CFOs are cutting down on SaaS spending as pandemic hits revenue

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 03, 2020, 12:27 PM UTC

Companies are “forensically scrutinising” their monthly expenditure to preserve maximum cash.

This piece states the COVID-19 pandemic is straining the ad tech industry massively as brands try to preserve as much cash as possible while trimming down discretionary outgoings. A purchasing and analytics platform Cledara found that spend of lead generation tools already declined by 8% between February and March this year.

Organisations are looking to cut down “nonessential” items like software fees. Combined with the shift of buyer persona from VP of engineering to CFO, the lack of understanding has put SaaS in the crosshairs.

The piece suggests that smaller niche companies could create a bundle of services with other organisations in adjacent spaces to offer bundle subscription. The author further says that SaaS companies that are ready to cut down prices now could be “rewarded with longer contracts later.”

Read the original article

[4 minute read]