The New Generation of SaaS: Doing It All, Doing It Well
For software buyers, the platform of the moment is the one with multi-functionality that acknowledges all aspects of your organization.
Data tells us SaaS vendors are consolidating features to bring more value to customers looking for extraordinary value. The outcome for organizations is that all lines of business are more in sync than ever before, and software expenses make more sense.
Trend alert: Software renewals are beating new purchases
According to the Q3 2023 SaaS Trends Report from SaaS marketplace Vendr, net new software purchases are down 37% year over year.
For the first three quarters of 2023, a staggering 81% of SaaS purchases were renewals, with only 19% being new purchases. Compare that to the previous year, when 70% of SaaS purchases were renewals and 30% were new.
In the standalone Q3 2023, net new purchases accounted for only 17% of transactions on Vendr’s platform, marking a downturn even over the course of the year.
Some other insights include:
- The average buying cycle for new software purchases has increased from 32 days in 2020 to 44 days in 2023. That’s a jump of 37%.
- The software renewal buying cycle takes even longer at 51 days as of Q3 2023—but as we noted, these transactions are more likely to close.
- Vendr predicts the consolidation trend will continue into 2024.
The motive behind SaaS consolidation and why it matters
The data tells us that SaaS buyers are increasingly focused on securing the best deals for renewals rather than acquiring new software. Despite that, they need more and more functionality given the importance of cross-departmental efficiencies, deep business insights, and seamless customer communication.
One software, all lines of business
The days of buyers picking and choosing software based on niche functionality are long gone. In its place, you’ll find multi-functionality software that serves as many lines of business as possible.
For example, Built is a place where business functions come together to serve real estate lenders, builders, inspectors, developers, and borrowers alike. Having all lines of business—from CRE buyers to asset managers and everywhere in between—calling the same software home makes a world of difference.
Some key benefits of having the different arms of an organization on the same technology system include:
- Better communication between departments — Hear why one builder says Built “simplifies the entire draw process”
- Higher rates of customer loyalty and satisfaction — Learn why one mortgage lender says Built is “a protection to the borrower”
- Easier tracking of documents, records, and versions — Check out our webinar on how Built’s two-way Excel integration streamlines this
- Greater ability to assess risk and proactively address it — Download our e-book on Built Reports to get the full scope of possibility
- More chance of conveying software’s value to financial decision makers — Learn more about the multifold value of Built straight from the source
Built can reduce draw times by at least 50%, enhance inspections with greater accuracy and efficiency, and predict risk at a granular level—just to name a few of its capabilities. In this example alone, the software satisfies the needs of multiple lines of business, solidifying the platform as capable and valuable in the construction finance space.
Renew > New
As renew beats net new in software purchases, one thing is quite clear: The more value a platform harbors, the better off all parties will be. With SaaS buyers more focused on cost- and organization-effective deals, consolidating functionality into a single technology platform serves buyers and providers well.
Built exemplifies this trend with grace. Request a demo to see how the platform streamlines workflows and boosts business performance from all angles.