Step off the Subscription Hamster Wheel with a Renewal Calendar

Proactive procurement management allows companies enough time to anticipate renewals well in advance. This proactive approach gives teams more leverage to renegotiate favorable terms (and even source competitive solutions).

The key to getting ahead of your renewals involves gaining full visibility of all your contracts and critical deadlines. This is where an intuitive renewal calendar can help as it centralizes all agreements and automatically alerts you of important upcoming dates. Take this example:

Ben works in procurement, and oversees a large category of spend including nearly 100 different software subscriptions for his company. He’s been stretched thin lately, and spends his days just trying to keep his head above water. Somewhere between prioritizing new vendor proposals and expediting purchase orders, an upcoming software renewal slips through the cracks.

Weeks turn into months, and before Ben realizes it, the renewal date has come and gone. Now, Ben faces a harsh reality: canceling the contract or exploring alternatives is off the table, and he's forced to accept an unexpected (and unbudgeted) price hike for licenses his department barely uses. In the end, he’s left feeling frustrated and powerless.

Sarah also works in procurement and manages a similar category, but she has a trick up her sleeve: a renewal calendar and automatic notifications that keep her on top of her subscriptions. These capabilities give Sarah the foresight to research alternative solutions, compare pricing, and negotiate with maximum leverage.

The result? Sarah enjoys "renewal confidence": a state of control and peace of mind that allows her to proactively manage her spend and remain laser-focused on strategic business objectives.

Let’s delve deeper into how the combined power of a renewal calendar and automated notifications can help you regain control over your spend management.

Avoid the hamster wheel of missed renewals

Many organizations find managing their growing number of SaaS subscriptions to be a frustrating experience for all involved. Sometimes, automatic renewals slip by unnoticed, locking you into another term with a supplier you may not even need anymore. In fact, 80% of our customers say that they’ve had a contract auto-renew without their knowledge.

Other times, the supplier throws you a curveball by reaching out with limited notice before the renewal date. This short window leaves you with little time to negotiate or research alternatives, forcing you to accept the status quo or scramble for a last-minute replacement. In either case, you’re left with the feeling of being stuck in a vicious loop.

It doesn’t have to be this way. Through proactive renewal management, you can escape the web of missed deadlines and regain renewal confidence.

The benefits of proactive renewal management

1. Ensure you’re getting what you pay for

The months leading up to a software license renewal are a great time to assess what it’s worth to your organization. It’s normal for some apps to have usage peaks and valleys throughout the year, but the key question is this: are you getting the value that you’re paying for?

Unfortunately, too many organizations pay for subscriptions that they rarely, if ever, use. A report from Flexera found that nearly one-third of SaaS software spend is “underutilized or wasted.” The latter is known as “shelfware,” since it does little more than collect dust on a shelf.

A proactive approach to software management involves scrutinizing usage data well before renewals are up. This, combined with discussions with department heads, allows you to approximate the return on investment (ROI) for each subscription.

2. Secure better deals

It’s pretty simple—the earlier you engage with suppliers, the better deals you’re able to secure. Our internal data reflects this correlation:

• Organizations that kick off the process at least 6 months before the renewal date realize a 39% savings improvement on average. The savings gradually diminish the closer you get to the renewal date, averaging 22% at 60 days and 14% at 30 days.
• Companies who start the renewal conversation 90+ days in advance (compared to 2 weeks in advance) save 5X more money on average.
• Companies who start the renewal conversation 90+ days in advance (compared to 30 days) save 3X more money on average.

3. Strategic sourcing

Proactive software management can lead to much more than cost savings. With time on your side, you can provide more value to the business through sourcing. Companies that commit time to strategic sourcing are much more likely to identify alternatives that might be a better fit than your existing solution (which translates into improved company performance).

The software landscape is constantly evolving, and there’s a good chance that there are new options on the market. Even if you’d rather stick with what you have, performing strategic sourcing can improve your leverage when negotiations begin.

4. Keep your operations humming

Operational disruptions due to software expirations can be a major headache. In the worst case scenario, they can even impact client satisfaction.

With a proactive approach to software renewals, you’re in the driver’s seat. If your existing vendor can’t offer you an attractive price, you have plenty of time to find an alternative solution before your subscription runs out.

The benefits of proactive renewal management are undeniable, but you don’t have to do it all yourself. Top-tier procurement teams and innovative companies have a secret weapon: a renewal calendar with automated notifications.

Regain control over your spend with a renewal calendar

A renewal calendar is a centralized, automated system that acts as your command center for all your software subscriptions. It allows you to house every upcoming renewal date, contract detail, and other vital data about your software usage in a single platform. 

No more digging through emails, chasing down contract owners, or relying on memory. A renewal calendar provides a crystal-clear picture of your entire subscription ecosystem, empowering you to make informed decisions about your software spend.

Never miss a beat with automated reminders

Renewal calendars are much more than a static list of deadlines. When combined with automatic notifications, you take guesswork out of the equation.

These alerts, delivered via Slack or email, pop up well in advance of renewal dates, ensuring  you never miss a critical deadline such as a contract end date or auto-renewal window. This timely nudge allows you to proactively research alternative solutions so you can negotiate with confidence.

Proactive management in action

Think about a rapidly-growing fintech startup that uses a cloud-based CRM platform to manage its customer relationships. Their subscription auto-renews at the current tier, but a recent customer surge has skyrocketed their CRM usage. Their current plan no longer cuts it.

Fortunately, a timely Slack notification from their renewal management system alerts a procurement staffer about the CRM's auto-renewal in six months. They get to work analyzing usage trends and exploring alternative solutions. Armed with a clear understanding of their needs and market options, they confidently engage their existing supplier well in advance of the renewal to renegotiate the contract.

In the end, the startup agrees to a new contract with their existing CRM provider at a favorable rate. Without a heads-up well in advance of the renewal date, they may have been stuck with a plan that didn’t fit their needs for another year.

Take back control with Tropic’s renewal management solution

Renewal confidence is within reach with Tropic. Our comprehensive suite of tools empowers you to transform your approach to renewals and unlock greater leverage over your spend.

Never miss a renewal again

Scattered spreadsheets and frantic searches for renewal dates are a thing of the past. Tropic’s centralized renewal calendar provides a single source of truth for all your contracts. With a clear and comprehensive view of all upcoming renewals in one centralized location, you’ll never miss a critical date again.

Automated reminders

Addressing renewals at the last minute robs you of your negotiating power. Tropic’s automated alerts—sent via Slack or email—keep you informed about upcoming renewals well ahead of schedule. You’ll have ample time to negotiate for better pricing, evaluate alternative options, or cancel under-utilized services.

Renegotiate with confidence

Plenty of companies talk about their supplier databases, but in many cases, the objectivity of that data is in question. Tropic’s unique Price Checks feature provides unbiased pricing data from over 40,000 active SaaS contracts, giving you the upper hand during negotiations.

Effortless contract management

Your team has better things to do than spend time chasing down documents. Tropic allows you to upload and store all your contracts in one convenient location. Powerful filtering and sorting tools allow you to easily access the information you’re looking for, whenever you need it.

Optimize your SaaS spend

Realize a higher ROI on your SaaS subscriptions by optimizing license utilization, predicting cost fluctuations, and identifying potential savings opportunities—all in one platform.

Step off the renewal hamster wheel with Tropic. Sign up for a demo today and see what life is like with greater visibility, control, and leverage.