are projects being completed more efficiently and cost-effectively?

These lines of inquiry take time to investigate. A SaaS subscription tool can save you hours with automated reports that reveal insights into usage, trends, patterns, and ROI. 

4. Renewal management

Every subscription must come to an end, but before this, you will receive a reminder from Slack that the deadline to renew is approaching.

But it’s not a sad moment. It’s a huge opportunity to right-size your subscription needs and gain the best deals possible. 

Armed with your software reports, you can approach renewal negotiations with confidence. You can tailor your subscription exactly to your needs, or you can cancel it if it fails to meet your targets. 

However, it’s easy to forget renewal deadlines and miss reminder emails. The best way to manage SaaS renewals is with a SaaS subscription management tool. A centralized dashboard sends renewal alerts well in advance of deadlines and gives you full visibility of the renewal process. 

The four steps above get you started on your journey to optimize your subscription management. However, there are some more subtle details to explore for even smoother procedures. 

How to manage SaaS subscriptions vs licenses

Software purchasing has evolved from single license ownership to more popular subscription purchases. Convenience is the driving force behind this shift, as well as the ability to customize what you pay and receive. But what is the difference between these models and how they are managed?

Managing a software license

Before cloud computing, software licenses were sold on floppy disks or CD-ROMS to install on an individual device. Now, they’re installed on a server for an entire organization to use. 

A software license is an agreement that grants an organization the right to use the software. Software licenses are commonly sold through perpetual licensing, which means you pay a one-time, upfront fee to own a copy of the software indefinitely. 

True – once you’ve made that payment, you don’t have to worry about additional costs. 

However, there are extra elements to manage internally. IT has heavy involvement in the security, maintenance and support of the software. 

As your business grows and your needs change, your software license may not be able to keep up with the demand. In the long term, this may not be the best method to keep your business thriving. 

Managing software subscriptions 

Software subscriptions offer access as a service for a defined period, usually monthly or annually, based on a recurring payment. 

Such services offer greater flexibility to adapt plans to suit business needs, with the option to add or reduce subscriptions as required. 

Another useful feature of the subscription model is that you can access updates, support and new features during your subscription period.

Subscriptions work in partnership with an ever-evolving competitive market. However, payment schedules require more cost management. Equally, there are more renewal and negotiation points to manage.

As flexible as they are, SaaS subscriptions do pose some significant management challenges. Let’s explore the impact of these issues. 

SaaS management challenges

In a fast-paced market, there’s no time for spreadsheet searches. Here are some of the risks of manual SaaS management. 

Lack of visibility

As your organization adopts more applications, gaining an overview of subscriptions is challenging, especially if it involves several spreadsheets of lengthy data. 

This can lead to time inefficiencies and makes tracking usage, costs and ROI difficult. Utilizing a comprehensive online video creator can assist in creating detailed tutorials and walkthroughs, enhancing team understanding and efficient use of various SaaS tools

Lack of strategy

If you can’t see the strengths and weaknesses of your software, you can’t act on them. Inaction leads to poor financial decisions, such as renewals of unused software or underperforming apps.

Without a detailed analysis of app performance, the same errors in judgment can reoccur year after year. 

SaaS sprawl

When multiple departments and employees procure subscriptions independently, there is a risk of duplication and waste, as well as the threat of security incidents. 

Maverick employees who purchase subscriptions based on preferences rather than company-wide aims bleed budgets. Even worse, such subscriptions may go unnoticed for some time. To stop SaaS sprawl, full visibility must be gained with a comprehensive management system.  

Cost confusion

Different pricing tiers, different features and decisions about how many subscription licenses to purchase can be overwhelming. At this point, it may be tempting to just go with the best fit and get the job done. However, long term, this approach will waste more time and cost, significantly affecting your financial budget. 

Renewal oversight 

You’re busy, and opportunities can slip through the net as renewal deadlines pass without re-negotiation. Suddenly, you’re paying more for a package when you only use half of the features. 

Vendor management 

Multiple software subscriptions mean multiple vendors to deal with. That’s a lot of conversations, especially when it comes to service level agreements, support and aligning contractual terms. Deals and discounts can be lost due to a lack of time and personnel to invest in vendor relationships. 

Integration and adoption

The best SaaS practice involves seamless integration between tools to ensure optimized day-to-day working. But, the more apps you have, the more tricky this becomes, and collaboration suffers. 

If employees feel that tools aren’t working efficiently for them, this leads to low adoption and usage rates. The tool and its cost are wasted. 

Keen to avoid these challenges and move swiftly to a managed, strategic approach to SaaS subscriptions? Then let’s examine the benefits of automated management platforms. 

Automated subscription management services

Automation streamlines subscription management processes across your organization. 

If you’re completely new to a subscription management platform, there are many eye-opening rewards to look forward to.

Cost control

Allocate the budget accurately based on clear feedback about your subscription costs on your centralized dashboard. Here, you can see planned vs actual spending at a glance.

Setting up a virtual card that links to departmental budgets makes spending even more controlled. Your payment processes will be smoother and less risky. 

Strategic analysis 

Uncover the performance of each subscription with in-depth automated auditing. Your reports will provide valuable insights into where waste is located and where you should invest to develop your business. 

Improved efficiency

Reduce administrative tasks and time-consuming searches with a centralized, visual platform. Processes are streamlined to eliminate any unnecessary manual labor. Employees will appreciate being able to ‘just get on’ with their jobs, and company-wide productivity will improve. 

Smooth integration

When apps work well together, errors are minimized, and productivity is maximized. SaaS subscription management tools can integrate with your ERP, CRM and accounting systems to keep all departments involved and aware. 

Automated renewals

Eliminate deadline oversights with timely notifications. This gives you the space and flexibility to cancel renewals that no longer fulfill a need or renegotiate terms to maximize their potential. Your subscription management service automates the renewal process, ensuring the continuity of your high-ROI software. 

Scalability

Through the management platform, you can easily adjust your software needs. Never again will you pay for more storage or features than you need. As your needs adapt, you can flex your subscription to match, making cost-effective decisions for your business. 

Speedy onboarding and offboarding

Automate your onboarding and offboarding workflows. No one wants to be involved in a month-long welcome process with a new app or have an app outstaying its welcome on the system. Your automated workflow can provide reminders at key stages for employees and instructions to minimize errors in each process.

A top SaaS subscription management platform, such as Spendbase, puts you in control with a 360-degree, real-time view of your SaaS stack. Use their usage and spend analysis to maximize return on your software expenditure, and never miss a renewal with automated reminders. An average saving of 39% with Spendbase means more budget for you to grow and innovate. You can become a frontrunner in your industry with Spendbase’s smarter SaaS management. 

You might be thinking – this level of holistic support sounds expensive. Not necessarily. 

How much does subscription management software cost?

The purpose of subscription management is to optimize your software costs. But, if the actual management system itself is extortionate… it’s a senseless investment.

You need cost optimization through cost-effective subscription management. 

There are various tools available, all with their own price points. 

For example, some basic packages begin at just $45 a month but the small print reveals the price is per employee. 

Other packages are around $60 per month for ten users, which sounds more reasonable. Unfortunately, these services offer little customization at this price point. 

Mid-range packages range between $200-$300 per month and the most expensive subscription management platforms are around $35,000 a year. That’s a lot of cost to try and…save cost. 

Then, there are the hidden prices which arouse more suspicion. Several SaaS management tools suggest that you ‘book a demo’ or request a quote. A lack of transparency definitely isn’t the best start to a healthy relationship. 

Luckily, you can find the balance with Spendbase’s cost-effective SaaS subscription management tool that works smarter, not harder, for complete optimization of your software.

Takeaways

Smart SaaS subscription management is the key to keeping your business agile, cost-effective, and competitive. Here’s why:

  1. A centralized dashboard saves you from subscription chaos. Keep all your subscription details, renewals, and usage reports in one place to eliminate scattered, error-prone spreadsheets.
  2. Renewal deadlines can be a golden opportunity, not a headache. Automate reminders and negotiations to right-size your subscriptions and cut out the bloat.
  3. Ad-hoc purchases by employees? They’re bleeding your budget. SaaS sprawl from independent department buys is a stealthy financial drain—gaining full visibility is your first step to stopping it.
  4. Efficiency isn’t just about speed; it’s about insight. Automated usage audits reveal high-performing apps and highlight the ones dragging down productivity, so you invest where it counts.
  5. With automation, scalability is a breeze. As your company evolves, easily adjust your SaaS stack—pay for what you need, when you need it.
  6. You need cost optimization tools that don’t break the bank. Spendbase offers smart solutions that optimize spending without the exorbitant price tag of other platforms.

SaaS management isn’t just about cutting tools; it’s about controlling costs and maximizing value. Implementing an automated system like Spendbase makes the entire process smarter, more efficient, and a whole lot easier.

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