SaaS renewal best practices: Tips to effectively manage each SaaS renewal process
It’s common these days for businesses and teams to use so many SaaS subscriptions that they lose oversight capabilities not only for usage, but also for SaaS renewal best practices. In fact, companies used an average of 110 SaaS tools in 2021 – a 38% increase from 2020 and a nearly tenfold increase since 2016. What do you think the future is going to be like?
Especially for larger organizations, there may be an extremely high number of SaaS renewals happening regularly. Many of which are automated and might challenge teams if the proper SaaS journey is not in place. Additionally, SaaS contract cancellation can be tricky depending on the type of platform and license. Monthly pay-as-you-go models may let you quickly terminate with the click of a button. However, enterprise SaaS software contracts may leave you stuck in a yearly contract with no opt-out. Keeping these in mind is important when considering SaaS renewals.
To ensure that your teams are managing SaaS contracts and any renewal process effectively, we’ve covered the main pain points. Here is a list of eight SaaS renewal best practices to keep in mind when dealing with SaaS companies. Get your SaaS renewals in order early from the first step with careful support and a key plan. Ready for the best practices? Continue reading.

Best practices for SaaS subscription renewals
Define ownership for each SaaS subscription
Problem:
With so many SaaS resources, it’s common for companies to lack clear documentation on SaaS ownership.
SaaS renewal best practice:
Assign SaaS ownership from the very beginning is your solution. Consider the business unit and the expense records to make this decision. If the owner leaves the organization, their SaaS account must be reassigned.
Check renewal terms in software contracts
Problem:
Software vendors have various language in their terms of service and requirements, as well as their SLA.
SaaS renewal best practice:
Regularly review SaaS renewal contracts, terms of service, and SLAs. Make sure to pass to your legal team for review so that there are no surprises when renewal dates arrive.
Build a long-term calendar for SaaS renewals
Problem:
Many SaaS tools auto-renew, and even those that don’t will have contract end dates for customers.
SaaS renewal best practice:
Keep all this information in an automated SaaS renewal process calendar that notifies you or the respective SaaS owner well in advance. That way your team has plenty of time for negotiations with SaaS companies (or to decide if you even need the subscription anymore).
Watch out for auto-renewals
Problem:
The SaaS tools that auto-renew can slip by under the radar, making it difficult to renegotiate terms or cancel in time a subscription.
SaaS renewal best practice:
Use the automated SaaS renewal process calendar to notify you when SaaS renewals approach with plenty of buffer time. Many of the applications require you to reach out to the vendor 60 or 90 days in advance of the SaaS renewal process if you want to cancel. So, keeping the date in mind is key – otherwise, you could end up in a new contract for a tool you don’t even need.
Know state laws for SaaS renewals
Problem:
Evergreen contracts are ones that automatically renew after the expiration of the initial term. During the initial agreement process, the parties agree that the contract automatically rolls over until formal termination.
SaaS renewal best practice:
A SaaS renewal best practice to understand your state laws regarding evergreen SaaS contracts and other clauses in your agreements. California, Colorado, Delaware, Illinois, New York, North Dakota, Vermont, and Washington DC all have recent changes to laws specifically for automatic renewals. For example, businesses selling licenses in California are required by law to notify customers 15 days prior to their renewal date with an option to cancel. Understanding various state laws is beneficial when dealing with enterprise software licenses.
Store contract details in one place for easier management
Problem:
Many businesses fail to create a well-rounded place or process for all SaaS contracts to be stored, making it a challenge to identify details when needed about any subscription.
SaaS renewal best practice:
Store all contracts in one shared drive, and pull out basic details for easy access if you can. For example, add the following to a dashboard:
- Category
- Start date
- End date/ length of SaaS renewals process term
- Volume/ number of seats
- Contract value
- Owner
- Vendor contact information
- SaaS renewal process details

Ensure visibility of all SaaS data
Problem:
Companies lack visibility into their total SaaS spend process, and how those expenses break up across tools.
SaaS renewal best practice:
Regularly track all expense transactions to identify any SaaS and/or cloud-related spending. Ideally, this would be compiled in one place for the whole organization.
Talk to your SaaS supplier about options
Problem:
SaaS companies regularly update their platforms, pricing, and features. At times, customers will be unaware of these recent changes and updates to the SaaS software service.
SaaS renewal best practice:
SaaS loyalty is the practice of remaining a long-term customer to a specific platform. This can be while working for a single company, or as you transition to different ones throughout your career. Speaking to your customer service representative and forging a relationship with them is beneficial to understand all of the feature upgrades that you can include in upcoming SaaS renewals for you to drive more value from your contract.
Track usage of each SaaS tool and renewal process
Problem:
Business needs change, and not every SaaS subscription will be needed forever. Oftentimes an application will have little to no usage but may continue to get renewed because the owner or procurement team doesn’t realize the process is no longer needed.
SaaS renewal best practice:
To help eliminate any software that is underutilized, take a look at historic and current usage trends or data across each application. This solution can help you decide if tool resources can be downgraded (e.g., fewer seats, lower tier, etc.) or canceled altogether.
Create a SaaS renewal strategy
Problem:
Companies lack defined SaaS renewal management processes and an overall strategy, leading to unnecessary spending, confusion, and inefficiency.
SaaS renewal best practice:
To get your SaaS renewal process under control, create a strategy with clear guidelines for ownership, negotiation, auto-renewals, and more. Ensure this data is a written document that is easily accessible to any employee that will need it.

Avoid spreadsheets and receive support
Problem:
Many companies’ first instinct is to track SaaS data and tackle renewal process management by using spreadsheets, but this is inefficient and ineffective.
SaaS renewal best practice:
Avoid spreadsheets for SaaS data and renewals. Instead, use an automated platform like Sastrify to put your SaaS tools on autopilot. Our team will give you a quick onboarding for your tool landscape to our all-in-one, spreadsheet-free platform. You’ll get access to a streamlined overview of your usage, spend, security risks, and other insights. Expect key solutions for all your SaaS problems.
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