Subscription-based software has become the standard for all kinds of business functions, and it’s clear that people enjoy its ease of use.
Statista forecasts that worldwide revenue for software as a service (SaaS) is expected to reach $206 billion in 2022.
While the accessibility of subscription software helps businesses evolve, it also presents a risk of unnecessary spending. You could be paying monthly fees for platforms your team barely, or never, uses. If you’re in professional services, you could be especially vulnerable to excess because of the desire to support your client relationships with the latest technology.
Let’s discuss how to avoid this trap. We’ll cover:
You can probably guess that there’s no universally ideal number of software platforms. Every business is different, and its needs change over time.
Here are some important factors to consider in determining the ideal amount of software your business needs right now:
All of the above criteria are a good starting point. Still, your utmost concern is likely to be the financial leakage your business might be experiencing due to unwise tech-related decisions.
We’ll use a real-world scenario to conceptualize how hidden costs may seem like perfectly reasonable expenses until you dive deeper.
For example, let’s say you run an accounting firm with 10 employees. There are some types of software that are nonnegotiable: a tax program and a client billing and invoicing platform. You might also want to have a payroll solution, time tracking and project management software, a client portal, email marketing software, a social media post scheduler or a CRM.
Consider what these options would cost if you paid monthly for each.
This may seem like a relatively short list, but there’s a good chance you’re paying more than you have to.
✳️ Perhaps you discover that your team has been too busy to send a marketing email in over three months. Finding a solution that offers a free tier for one user license could save you $35 a month.
✳️ Then, you realize your billing and invoicing would be a lot easier if it were synced with your time-tracking software. You find one that has both functions and save another $70 per month.
✳️ Your client portal isn’t being used often and doesn’t save your team much time because it’s not integrated with your project management software. Remove it from your tech stack, and you’ll save $95 a month.
✳️ The tax software you’ve been using for years is frustrating and not as modern as you’d like it to be. It could be time to move to that new one you’ve heard about, pay annually rather than monthly, and save $550 a month.
✳️ If you’re honest, your team uses your CRM as a contact database but doesn’t utilize its more advanced sales funnel features. That new tax software you’ve decided on has contact management built in and could serve the same purpose. Cancel your CRM, and you’ll save $175 per month.
Altogether, these decisions result in $925 worth of savings a month — $11,100 a year!
The above is a conservative, small-scale example of how significant cost savings could be right under your nose. While your numbers may be much more complex than this, the core process of discovering ways to consolidate applies to most businesses.
Investigating opportunities to hold onto capital is especially critical in a period of high inflation.
And no matter the state of the world economy, this is not an evaluation you’d want to do just once. A 2020 SaaS trends report by Blissfully showed that SaaS waste is doubling year over year. Your team could easily fall back into the same habits of using redundant software, especially quick-to-download apps that are only used by a few people.
Choosing the right tech stack can sound like an intimidating process, especially if you haven’t had the time to be conscientious about streamlining software until now. Following a clear set of steps can help.
Would you believe this step-by-step process could be even more straightforward? Having one core platform that manages the entire client journey, from sales opportunity status to recurring work, can save you the headache — and the cost — of having to consolidate over and over.
See how it feels to know your subscription is worthwhile. Schedule a demo of Accelo.