How to use SaaS management and benchmarking data to gain control of your SaaS spend
Alex Millar, CPA
February 8, 2023
Eliminate guesswork with SaaS benchmarking data
SaaS has become the go-to solution for businesses seeking a more efficient way to manage operations. However, SaaS is often the second-largest expense for companies after payroll, meaning that it's easy for these costs to get out of control. In this post, we'll explore how to gain control of SaaS spend using benchmarking data.
What is SaaS Benchmarking?
SaaS benchmarking is a way to compare and measure your spending against different industries or competitors. By measuring your performance against others, you can identify your strengths and weaknesses to make necessary adjustments to stay competitive. The difficulty with SaaS data is that most of the information you seek is not readily available. Many companies don't disclose their pricing, meaning gathering this data on your own is difficult.
What type of SaaS benchmarking data is important?
The two types of SaaS benchmarking data you should gather when making decisions surrounding your stack include:
Qualitative data: Review sites like G2 and Capterra or community forums like Finance in Tech gather sentiment on popular SaaS. You must be careful when assessing review data, as it's difficult to determine whether the review is genuine.
Quantitative data: Gathering subscription and pricing comparisons from vendors like Hubspot, Salesforce and Amplitude are a highly actionable way to compare spend. If you know other companies are paying less than you, there's a chance you can renegotiate or reduce your costs.
Benchmarking your SaaS Spend
Before benchmarking, the first step is consolidating your SaaS using a tool like Hudled. This way, you know what tools you're using (so you don't miss anything). From there, you can prioritize your most significant SaaS spend where there is the biggest opportunity.
When you're benchmarking your SaaS, three key things you want to check for are:
Total spend by industry: What are other companies like me spending on a particular vendor
Price: For each subscription or product for a vendor, are you paying the list price? If you are being offered a discount, how it compares.
Terms: What is the billing frequency that other companies have? For cashflow purposes, changing from annual to quarterly billing may be more favourable.
How we discovered 11K of savings for Fullstack Advisory
Fullstack Advisory is an acclaimed firm that provides accounting and advisory services tailored explicitly to technology and online businesses. Focusing on delivering top-tier tax and accounting solutions, they have successfully served over 400 tech companies in Australia, USA, UK, and South-East Asia. Fullstack was looking for greater visibility on their SaaS stack and engaged Hudled to run a SaaS audit. Our audit identified $11,374 of actionable savings, nearly 10% of their annual SaaS cost.
Taking Action on Insights with Hudled
SaaS Benchmarking data adds a new layer of context that will help you justify the cost internally to your company. With Hudled, you can gain control of SaaS spend while accessing benchmarking data to see where you can save.