How to Achieve High ROI from Your SaaS Portfolio

The adoption of Software-as-a-Service (SaaS) solutions has revolutionized how businesses operate. From boosting collaboration to automating workflows, SaaS tools empower organizations to innovate and scale like never before. However, with the rise of SaaS, many companies face a common challenge: managing a sprawling SaaS portfolio while ensuring high return on investment (ROI).

Without proper oversight, businesses risk paying for unused licenses, redundant tools, and premium features that don’t deliver sufficient value. In fact, research shows that organizations waste up to 30% of their SaaS budgets on unnecessary or underutilized tools. To avoid these pitfalls, companies need a strategic approach to managing their SaaS portfolios, ensuring that every dollar spent contributes to business growth.

In this blog, we’ll explore practical steps to optimize your SaaS portfolio, reduce costs, and maximize ROI—helping your organization unlock the full potential of its software investments.

Why SaaS ROI Matters

Achieving high ROI from your SaaS portfolio is more than just a financial goal; it’s essential for driving operational efficiency, improving employee productivity, and maintaining a competitive edge. Here’s why focusing on SaaS ROI is critical:

1. Cost Efficiency: SaaS costs can quickly spiral out of control if tools are not actively monitored and optimized. Tracking ROI helps identify opportunities to cut waste and redirect budgets toward high-impact investments.

2. Strategic Alignment: SaaS tools that deliver high ROI are often those that align closely with business goals, ensuring your software ecosystem supports growth and innovation.

3. Improved Adoption: When employees see the value of SaaS tools, adoption increases, further enhancing the tool’s ROI.

By making SaaS ROI a priority, businesses can turn their software portfolio into a powerful driver of success.

Steps to Achieve High ROI from Your SaaS Portfolio

Here are the essential steps to ensure your SaaS investments deliver maximum value to your organization:

1. Conduct a Comprehensive SaaS Audit

The first step in maximizing SaaS ROI is understanding what tools you’re currently using and how they’re being used. Conduct a detailed SaaS audit to gain visibility into your software ecosystem.

• Which SaaS tools are in use across the organization?

• How many licenses have been purchased, and how many are actively being used?

• Are there any overlapping tools with similar functionalities?

A SaaS management platform like Torii, Lurel, or BetterCloud can help automate this process by providing insights into app usage, license allocation, and spending patterns.

Actionable Tip: Identify tools that are underutilized or redundant and make decisions to either optimize, consolidate, or cancel those subscriptions.

2. Align SaaS Tools with Business Goals

Not all SaaS tools are created equal. To achieve high ROI, it’s important to evaluate whether each tool aligns with your organization’s objectives.

• Collaborate with Stakeholders: Involve department heads to understand their software needs and ensure tools support their workflows.

• Set KPIs for SaaS Tools: Define clear Key Performance Indicators (KPIs) for each application, such as time saved, productivity improvements, or revenue generated.

• Evaluate Strategic Fit: Determine whether the tool contributes to key business priorities, such as scalability, customer satisfaction, or innovation.

Actionable Tip: Focus on investing in SaaS tools that directly impact critical business outcomes, and phase out tools that provide limited strategic value.

3. Optimize License Utilization

Unused or underutilized licenses are one of the biggest contributors to wasted SaaS spending. To maximize ROI, monitor license usage regularly and take steps to optimize it.

• Track Active Users: Use analytics tools to identify which licenses are being used and which are sitting idle.

• Reallocate Unused Licenses: Reassign inactive licenses to new employees instead of purchasing additional subscriptions.

• Right-Size Subscriptions: Downgrade or cancel plans that don’t match actual usage levels.

Actionable Tip: Implement a quarterly review process to ensure licenses are allocated efficiently and align with team needs.

4. Consolidate Redundant Applications

Many organizations accumulate multiple SaaS tools with overlapping features, often due to lack of communication between departments. Consolidating these tools can reduce costs and improve efficiency.

• Identify Redundancies: Use your SaaS audit data to find tools that perform similar functions (e.g., two project management apps used by different teams).

• Standardize Across Teams: Adopt a single platform that meets the needs of multiple departments.

• Negotiate Volume Discounts: Consolidating to one vendor may provide leverage for better pricing.

Actionable Tip: Engage employees in the decision-making process to ensure the chosen tool meets their requirements, encouraging adoption.

5. Track and Measure ROI

To ensure you’re getting high ROI from your SaaS portfolio, it’s essential to track and measure the value delivered by each tool.

• Calculate ROI: Use this formula: ROI = (Benefits - Costs) / Costs. Benefits may include increased revenue, time savings, or improved productivity.

• Monitor KPIs: Regularly evaluate whether tools are meeting the KPIs established during the alignment phase.

• Solicit Feedback: Gather feedback from employees to assess how SaaS tools are contributing to their workflows and productivity.

Actionable Tip: Create a dashboard to visualize SaaS performance metrics and identify areas for improvement.

6. Negotiate Contracts with Vendors

SaaS vendors often offer flexibility in pricing, especially for long-term customers or organizations with large user bases. Use your SaaS usage data to negotiate better terms.

• Leverage Usage Data: Present evidence of underutilized licenses to secure discounts or customized pricing plans.

• Ask for Bulk Discounts: If consolidating tools, negotiate volume discounts with a single vendor.

• Time Renewals Strategically: Reach out to vendors before contracts auto-renew to explore better options.

Actionable Tip: Use procurement platforms like Vendr to streamline the negotiation process and secure better deals.

7. Foster Employee Adoption and Engagement

A SaaS tool is only as valuable as its adoption rate. Low adoption can significantly diminish ROI, even if the tool itself is high-quality.

• Provide Training: Offer workshops, tutorials, and onboarding sessions to help employees fully utilize SaaS tools.

• Encourage Feedback: Regularly solicit employee feedback to identify pain points and areas for improvement.

• Integrate with Existing Workflows: Ensure SaaS tools integrate seamlessly with other systems employees already use.

Actionable Tip: Appoint SaaS champions within each department to drive adoption and serve as points of contact for troubleshooting.

8. Automate SaaS Management

Manually managing a large SaaS portfolio can be time-consuming and prone to errors. Automating processes like license tracking, usage monitoring, and cost analysis can save time and improve accuracy.

• BetterCloud: Automates SaaS management workflows, including onboarding and offboarding.

• Lurel: Provides insights into SaaS usage and helps optimize licenses.

• Torii: Tracks SaaS spending, detects redundancies, and streamlines procurement.

Actionable Tip: Use automation to identify opportunities for optimization without adding administrative burdens to your IT team.

Conclusion: Unlock the Full Potential of Your SaaS Portfolio

Achieving high ROI from your SaaS portfolio requires more than just choosing the right tools—it’s about actively managing your software ecosystem to align with business goals, reduce waste, and maximize value. By conducting audits, optimizing license usage, consolidating redundant tools, and fostering adoption, your organization can unlock the full potential of its SaaS investments.

Ready to transform your SaaS strategy? Start by auditing your current portfolio, setting clear KPIs, and leveraging automation tools to streamline management. With the right approach, your SaaS portfolio can become a powerful driver of growth and efficiency for your business.