Renewal Savings vs. Negotiation Time

Negotiate as early as possible

Those who start negotiations 90+ days in advance of contract renewal dates achieve significantly higher savings across all SaaS categories than they would if they began discussions under 30 days before - 49% more on average.

Contract renewals typically need less runway to start a negotiation when compared to a new purchase. However, procurement needs to be careful not to become complacent.

Significantly larger savings can be made in SaaS renewals if negotiations are started 90 days or more before the renewal date - 49% greater than if started under 30 days before, and 19% more if negotiations are begun between 30 and 90 days.

Notable examples include Analytics and Monitoring suppliers - with whom it’s almost a necessity to start renewal conversations over 90 days before the renewal date, otherwise the chance of discount improvement is almost nil. Start earlier though, and procurement can improve their discount on Analytics tools by an astronomical 74%.

It’s a similar story in many categories, from HR and IT infrastructure to Monitoring and Project Management. And in Customer Service, it’s even possible to more than double your discount simply by starting a conversation earlier.

Having a well-structured, collaborative and data-driven procurement workflow can give the procurement team the process they need to start negotiating as soon as possible. Many get stuck in trying to manually push new intake requests and renewals through the workflow and fight fires along the way, leaving them very little time to get ahead of the game and work on early negotiations.