Table of Contents
Table of Contents
According to Zylo’s 2023 SaaS Management Index findings, the average organization experiences 204 renewals each year – about one per business day. When it comes to SaaS, it’s important to stay ahead of your renewals to prevent automatic renewal surprises – and unplanned costs.
Follow this proactive SaaS renewal checklist to stay ahead of the game. And download a printable version here to save for later.
SaaS Renewal Checklist: Pre-Renewal
• Identify all SaaS applications. Discover all applications within the environment.
• Attribute application ownership. Determine cost and support accountability by business unit, team, or employee.
• Collaborate to define renewal goals. Align with stakeholders such as IT, Procurement, and business units.
• Measure end-user application utilization. Measure end-user utilization, adoption, and sentiment to inform renewal planning with data.
• Regularly evaluate costs, spending, and total cost of ownership. Track employee-led and direct supplier purchases as well as continuing transactions to understand cost of ownership and overall value.
• Create a calendar with all renewal dates and notification periods. Document each application’s renewal date and notification period (and details like license quantity and consumption metrics) in a centralized system of record
• Develop proactive renewal plans. Create and document a strategic renewal plan for every application; prioritizing highest cost or mission-critical applications first.
RELATED: 5 SaaS Renewal Best Practices
SaaS Renewal Checklist: At Renewal
• Activate renewal plan(s).
• Project growth of license and feature requirements. Consider pre-purchasing additional licenses or features at discounted rates as a hedge against future growth.
• Evaluate market and compare alternative vendors. Make side-by-side solution comparisons a routine process for renewals.
• Eliminate redundant applications. Eliminate redundant applications to reduce operational burdens.
• Level up application contracts and agreements where possible. Standardize widely deployed application types to leverage buying power and create custom contract terms.
• Utilize discounts and lock in pricing and discounts. Consider discounts possible under multi-year agreements and contract terms that limit price increases for subsequent renewals.
SaaS Renewal Checklist: Post-Renewal
• Update key purchase details. Document any updates to details such as pricing, features, consumption metrics, features, and services.
• Update renewal calendar for notification timing and renewal date. Document any alterations to renewal dates or notification periods in your SaaS system of record.
• Continue reporting and collaboration with stakeholders. Apprise stakeholders regularly on key metrics to encourage proactive planning.
• Ensure continual discovery and renewal plan creation for all new apps. Monitor the environment to ensure all applications meet renewal planning criteria.
By following this SaaS renewal checklist, you’ll have a great foundation to avoid automatic renewals. Take your strategy to the next level with our SaaS renewal guide and go into your next renewal with confidence.