When negotiating a SaaS contract renewal, you’re much more likely to get the best deal if you have the inside scoop on how the company runs their negotiations. That’s what this Sastrify blog series has been all about: giving SaaS buyers our best tips to optimize their contract during renewal discussions.
In recent weeks, we’ve brought you exclusive subscription management and renewal tips for tools like HubSpot, Segment, Tableau, Datadog, and Salesforce. Coming soon: Mixpanel, Docusign, and much more.
Today, we’re talking about Zendesk.
What is Zendesk?
Zendesk is a cloud-based customer service platform that enables organizations to communicate with their customers via text, mobile, phone, email, live chat, and social media. The company was founded in Copenhagen, Denmark and has more than 200,000 customers worldwide.
Top tips when renewing your Zendesk subscription
When it’s time to negotiate your Zendesk renewal contract, or if you’re starting with the tool for the first time, these are our top 6 tips to get the best deal terms.
1. Get the best Zendesk discounts at fiscal year end or end of quarter
As with most SaaS vendors, timing is crucial to get the best deal. Zendesk reps tend to give more discounts as they near the end of their fiscal year (December 31st) or the end of each quarter (March 31st, June 30th, September 30th).
Zendesk reps and teams are trying to hit their targets at these times, so you have a better chance of getting better discounts and contract terms when you sign the contract updating your Zendesk Subscription close to these dates.
2. Get extra discounts on line item volume, total contract volume, and longer commitment periods
When you receive your quote, start by reviewing your price per line item and then the total contract amount. (Sastrify has benchmarks that can help you gauge the best possible price – contact us to learn more.)
Remember to look over the zendesk master subscription agreement, where your updates and asks to their contract will have to deviate from. Understanding the baseline contract will help you down the line in negotiating differences that work more to your benefit.
Zendesk offers discounts in several areas. The first is volume: you can ask for a discount on the volume per line item as well as one-off discounts on the total contract volume.
The second is commitment: As with many SaaS companies, a longer commitment means higher discounts. With Zendesk, you’ll need to sign a multi-year contract of at least two years in order to get a discount in this area.
3. Plan ahead for Zendesk agent count growth and bundle when possible
Planning ahead for your future growth almost always pays off, and doing so with Zendesk subscriptions is no different. If you can bundle at least 10 at a time when adding additional agent seat count Zendesk, you could receive a discount on the agent price.
If you’re willing to go into pre-commitment, it’s more likely that Zendesk will agree to map this out in your contract; otherwise, they would add additional users throughout the contract term at list price. Planning is key!
4. Actively manage and analyze your Zendesk account usage to avoid unnecessary charges
No one wants to pay for features or volume they don’t use. That’s why it’s important to actively manage and analyze your Zendesk account and usage to watch out for unnecessary spend.
One area to watch: phone numbers. Be sure to actively manage the phone numbers you are using in your subscription to avoid charges on unused phone numbers. That would just be a waste of funds.
Also keep an eye on your usage to make sure you are not overpaying for underconsumption. Review the Zendesk Suite volume limits and analyze whether something needs to be changed. Upon renewal, make use of your Customer Success Manager (CSM) and request a usage report. Your CSM will also help you to identify hidden gems in the tool that can aid in driving user adoption.
5. Evaluate your needs in terms of number of communication channels in Zendesk
Many companies these days are holding customer service conversations on multiple channels. Since Zendesk enables users to utilize a range of channels – text, mobile, phone, email, live chat, and social media – it’s worth taking the time to analyze your requirements and which plan might be right for you.
Evaluate whether your business might need a full suite in order to leverage multiple integrated communication channels in Zendesk, or if a smaller plan will suffice.
6. Work to establish a long-term relationship with Zendesk
Finally, focus on establishing a long-term relationship with Zendesk. Supplier relationship management is essential with any vendor, but we’ve definitely seen solid relationships benefit the Zendesk customers we’ve worked with.
If Zendesk feels there is a good relationship with the customer, they are committed to finding the best deal. That’s a win-win.
Get the best Zendesk contract with Sastrify
Have you been enjoying the advice in this series? All the tips come from the procurement and negotiation experts at Sastrify, who can help you get the best prices on the market for your SaaS licenses.
Combining these tips with the right timing and preparation can help you achieve the best outcome for your SaaS contracts. Sastrify knows best how to approach Zendesk in negotiations to ensure you end up with the best deal terms possible.
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