Before this pandemic and crisis, the B2B market was experiencing continuous growth, and companies were investing in technologies to add to their tech stack to increase sales. However, in 2020, when the Covid-19 pandemic hit, many companies struggled to maintain their status and increase profitability; this meant reducing costs wherever possible, including those of redundant technology.
After two years, we’re still facing an economic downturn, and industry experts are convinced we won’t return to the old days. Our business practices have changed, and more social distance has equated to more reliance on technology. However, because of this crisis, companies now think twice before investing in technology than they did before, and now it’s all about smart investment.
Given the importance of technology stacks today, the question arises: how can SaaS companies reduce costs without negatively affecting sales?
This article will cover:
- What is a tech stack?
- How to evaluate your tech stack and reduce its costs?
- Don’t waste money on redundant technology
Let’s dive in!
What is a Tech Stack?
A tech stack, sometimes called the “solutions stack,” is the set of technologies used to build and run an application or SaaS product. It comprises software languages, frameworks, libraries, infrastructure, front-end tools, back-end tools, and more. The tech stack defines the entire development process for your software, directly affecting the time and money your company spends.
Now that you know what a tech stack is and how important it is to invest in a well-developed platform, you might wonder how companies can reduce their tech stack costs and get rid of redundant technology.
Next, let’s explore it!
How to Evaluate your Tech Stack and Reduce its Costs
When evaluating your tech stack, it’s important to consider which amenities or features you need to keep your business running, including associated costs. Once you have identified these requirements, it’s possible to identify ways to reduce these associated costs to meet your needs.
Here are some common cost-saving tips for your SaaS company!
Tip 1: Merge tools! Use all-in-one platforms
There is no point in having five or six tools for different tasks. Sometimes, all you need is an all-in-one platform that can solve multiple problems at once. This allows you to streamline your tools and processes, reduce the time you spend onboarding employees with your daily tools, and increase productivity.
If you haven’t found an all-in-one platform that solves all your customer’s needs or collects all the information you need to develop successful strategies, check out FROGED today. All its customer support, integrations, and product flows will bring your customer experience to the next level.
Tip 2: Eliminate manual work and automate tasks
Are you automating everything you can? Make sure the tools you currently use help you automate all your daily tasks, such as calls, emails, documents, and communications between departments. This can make the tasks easier, faster, and less error-prone.
Tip 3: Outsource
Companies outsource some or all of their work to another party as a form of subcontracting. This can range from providing consulting services to performing manufacturing tasks. Outsourcing can be an ideal option for companies with extra capacity or expertise, as it allows them to focus on more important tasks, leaving day-to-day duties to third-party resources.
Tip 4: Spend less on licenses
Are your employees using all the licenses you’re paying for? Make sure your teams are utilizing all the tools you’ve purchased. Instead of paying for multiple licenses, companies can try merging their software license needs into one. In the long run, this can save money, as there will be no need to replace or renew these licenses. In addition, this approach can assist organizations with tracking and managing software usage.
Tip 5: Improve goal and KPI tracking
Ensure you’re tracking the processes towards specific goals and objectives. This will result in better analyses and improvements to your strategy if needed. Additionally, KPI tracking can help managers execute more informed budgeting, better performance evaluations, and reliable decision-making.
Tip 6: Be specific
Another way to reduce the costs of your tech stack is by being specific to your business needs. For example, if your business deals with paperwork, you might only need one printer. If your business doesn’t have paperwork, you might be better off investing in a scanner. By being specific about what technology you require, you can avoid wasting money on unnecessary tools or software platforms.
All those tips will help you reduce the costs of your tech stack. Think smart and analyze every procedure of your company. We’re sure there are many ways to optimize your processes and reduce costs!
Don’t Waste Money on Redundant Technology
According to Vendr, the overall spend per company on software-as-a-service products is up by 50% compared to two years ago. This shows how B2B businesses especially focus on improving their technical aspects. However, what’s crucial is not to waste money on redundant technology.
To do so, research, read reviews about different tools, analyze your procedures, and thoroughly evaluate each application your company uses. This will help you better understand how your SaaS company operates, which will help you choose the best method for reducing costs and streamlining processes without affecting profitability. If you don’t know where to begin, start by following our tips!
Interested in learning more about tech stack? Book a demo with us to learn more about how with FROGED you can centralize customer support, knowledge bases, chat tools, and onboarding, all in a single platform, or check out our FROGED solutions and features.