SaaS Agreement Checklist: Things to Watch Out for
Like any business, SaaS businesses also lock deals, sign agreements, and finalize contracts. However, things are somewhat complicated here. How?
SaaS products and services are intangible. It is difficult to define units and quantify SaaS products. And when units are set, the next challenge is to make customers understand the standard of units that you have set for your SaaS product. Resultantly, customers are sceptical if they are actually charged for only what they are using.
As a retailer, whenever you sign an agreement with the customer, there has to be a checklist that will help you finalize a contract or agreement that will benefit both parties. SubscriptionFlow experts are here with a SaaS agreement checklist that will help you lock in a profitable deal with your customers.
1. Billing Details
The first thing about which both retailer and the customer need to be clear is the billing. For the SaaS subscription business, the price that you offer customers depends on:
- The subscription plan that the customer wants
- Tax rules and regulations
- Currency rate
- Percentage cut by the payment gateway
- Add-ons if the customer has purchased any
- Customization (if you offer customized plans)
If you have any flat fee for initial onboarding charges, then make this clear to the customer in the beginning. Also, it is important to not have any hidden charges. Nothing disappoints customers more than the hidden charges that SaaS companies unveil at the eleventh hour. It harms long-term relations with the customer. Automated subscription management tools bring SaaS businesses to fair and accurate billing so that a bond of trust can be established with customers.
Also, if you offer customized subscription plans for your SaaS product, then billing is complicated. Here, you empower customers, but not all customers use this power fairly. The best solution to avoid any ambiguities is to make detailed bills. Mention your billing terms clearly.
Also Read: The Difference Between Subscription Billing and Invoicing Software
2. Customer Data Security
To understand the importance of customer data security, consider an eCommerce platform offering subscriptions for personal care products. One of the biggest challenges for these eCommerce platforms is to convince customers to share their account data to process payments. Customers do not want to share account details yet process the payment for the subscription plan.
To counter this problem, you need to:
- Allow your customers to do audits anytime for security evaluations
- Keenly draft your clauses regarding customer data security
- Clearly write the obligations of the retailer and the customer
- Tell your customers your way for data restoration and backup
- Offer your customers GDPR
3. Automated Tools for eSignatures
Now that we are discussing agreements and contracts in the digital world, it is important to keep your tech stack up to date. One of the perks that every SaaS business wants to enjoy is to cater to local as well as international customers. But how to sign deals with customers beyond borders?
You have done your part.
Let SubscriptionFlow take it from here!
subscription management software.
Nothing to worry about, because there are automated tools that not only allow you to get agreements and contracts signed but also you can use prebuilt SaaS agreement templates and track e-signatures. When these tools are integrated with the core subscription management software, complete business processing can be managed from the same SaaS platform.
For instance, SubscriptionFlow integrates with Adobe Sign, DocuSign, and HelloSign. Our integrated subscription management platform allows users to target customers from anywhere and sign contracts seamlessly as there are e-signature applications integrated with the core system.
Also Read: DocuSign Integration for Seamless Subscription Lifecycle Management
4. Clause Regarding IPR
It is the right of SaaS retailers to have Intellectual Property Rights (IPR). As a SaaS retailer, you have a copyright to the source code and your software. The provisions in the SaaS agreement must include that you own the SaaS product for which you offer subscriptions.
Today, other than real-world presence, people are equally active in the digital world. Just like in the real world, you have intellectual rights in the digital world and law enforcement bodies acknowledge these rights.
5. Assurance of Quality Services
As a SaaS retailer, it is an obligation to commit to offering quality services. Also, not all SaaS companies offer SaaS services and not all those companies that offer SaaS services offer SaaS products. However, if you offer both products and services, then make it clear in the SaaS agreement what services are you going to provide the customer with.
- Mention the average response time
- Compensation in case the retailer fails to offer committed services
- Mechanism to define the quality of services
In the SaaS subscription business world, there is twofold importance of customer trust because retailers hunt customers who need to come for the SaaS product or services recurrently. And there is no chance of these recurrent visits if you fail to deliver quality services and a trustable contract to your customers. SubscriptionFlow always locks fair deals with its clients.
If you are looking for a fair subscription management software that will implement the complete SaaS contract checklist mentioned here, then SubscriptionFlow is the one.
schedule a demo for SubscriptionFlow now!
