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HomeComputingSoftwareTop 5 SaaS Spend Optimization Strategies You Need to Know

Top 5 SaaS Spend Optimization Strategies You Need to Know

SaaS Spend Optimization Strategies
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If you’re reading this post, you’re probably spending more money on SaaS solutions but you can’t figure out how to optimize and cut costs.

You’re on the right page.

The drastic switch from in-office to remote working has led to an increase in demand for SaaS solutions that enable communication, remote collaboration, and other operations.

Due to this shift organizations are spending more on SaaS subscriptions.

Here is the proof:

In 2022 alone, companies with employees below one hundred spent $487,301 million on SaaS solutions:

Image via Vendr

Surprisingly, 29% of SaaS software expenses are underutilized or go to waste.

So how do you optimize your SaaS spending and cut costs in the face of this rapid growth?

This article outlines practical strategies for managing expenses in B2B SaaS subscription businesses.

Let’s get started.

What is SaaS Expense optimization?

SaaS expense optimization involves the active process of determining the most efficient ways to cut costs related to your SaaS usage needs and subscriptions while sustaining daily business operations.

Often, companies overspend on SaaS solutions due to:

  • Duplicate applications: These are SaaS platforms that solve the same problem. For instance, Google Drive and Dropbox.
  • Forgotten cancellations: These are apps or licenses with auto-renewal mode turned on that you rarely/never use but they keep on renewing.
  • Licenses that have been discontinued: These are unrevoked licenses from employees who have left your organization.
  • Unoptimized licenses: This includes the cost you incur for costly licenses that could have been purchased for less.

SaaS spend optimization plays a critical role in evading SaaS waste, avoiding unnecessary security gaps, and ultimately lowering SaaS spending by keeping track of existing SaaS solutions and detecting under-utilized applications.

That said, here is how to optimize SaaS spending effectively:

1. Leverage Automation Where Possible

One of the most effective strategies to optimize expenses in B2B subscriptions is to leverage automation.

With the right automation tools, you get valuable insights on usage, spending, security risks, etc.

For instance, with a subscription management system like Younium, you get instant access to real-time reports with vital information like subscribers registered daily, outstanding accounts, etc.

Besides, a subscription management solution enables you to make data-driven forecasting so that you can plan for your expenses appropriately.

2. Check Your Current SaaS Solutions

The best way to start optimizing your B2B SaaS subscription expenses is to conduct an inventory check of all your current SaaS tools.

Even though this exercise can be time-consuming, it will be worth it once you figure out the SaaS tools you currently use. Who knows, you might find a host of idle apps that are consuming your budget yet you don’t need them.

From project management tools and communication apps to CRM and security tools conducting thorough inventory checks will help you unravel underutilized solutions and licenses.

3. Get Rid of Unused or Forgotten SaaS Solutions and Licenses

Another practical SaaS expense optimization strategy is to find SaaS applications and licenses that are eating up unnecessary costs and remove them.

After conducting a thorough inventory check, follow the two steps below:

  • Get rid of SaaS applications and licenses used by employees who left: Here, you’ll need to remove applications and discontinued licenses of employees who are no longer working with your organization.
  • Get rid of any unused SaaS solution: As seen in the statistics mentioned above a bigger percentage of SaaS solutions and licenses are underutilized.

Remove all apps and discontinue licenses that are rarely or never used.

4. Keep Only SaaS Apps and Licences You Need 

With SaaS solutions, you can easily upgrade or downgrade at all times.

By keeping the SaaS apps and licences you really need, you save a lot of expenses.

To maintain the right size SaaS licenses, determine how your business uses these apps and licenses.

Keeping track of how your team utilizes the available apps using a robust SaaS management solution to identify underutilized apps and licences.

For instance, if you identify an application that hasn’t been used for a long period, you could consider downgrading it when the subscription period ends.

After all, most SaaS solutions enable downgrading. For instance, most recurring billing software solutions like the ones featured by Attrock come with multiple pricing plans.

This means that when you find that employees aren’t using particular software regularly, you can consider choosing a lower plan.

Besides, by understanding how your organization utilizes the SaaS solutions you already have, you can find out users who don’t need a premium license or features that come with an additional cost.

5. Negotiate With SaaS Providers

The beauty of SaaS solutions is that they are scalable and flexible. You can leverage the flexibility aspect when optimizing expenses in a B2B SaaS subscription.

Negotiate contracts and get better deals. In most cases, you can negotiate based on how long you’ve been using the provider, the volume of apps you use in your organization, future promises, etc.

Att: Want to start a B2B subscription-based business but aren’t sure how to go about the whole business formation process? Check out this post by SmallBusinessHQ for a list of business formation services that can help you.


Underutilized or unused SaaS tools and licenses can drain your organization’s budget without your knowledge.

Effective SaaS spend optimization can help you eliminate wasteful SaaS spending, save company time during compliance, improve productivity levels, control employees’ expenses, cut costs, and reduce security risks.

Make SaaS expense optimization an essential action item for your subscription business.

Author Bio 

Reena is the Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers human resources as the most valuable asset of a company. In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.

Social connects: LinkedIn, Twitter

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