What are the best practices for subscription businesses?

Software Subscription Management Nuggets (“Best Practices”)
In collaboration with Artificial Intelligence

Evaluation and Selection
- Trial Periods: Take advantage of free trials to evaluate software before committing.
- Needs Assessment: Ensure the software aligns with your business needs and scalability requirements.
- User Reviews and Comparisons: Research customer feedback, industry reviews, and competitors to make an informed decision.

Cost Management
- Budgeting: Set a clear budget for software subscriptions and track expenses regularly.
- Time Saver: Research and leverage existing agreements from similar entities, state, or federal governments
- Avoid Feature Overload: Subscribe only to the features you need; consider tiered pricing options.
- Annual vs. Monthly Billing: Opt for annual plans when possible, as they often offer discounts over month-to-month billing. If comfortable, go for muti-annual agreements without cost-of-living adjustments

Subscription Management
- Centralized Management: Use a subscription management tool or spreadsheet to track renewal dates, costs, and usage.
- Set Renewal Reminders: Set reminders before the renewal date to assess ongoing need or cancel unused subscriptions.
- Negotiate Renewal Terms: Reach out to providers to negotiate lower rates or promotions at renewal time.

User Management
- Assign Account Owners: Designate individuals responsible for managing each software license.
License Optimization: Regularly review active users and remove inactive ones to optimize costs.
- Access Control: Ensure appropriate access levels for users to reduce risk and improve productivity.

Security and Compliance
- Vendor Security Assessments: Ensure vendors meet necessary security standards (e.g., data encryption, compliance certifications).
- Data Privacy Compliance: Ensure the software complies with relevant data protection regulations (GDPR, CCPA, etc.).

Monitoring and Reporting
- Usage Analytics: Regularly review usage reports to ensure that the software is delivering value.
- ROI Assessment: Periodically assess the return on investment (ROI) of each subscription.
- Consolidation: Evaluate whether multiple tools can be consolidated into a single platform to reduce costs.

I have seen two good documents from Garter on similar lines. Refer the below link.

https://www.gartner.com/en/documents/4013597

https://www.gartner.com/en/documents/5625891