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6 common mistakes to avoid while buying software

6 common mistakes to avoid while buying software

Buying the right software for your business is an integral component of your setup. With the boom in the tech industry, there has been a rapid development in SaaS (software-as-a-service) platforms for businesses to utilize. Whether you are looking to make your operations process more efficient or trying to save costs, some mistakes could prove expensive. So, here are a few common mistakes when buying software and how to dodge them:

Not defining your needs
Your business goals can determine what you are looking for from your software. Depending on what you need to automate, your company’s size, and your goals, create a list of features that you would expect in your ideal SaaS. This will help you shortlist your options. One of the most common mistakes businesses make is buying software that is too complicated for them or picking one that does not have enough features to allow for growth. As every business is unique, it is in your best interest to consider all your needs before buying software. 

For instance, if you are looking for customer communication and engagement software for your business, you may want to look for features like a customer contact and interaction database, engagement analytics, content personalization, and audience segmentation capabilities. Features like journey mapping, artificial intelligence-based recommendations, and support for multi-channel customer interactions, such as over email, push notifications, live chats, and messaging apps, can also come in handy.

Failing to shop around
Don’t just pick the first platform you find; shop around. Not only can this help you find software that works better for your business, but it may also help you save costs. Instead of choosing your old contractor or picking the first software you find, check out all your options using a method called “three bids and a buy”. This will encourage you to compare similar products, and make a data-led call on features, contracts, and pricing, to support your business needs better.

Considering too many or too few viewpoints
Having too many people in the approval chain can delay the software-buying process significantly. Similarly, having too few viewpoints may make you miss key business requirements, costing the business. To streamline the process, consider approvals from the following stakeholders:

Department head: The department head knows the project best and will be able to evaluate the feasibility of the software.

Finance team: The finance department is responsible for releasing funds and ensuring the new software falls within the budget.

Security team: Consult the team here to ensure the security of data and privacy for all company stakeholders and clients.

Legal team: Whether outsourced or in-house, your legal team will help you determine and better define the terms of the contract, and point out loopholes, if any.

Relying on the wrong recommendations
When looking for new ideas, you may tend to talk to friends and acquaintances for suggestions. This helps gain a better understanding of the software in action or possible problems that you may have to deal with when working with a particular SaaS. However, it is important to be cognizant of where their opinion may be coming from—they could have used the software for a different type of business, industry, or department or used an older version a long time ago. As technologies advance so rapidly, SaaS applications are also constantly evolving and adapting. Although reviews are helpful, they need to be considered in the right context and then applied to your business. Instead of solely relying on reviews, ask your contacts for industry-relevant vendors you can talk to, and then reach out to them yourself.

Not planning for the future
One of the biggest mistakes to make when choosing new software is failing to consider organizational growth in the coming years. As your business grows and evolves, the software also needs to. Look into flexible solutions so your software can continue to adapt to your business needs.

Choosing the lowest-priced option
As appealing as the price may seem, it cannot be your sole deciding factor when choosing a new business software. What’s more? Cheaper software may come with additional operating costs. Consider the overall cost when choosing software. This includes hardware, SaaS subscription fees, implementation, maintenance, integration, and training costs. In addition to the points discussed above and the price, take into account the ease of use of the software and your team’s ability to handle it.

Avoiding these common mistakes when buying business software can help you stay on the right track and find the best deal for your business.

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