Should you renew? When to say goodbye to software contracts

To renew or not to renew? That is the question. 

As you assess your company’s techstack, you’re likely facing the question of whether to renew or replace contracts that are nearing expiration. How can you still be sure the features and functionality of every software program your team uses are still a good fit for your employees? Is there a way your team determines if the SaaS application should renew or if the time has come to search for a different tool?

It can be hard to narrow down which direction to go in, especially if your organization isn’t utilizing a SaaS system of record. Thankfully, BetterCloud can help point you in the right direction by showcasing transparent user sentiment data.

By incorporating Pulse Surveys, BetterCloud can utilize this data and arrange it within your company’s very own user sentiment hub.

This data breaks down all of your company’s SaaS applications into one of four categories:

1. Replace the application or retrain employees on how to use its features
2. Consider eliminating the application
3. Renegotiate pricing before renewing the contract
4. Keep the application and consider expanding licenses

Find out how you can utilize this employee transparency into knowing when to renew vs. when to search for new software so you can be sure your company’s SaaS landscape has your employees’ best interests front and center.

When to renew a contract

Whether a contract was negotiated to run for 12 months or three years, sooner or later it’ll be time to decide if it’s worth investing in a renewal or not. Before having a discussion with your software vendor about renewing or letting it expire, there are certain things you can look out for to determine if it’s still a good fit for your team. 

First, check to see how much your organization is spending on that SaaS tool. Then, run it up against your company’s budget. 

Does an application of this price still work within your organization’s budget? If it does, you’ll also want to make sure that if you do choose to renew, the vendor’s price hasn’t increased, putting it outside your company’s SaaS budget.

Once you know more about the price, you’ll want to see if your employees are actually logging into the application on a consistent or regular basis. As a single source of truth, BetterCloud provides a utilization breakdown of every application within your tech stack, not just ones set to renew or expire. You’ll be able to take a closer look at active and inactive users, the monthly cost, and the cost per user.

Going alongside utilization is the allocation of seats or licenses. While you may have users logging into the application each day, how does it compare to the number of licenses you’re paying for? If your company is paying for 100 licenses, but only 70 employees are logging in to use the tool, it may be time to scale back and save money before renewing.

Mere logins don’t tell the whole story. Employee sentiment pulse surveys delve deeper into employees’ experiences and feelings about using the application. The surveys also provide insights into whether or not it’s critical or noncritical to their daily responsibilities. If they’re logging in, enjoying the features and functionality the app provides, and have marked it critical, then it’s time to happily renew.

Finally, take a look at the relationship you have with the software vendor. If a problem were to arise on your end, or if a question comes to mind that needs a fast answer, how does their customer service team respond? Do they leave you hanging or give you a response when it’s needed most? Similarly, do you feel confident that your company’s data is secure within the application?

These are all questions to consider before renewing. Customer experience is extremely important and should play a huge role in whether or not you renew your contract terms.

If you ask the following questions, and the answer is yes, then it’s time to renew the contract!

• Is the software still within our company’s budget?
• Are employees logging in and using the software on a regular basis?
• When they log in, are employees happy when they use the SaaS tool?
• Is the SaaS application critical to the work of your employees?
• Do you have enough seats/licenses of the software?
• Do you receive exceptional customer service from the software vendor?

When to search for new software

Now that you have a better understanding of when software should be renewed, what should you keep an eye out for that tells you that it’s time to search for other options on the market?

The first indicator that it’s time to search for a different tool is if the price has skyrocketed and it’s no longer in your company’s budget. Similarly, if your organization has seen a shift in budget allocation and there is less available to be spent on software, it’s time to search for a comparable tool for a cheaper price.

Once you know more about the price of the software and your company’s budget, are employees logging in? If the tool has sat idle in your tech stack, chances are good that employees are unhappy with the software, don’t enjoy using its features, and don’t find it to be a critical tool they need to get their role done.

Another interesting data point that can signify that it’s time to search for a different tool is if your company is paying for too many seats within a contract and they can’t feasibly be reallocated. If you aren’t able to distribute seats to employees in a way that works for everyone’s unique needs, then it’s time to find a tool that makes it possible.

Something else that may signify it’s time to part ways and shop for other options is if the software in question has overlapping features with a different tool in your company’s stack. You’ll also want to keep an eye out for instances of shadow IT. 

Did you just find out that the marketing team uses a similar software solution, with overlapping functionality, that they actually enjoy using? It could be time to make the switch to using that tool instead.

And finally, if your team is receiving poor or less-than-ideal customer service from the support team, it’s time to cut ties and find an application that has a support team that wants to get back to you in a timely manner and answer the questions you have. Or, if a SaaS app has recently experienced a data breach, it’s time to say goodbye.

If you ask the following questions, and the answer is no, then it’s time to search for new software!

• Is the software still within our company’s budget?
• Are employees logging in and using the software on a regular basis?
• When they log in, are employees happy when they use the SaaS tool?
• Is the SaaS application critical to the work of your employees?
• Do you have enough seats/licenses of the software?
• Do you receive exceptional customer service from the software vendor?

A smarter way to make decisions

No matter which direction you choose to go in, at the end of the day the number one priority of your organization should be that your employees are happy with the software choices your company is making. 

It goes without saying that the applications within your company’s landscape can play a major role in employee retention. When you consider that more than half of all employees are unhappy at work because of the software tools they’re using, and 76% of employees have said the software they’re using at work has made them consider leaving their jobs, knowing when to renew and when to search for new options is a big decision. Don’t take it lightly.   

Let BetterCloud show you the data you need to confidently make all decisions regarding software. Request a demo to see more of what BetterCloud can do for your company.