What are the best practices for benchmarking software prices and discounts?

1 Understand your software requirements

Before you start comparing software prices and discounts, you need to have a clear understanding of your software requirements. What are the features, functions, and performance levels that you need from your software? How many users, devices, and locations will you need to cover? How long do you plan to use the software and what are your renewal options? By defining your software requirements, you can narrow down your choices and focus on the software that meets your needs and budget.

2 Research the market and competitors

One of the best ways to benchmark software prices and discounts is to research the market and competitors. What are the average prices and discounts for similar software products and services in your industry and region? What are the pricing models, terms, and conditions that different vendors offer? How do they compare to your current or prospective vendor? By researching the market and competitors, you can gain insights into the value proposition and differentiation of your software and negotiate better deals.

3 Leverage your data and analytics

Another best practice for benchmarking software prices and discounts is to leverage your data and analytics. How do you measure the return on investment (ROI) and total cost of ownership (TCO) of your software? How do you track the usage, performance, and satisfaction of your software? How do you identify the gaps, risks, and opportunities for improvement? By leveraging your data and analytics, you can evaluate the impact and value of your software and justify your spending and savings.

4 Seek expert advice and guidance

Sometimes, benchmarking software prices and discounts can be challenging and time-consuming, especially if you lack the resources, expertise, or access to reliable information. In that case, you may benefit from seeking expert advice and guidance from independent consultants, analysts, or peer groups. They can help you benchmark software prices and discounts based on their industry knowledge, best practices, and benchmarks. They can also help you negotiate better terms, conditions, and discounts with your vendor.

5 Review and update your benchmarks regularly

Finally, a best practice for benchmarking software prices and discounts is to review and update your benchmarks regularly. Software prices and discounts are not static, but change over time due to market conditions, demand and supply, innovation, and competition. Therefore, you need to monitor the changes and trends in the software market and adjust your benchmarks accordingly. You also need to review and update your benchmarks when your software requirements, expectations, or goals change.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?