If you're like most businesses, your software renewal negotiations probably aren't as straightforward as you'd like them to be. You might feel like the vendor always has the upper hand, and that you're not getting the best deal possible. But with the right tools, you can renegotiate your software renewals and get a better deal for your business. In this blog post, we'll discuss some of the best tools to help you during your renewal conversations.
Tip one, measure the time applications are being used and by what teams. When it comes to software, one of the most important things to keep track of is who is using it and how much. If you don't know this, you run the risk of perishable value - that is, value that you can't get back once time has passed. This is like a movie ticket or a seat at a ballgame. Once the time has passed, that inventory, or chance to be productive is gone. In this case, the inventory is the prepaid value of time spent on the app. Knowing this, what is your most expensive software application per user hour? By keeping track of this information, you can make sure that you are getting the most bang for your buck.
Tip two, continuously measure the digital employee experience. Running an annual or quarterly IT survey rather than continuously monitoring the digital employee experience is like running your business with only a balance sheet and no income statement. Email surveys either get ignored or you have to remind the respondent multiple times to get a reasonable response rate. Also, these surveys are usually sent quarterly or annually which means the responses suffer from the availability hieratic and only measure the experience at a point in time rather than continuously. The devil is in the details and the details fade as more time passes between the experience and the measurement of the experience.
Tip three, It's no secret that software margins are among the highest in the business world. That's why, as a savvy consumer, you should always wait until the last week of the quarter or even the end of the year to buy software. By renegotiating during these periods, you can often get a significant discount off the list price. And because most sales and customer success leaders are incentivized based on top-line growth or retention in a quarter, they'll be more likely to give you a good deal if it means they can close out the quarter or year on a high note. So don't be afraid to ask for a discount - you may be surprised at how much you can save.
Tip four, As anyone in the business world knows, competition is always a factor to consider when evaluating any product or service. This is especially true in the software industry, where there are often dozens of competitors offering similar products at widely varying price points. When evaluating a software company, it's essential to keep an eye on the competition, both in terms of features and pricing. By quickly doing a Google search of the company you're considering, you can get a good sense of who their competitors are and what they're offering. Even if some of these competitors are offering limited features or support, it's important to take the time to request a demo and get to a pricing call. By doing so, you'll create buyer negotiating power from what is likely a hyper-competitive marketplace.
In conclusion, by following these tips, you can be sure to get the best deal possible when renegotiating your software renewals. With the right tools and approach, you can save your company money and ensure that you're getting the most value for your investment.
What tips do you have for renegotiating software renewal?