Most companies now use more than 100 SaaS applications, but almost half of those licenses are not used at any given time.
That gap is hard to see without something to measure it against, which is exactly what a SaaS benchmark gives you: a way to compare your performance to the market and set realistic targets.
There are about 17,000 SaaS providers in the US alone. If you choose a tool without a clear process, you often end up overspending, retraining your team, or moving your data again the next year.
A Saas pricing benchmark helps you make a smarter choice. It lets you compare your options to your real needs before you commit, instead of relying on gut feeling or a vendor’s sales pitch.
What are SaaS pricing benchmarks?
SaaS pricing benchmarks are a means of comparing different software and online services to find the one that best fits your needs and industry.
The right benchmark surfaces the option that matches the actual requirement, not just the loudest marketing.
Companies can choose from many different metrics when benchmarking Having so many options can be helpful, but it can also make things confusing.
A company handling large volumes of data needs strong storage and processing capacity. A marketing-led team needs automation features. A team focused on collaboration needs solid communication tools.
It’s easy for a SaaS business to get overwhelmed by too much benchmark analysis and lose track of how to use the results. One of the most important choices is deciding which benchmarks to focus on.
Why is SaaS benchmarking important for business
A good benchmark gives you an objective way to compare options. It looks at things like features, price, how easy it is to set up, performance, compatibility, and scalability, instead of just trusting what one vendor says.
Vendor information only gives part of the picture. User reviews and independent tests help fill in the gaps. Knowing the market prices also helps you negotiate better deals.
Benchmarking also saves you time and money. Picking the right tool from the start helps you avoid trial and error, and reduces later costs like training, integration, and moving data.
Benchmarking also helps you stay competitive. SaaS features change all the time, so checking benchmarks regularly keeps you up to date on new features, trends, and what others in your field are using.
→ 💻 To learn more about managing supplier relationships, check out our guide to vendor management.
Where to find reliable SaaS pricing benchmarks data
Choosing the best online software for your business isn’t easy. Benchmarking data can help you make a smart choice and streamline the buying process.
You can find this data from many sources, each giving a different view on how software performs.
1. Software comparison sites
These sites allow users to research and compare the features, pricing and reviews of different SaaS products.
These sites are helpful when the reviews come from real users, so watch out for fake or ai generated reviews. Also, check that the site isn’t earning affiliate income from the software, as this can bias the reviews.
Among these sources, Capterra, G2 Crowd and Software Advice are excellent software comparison sites.
2. Market research
Market studies are an important source of data for companies seeking to compare the performance of the various SaaS products available.
Industry analysts or research firms usually create these reports by collecting data from different companies in the market. The information is detailed and covers many topics, such as:
- Market trends (which SaaS types are most widely used?)
- Market share and growth forecasts (who are the main suppliers?)
- Strengths and weaknesses of different software suppliers
- Product evaluations
- Performance of market players.
Gartner and its annual report on enterprise software is an example of a valuable source of data for IT professionals.
3. Surveys and polls
Surveys and polls, sometimes included in the sources mentioned above, are a quick way to obtain valuable information on end-user usage and satisfaction with various software products.
This kind of information helps you understand a product’s strengths and weaknesses, and shows where it could be improved.
So, while users may point out certain shortcomings, if these relate to features you don’t need, you could still adopt the tool.
Surveys and polls can be conducted by research companies or directly by the software publishers themselves. G2 Crowd’s customer satisfaction reports, for example, offer an unbiased assessment of different products based on user comments and opinions.
Surveys and polls are useful because they use real customer feedback and reliable data. When many people take part, the results are even more trustworthy.
Even product designers can use these surveys to learn what customers want and adjust their products to meet those needs.
How to choose the right pricing benchmarks for your SaaS business
No single set of SaaS benchmarks works for every business. The best metrics depend on your company’s stage, goals, market, business model, and customers.
Before you decide what to measure, think about these factors:
Factor | What to consider |
|---|---|
External vs. internal data | Whether to compare performance with the market or your own historical results |
Business priorities | Growth, retention, profitability, customer satisfaction, or another key objective |
Business sector | Industry-specific customer behaviour and market expectations |
Business model | Subscription, freemium, advertising, or another revenue model |
Growth strategy | Whether growth is primarily product-led or sales-led |
Product type | How often and for how long customers are expected to use the product |
Customer profile | Differences in buying journeys, sales cycles, and conversion behaviour |
For early-stage startups with limited historical data, external benchmarks are often the best starting point.
However, established SaaS companies can also use month-over-month and year-over-year comparisons to track progress.
Meanwhile, your business priorities should determine what you benchmark.
Growth-focused startups may prioritize acquisition and adoption, while mature companies may focus on retention, usage, and profitability.
Your industry and business model also affect which benchmarks matter most. Customer behavior is different in each market, and advertising, freemium, and subscription businesses all use different ways to measure success.
Also, think about your customers. B2B SaaS typically involves more decision-makers and longer sales cycles, whereas consumer purchases often happen more quickly. This makes direct comparisons tricky.
Don’t compare things that aren’t alike. The best benchmarks match your market, business model, growth stage, and goals.
How to interpret the data collected during a SaaS pricing benchmark
Once you’ve started your SaaS benchmark and gathered lots of information, the next step is to sort and understand the data so you can make a plan.
To fully understand your results and get a clear view of the market, you need to consider several factors. Here are three key points to keep in mind.
1. Understand comparison criteria
To make sense of your benchmarking data, it’s important to know which factors were considered in the reviews and comparisons.
The criteria used vary according to the type of software or service you are comparing. They may include:
- performance criteria such as speed, capacity, reliability or data security
- functional criteria, such as the availability of certain functions or compatibility with other systems and tools
- total cost of ownership criteria, which include the direct and indirect costs associated with using SaaS, such as subscription fees, training and technical support costs, etc.
2. Consider the context of use
How well a SaaS works for your business depends on factors like your company size, goals, what your users need, and the features you require.
For example, a SaaS that is well suited to a small company may not be as effective for a large enterprise requiring hundreds of user accounts.
Similarly, a company working in the healthcare sector will have higher compliance and data security requirements than one operating in the retail sector.
Performance also depends on your working environment, such as your IT systems and the teams who install and maintain the software.
Considering these factors is essential for understanding your benchmarking results and knowing how SaaS performs in your area.
3. Use recent data
The newer your benchmark data, the more accurate your analysis will be. Benchmark data can become outdated quickly because the SaaS market changes all the time.
New products come out often, existing software changes, and user needs shift. That’s why it’s important to check sources that are updated regularly, such as:
- publications in specialized journals
- research reports
- recent surveys
Stay up to date with market trends by watching for new technology, company mergers, and new competitors.
Simplify your SaaS management with Najar
Benchmarking helps you pick the right software. Najar handles everything else.
Our SaaS Procurement solution replaces scattered spreadsheets and one-off comparisons with one easy-to-use platform. You can manage purchasing, contracts, renewals, and spending all in one place.
You don’t have to run a new benchmark every time a renewal is due. Instead, you always know what you’re paying for, what you’re using, and where you might be overspending.
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