SaaS Choosing SaaS Providers: Essential Factors For SMBs To Consider

[Brianna White]

When shopping for services, small businesses and startups often focus first on cost, but that’s not the only important consideration when looking for a software-as-a-service (SaaS) vendor. The right technology tools can streamline processes and help SMBs better serve their customers—crucial factors in determining whether a business survives and thrives or goes down in defeat.

It’s vital to carefully vet SaaS vendors to not only get the maximum ROI on a critical investment but also to establish a long-term partnership that can support your growing business in the years ahead. Below, 20 members of Forbes Technology Council discuss essential factors an SMB should carefully consider when choosing a SaaS provider. Paying attention to these details ensures the technology tool you choose is the right fit for your unique organization.

1. Platform Flexibility
   • Since every small business aims to reach the next level, I recommend asking potential vendors, “How flexible is your SaaS platform in terms of technology and customer support—can it adapt to our business as it grows?” Focus on scalability to handle growing operational needs, integration with existing tools, customization for changing requirements, and responsive support for quick issue resolution.
2. Customer Support Systems
   • While costs cannot be overlooked, it’s essential to understand the kind of customer support one can expect from the vendor in question. Many SaaS vendors sit in the critical paths of their customers’ products, so it is crucial to know whether the vendor provides robust service-level agreements and a direct line to their technical staff when things go wrong.
3. Long-Term Contracts
   • One essential question small businesses and startups should ask a potential SaaS vendor is, “What incentives and support do you offer for long-term contracts?” While SaaS can initially ease cash flow, over time, it could become more costly than on-premises solutions. Comprehensive environments and additional modules from one vendor can be more cost-effective.
4. Vendor’s Security Architecture and Longevity
   • There are two essential issues here. The first is all about security, and it’s especially important for small companies. You need to understand whether a SaaS product is introducing vulnerabilities by thoroughly assessing the vendor’s security architecture and knowledge. The second issue is the vendor’s longevity. Very low pricing may be unsustainable; if they go out of business, you’re left vulnerable and without support.
5. Vendor’s Company Culture
   • An essential question is whether the vendor is a fit for your company’s culture and whether they will be an extension of your team. Far too often, we focus on technical aspects when something far more simple—such as asking yourself, “Would I hire these people to work with on a daily basis?”—can make a massive difference.
6. Whether (And How) The Tool Saves You Time
   • While cost is a key driver for a small business or startup that’s considering value, the larger consideration is, “How does this enable or empower my team or company to do more?” In a smaller company or startup, it’s the drain on the employees’, founders’, and/or management team’s time that is a growth constraint. By focusing on freeing up time through tools where possible, you will further drive your growth.
7. How The Vendor Stacks Up To Competitors
   • Data integrity, service reliability, customer support, receptiveness to feedback, and continuous improvement are all important. When meeting with a prospective SaaS provider, ask, “Your SaaS competitor may come to me in a year with a better price proposition than yours. What can you say to me today that will persuade me to say ‘no’ to them?”
8. Self-Service Capabilities and Support
   • For SaaS AI solutions, have questions about self-service capabilities. Can you fix, update, and maintain the solution with your own team? What kind of data and AI expertise would you need? Will the vendor provide education for your team?

Discussion Questions:

1. What has been your experience with SaaS vendors in terms of platform flexibility and scalability?
2. How important is customer support to you when choosing a SaaS provider, and what level of support do you expect?
3. How do you assess the security architecture and longevity of a potential SaaS vendor?
4. How important is it for a SaaS vendor to align with your company’s culture?

Read the article: https://www.forbes.com/sites/forbes...iders-essential-factors-for-smbs-to-consider/