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9 Tips for Better SaaS Management

Tech companies are moving fast, supporting overall market growth. Regardless of the size of your organisation, you need to always stay ahead of the market changes and know how to optimise the costs to make the process smoother and scale up your SaaS business without unwanted expenses. Cost management has long been something that causes worries only when all things are messy. However, all SaaS organisations now know the importance of managing finances as a priority rather than an afterthought.

Each penny that your SaaS business invests into the platform of improvements should always deliver a return towards the future. Using software tools for SaaS finance management and other ways to better understand your spending can help your business have a clear picture of the current situation so you will make data-driven decisions. In addition, you need to know other tips that will help you manage your business easier and more efficiently.

Manage SaaS Spend by Monitoring SaaS License Usage 

One of the most common mistakes SaaS organisations make is paying for licences that are not getting used. For instance, if you’re paying for 50 licences with your CRM provider while your organisation only has 30 members on its sales team, 20 licences will usually be useless. This fluctuation in the number of team members is usually a big problem among SaaS companies, but constant monitoring of licence usage can solve that issue.

Cancel Unused Licences 

The next step after identifying that you have useless licences is cancelling or archiving them. It is one of the key reasons why centralising management of SaaS apps and subscriptions is crucial to organising smart spend management. Not having centralised management will make it harder or almost impossible for SaaS companies to cancel or archive licences they suspect are going unused. 

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Inventory Your SaaS Tools & Spendings

One of the key ways to achieve cost reductions on SaaS apps and resources is by identifying current inventory. All money transfers and spending generated in cost categories, including notably individual corporate credit cards, business cards, as well as employee expense reports, should be kept in one place and be included in the analysis. However, if it is inconvenient for you, you can always use the software. For example, you can check plaid pricing to find the best solution for your inventory.

Review SaaS Pricing Pages for Spend Management

To get a sense of various levels of SaaS support, it is best to check plaid pricing on any platform. For example, one pricing platform reported that users at higher levels could boost performance, perform A/B testing and implement conversational bots. Therefore, today SaaS companies using SaaS products can keep all their licences lumped into a single service level. 

In some cases, your organisation will also be able to access savings by allocating some licences to a lower service level for customers who do not need high-level features. Popular SaaS companies will often allow you to mix plans according to those personal requirements and interests.

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Streamline your Expenses

Thanks to digitalisation and the pandemic caused by COVID, employees now prefer to work from home, and this trend will only grow in upcoming years. Therefore, as a cloud-based company, you can significantly benefit from it. Organise remote working conditions for as many employees as possible so you can reduce unwanted costs like office rental. You will also be able to automate many tasks if you decide to scale down your workforce.

Hone Your Marketing Strategy

Not having a solid strategy in place, you will soon notice that you are getting lost and won’t be able to visualise exactly where you want to be. A reliable online presence and a quality marketing strategy for SaaS companies are essential since you will know what your target audience is and how to reach them. Reach your audience as precisely as possible, offering a personalised experience and optimising your strategy around them. 

Check for Hidden Costs 

Software use is popular among SaaS organisations that try to automate their services. However, since it is easy to use and download, you may not notice that you are using software with hidden costs that you pay for. We recommend you contact vendors to speak about potential usage 12-18 months down the line to ensure the app is useful for you and you won’t increase your spending over time thanks to useless software. Experts also advise you to pay attention to the fine print and ask all questions you want. 

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Consider SaaS Spend Management Software

All the above-mentioned points could feel overwhelming, but they don’t have to be this way. Using the right SaaS spend management software can help you automate lots of time-consuming processes so you can focus on what matters most – serving your customers. Startups and small businesses looking for the right expense management cards often compare Divvy vs Brex

Existing SaaS spend optimisation platforms will be able to help you identify all SaaS apps that you currently use, track and optimise subscriptions that can add a high value and reduce all unplanned or unnecessary expenses. 

Test New SaaS Software Before You Commit

Although most SaaS spend management apps and tools come with a free trial period, some don’t offer the same opportunity. While you may think that those apps that don’t offer trial periods are better, the truth is that it isn’t the case for all apps. We recommend you take full benefit of trials and check whether they come with all features you will need as your team scales. In fact, a trial time is an excellent chance to make your employees familiar with the software and check whether they are usable before paying for them.

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