# The 5-Step Guide to Buying Software for Your Business | Capterra > Learn how to buy SaaS software the right way. This guide covers the 5-step buying process that successful software adopters use to make decisions. Source: https://www.capterra.com/resources/software-buyers-guide --- # 2026 SaaS Buying guide: How to Purchase Software for Your Business Written by: Amita Jain Amita JainAuthor Senior Writer Experience I've been writing for Capterra since August 2021, with the goal of becoming a trusted voice in the finance technology market. I have... [See bio & all articles](https://www.capterra.com/resources/author/ajain/) and edited by: Parul Sharma Parul SharmaEditor Content Editor Experience I have been an editor at Capterra for over two years, contributing to curating and enhancing content for various niches, including ... [See bio & all articles](https://www.capterra.com/resources/author/parul-sharma/) Published January 22, 2026 27 min read Table of Contents - [What is SaaS software?](#what-is-saas-software) - [Five-step software buying process](#five-step-software-buying-process) - [Red Flags during SaaS buying process](#red-flags-during-saas-buying-process) - [FAQs](#faqs) ## What is SaaS software? Software-as-a-Service (SaaS) is software you access online, rather than install on your own devices. You use it through a web browser or mobile application and pay a subscription fee. The vendor takes care of hosting, maintenance, and updates—so you can focus on using the tool. ### What's the difference between SaaS vs. on-premise vs. hybrid software? Before SaaS became the norm, most business software was installed "on-premise,” i.e. you bought a license, installed it on your own servers, and managed everything yourself. Today, even large enterprises use a hybrid approach that combines elements of both. Here's how they compare:  #### SaaS vs. on-premise vs. hybrid software: Understanding deployment models **Feature** **SaaS** **On-premise** **Hybrid** **Deployment** Hosted in the cloud by the vendor Installed on your company’s servers and hardware Mix of on-premise and cloud components **Access** Via web browser or mobile app; requires internet Local network or VPN; full control over the environment Some features run locally; others are cloud-based **Pricing**  Subscription-based (monthly or annual) Large upfront license fee + ongoing maintenance Mixed. License plus subscription for cloud services **Maintenance** Vendor handles updates, security, and infrastructure remotely Your IT team manages updates, backups, and security Shared responsibility between vendor and your IT team **Scalability** Add users or features on demand Requires hardware upgrades and planning Depends on which components need to scale _Source: Capterra, 2026_ ## Five-step software buying process Follow these five steps, drawn from the [habits of successful software buyers](https://www.capterra.com/resources/software-buying-trends-2026/), to choose tools that fit your needs and budget. From defining needs and researching options to negotiating terms and planning rollout, these will help you make confident purchase decisions. **5-Step Software Buying Process** _Capterra buyer journey aligned with buyer exploration and selection_ **Step** **Action** **What to do** 1\. Define Outcomes & Requirements Start with a clear plan Set your budget, define must-have features, and identify the challenges that the new software is meant to solve. 2\. Explore Solutions with Confidence Seek expert and peer input Rely on quality information to build your initial list of software to consider. 3\. Narrow Your List & Be Decisive Shorten your final list & time frame Create a shortlist of 3 to 5 software vendors and evaluate them in under three months. 4\. Get the Best Deal Focus on the contract, not the pitch When negotiating, pay close attention to contract terms vs. the sales presentation. 5\. Plan for Success Map out your implementation Create a detailed plan that prioritizes integrations with existing systems and addresses data migration early on. Source: Capterra (2026) ### Step 1: Define outcome and requirements Before you look at a single product, get clear on what you're solving for. The right SaaS tool should fit your workflows, support your team, and integrate with your existing systems.  **Poor requirements gathering is the #1 cause of disappointment for software buyers.** 54% of satisfied software adopters set clear goals upfront, compared to just 44% of those who end up disappointed. _Source: Capterra 2026 Software Buying Trends survey Q: Which of the following steps does your organization formally perform during the software selection process (meaning there is a methodical and documented approach). Select all that apply. n: Successful software adopters (n=1,147), disappointed software buyers (n=1,368)_ #### 1\. Start with the business problem, not the software category The problem defines the requirements. The requirements define the shortlist. When you lead with a software category, you risk anchoring on features you've heard of rather than outcomes you actually need. Don't start with "we need CRM software." Start with "we're losing track of customer conversations and it's costing us deals." Don't start with "we need project management software." Start with "we're missing deadlines because no one knows who's responsible for what." #### 2\. Define your outcomes and success metrics Ask yourself, what does success look like if this purchase works? Be specific and measurable. **Weak outcomes:** - Be more efficient - Improve communication - Get better visibility **Strong outcomes:** - Reduce invoice processing time from 5 days to 2 days - Cut customer response time from 24 hours to 4 hours - Increase sales team productivity by 20% Strong outcomes give you a way to measure whether the software is working, and a basis for holding vendors accountable. You need to define what success looks like before you are ready to buy.  #### 3\. Map features to outcomes Connect your business goals to specific software requirements. This ensures the features you consider have a clear role in helping you achieve your outcomes, and helps you avoid distractions from flashy but irrelevant features. #### What to look for in SaaS software: Goals, requirements, and features **Goal area** **Business outcome** **Functional requirement** **Non-functional requirement** **What features to look for** **Security** Protect business and customer data Control who can access what SOC 2 certified, end-to-end encryption Role-based access, audit logs **Data portability** Avoid vendor lock-in Export all data easily Standard formats, documented process Bulk export, API access **Integrations** Work with existing tools Sync with current systems Real-time sync, minimal manual work Native integrations, API support **Scalability** Grow without switching tools Handle more users and data over time Predictable pricing, no performance issues Clear pricing tiers, usage limits _Source: Capterra, 2026_ **Understanding the terms:** - **Outcomes** mean the results you want to achieve. For example: Reduce customer churn by 20% or speed up invoice processing by 50%.  - **Functional requirements** mean what the software must do. For example: Track customer interactions or automate invoice reminders.  - **Non-functional requirements** mean how the software should work. For example: Easy to use, secure, integrates with accounting tools or mobile access.  - **Features** mean the specific capabilities that meet your requirements. For example: Contact history log, automated email sequences or dashboard builder.  #### 4\. Set your budget Setting a budget early keeps teams aligned and prevents costly mistakes. According to [Capterra's 2026 Software Buying Trends report](https://www.capterra.com/resources/software-buying-trends-2026/), 62% of successful buyers define their budget upfront.\* A quarter (25%) of disappointed buyers spent more than they intended, often to replace tools that didn’t meet expectations, while only 12% of successful software adopters faced similar budget overruns. **Understand how SaaS pricing works** SaaS pricing varies more than you might expect. Knowing the models helps you compare vendors accurately and anticipate costs as you grow.  #### SaaS pricing models: How they work and what to watch out for **Model** **How it works** **Watch out for** Per user Pay for each person who uses the software. Most common model. Costs add up fast as your team grows. Tiered Features bundled into levels (Basic, Pro, Enterprise). Higher tiers unlock more. Essential features sometimes locked behind expensive tiers. Flat rate One price for unlimited users or set capacity. May pay for capacity you don't use. Usage-based Costs scale with activity, such as transactions, storage, and API calls. Harder to predict; bills can spike unexpectedly. Freemium Free tier with limited features; pay to upgrade. Free tier is often too limited for real business use. _Source: Capterra, 2026_ **Factor in hidden costs** The subscription fee is rarely the full story. Before you set your budget, account for: - **Implementation and setup:** Some vendors charge for configuration, data migration, or onboarding assistance. - **Training:** Getting your team up to speed may cost extra, especially for complex tools. - **Integrations:** Connecting to other tools may require paid add-ons, third-party connectors, or custom development. - **Overages:** Exceeding storage limits, user counts, or API calls can trigger unexpected fees. - **Price increases at renewal:** Some vendors offer discounts for year one, then raise prices significantly. Ask about renewal terms upfront. **Remember, the goal isn't to find the cheapest option, it's to understand the true cost of ownership** so you can compare accurately and budget realistically. #### 5\. Involve the right people early Software purchases fail when the wrong people make the decisions, or the right people aren't consulted until it's too late. #### Who to involve when buying software **Role** **Why they matter** **Daily users** They'll live in the software daily. If it doesn't fit their workflows, they'll resist or abandon it. **Budget owner** They need to approve the spend, and understand the true cost, not just the subscription fee. **IT or technical lead** They'll flag integration issues, security requirements, and compatibility concerns you haven't thought of. **Executive sponsor** They provide commitment, remove roadblocks, and signal that this purchase is a priority. _Source: Capterra, 2026_ _For smaller teams, one person may wear multiple hats. The point isn't to create a committee, it's to make sure key perspectives are represented before you commit._ ### Step 2: Explore solutions with confidence With your goals defined, the next step is to find tools that can help you achieve them. SaaS software can vary widely in features, pricing, and integrations, even within the same category. The quality of your research determines the quality of your shortlist. #### Where to research SaaS software [Successful software adopters](https://www.capterra.com/resources/software-buying-trends-2026/) are more selective about where they get their information. Over half (51%) consult industry experts, and 45% use software review and comparison sites. [Disappointed buyers](https://www.capterra.com/resources/five-habits-successful-software-adopters-habit-1/) are likely to rely more on generative AI tools (41% vs. 30%), which may offer less relevant or reliable guidance.\* Here's how successful buyers approach research: **Source** **Best for** **Watch out for** **Software review sites** (Capterra, Software Advice, etc.) Real user feedback; filtering by company size and industry; comparing multiple products Outdated reviews; unverified platforms **Industry experts and consultants** Tailored recommendations; understanding your specific context May have vendor relationships **Peer recommendations** Honest feedback from businesses like yours Their needs may differ from yours **Vendor websites and demos** Understanding features and positioning Marketing language; best-case scenarios only **Generative AI tools** Quick overviews; initial exploration May be outdated, lack context, or hallucinate details **_If you're not sure where to begin,_** [**_Capterra Shortlist_**](https://insights.capterra.com/shortlist?utm_source=bm&utm_medium=email&utm_campaign=sched_decagno1&emailId=52918&contactId=17745789&campId=13781&utm_content=52918&utm_term=17745789) **_is a good starting point. It ranks top-rated products in each software category based on user reviews and popularity._**  * * * **_Expert tip:_** _The best approach is to use multiple sources. Start broad, then validate what you find against verified user reviews from businesses similar to yours._ * * * #### How to use software reviews effectively Reviews reveal how software performs in the real world, not just in demos. Here's how to get the most value as you analyze reviews:  - **Filter by company size and industry:** A review from an enterprise with 500 users won't tell you much if you're a 15-person team. Look for feedback from businesses like yours, similar size, use case and challenges. - **Focus on recent reviews:** SaaS software typically updates constantly. A glowing review from two years ago may describe a product that no longer exists. Prioritize reviews from the last 6-12 months. - **Balance ratings with written feedback:** A 4.5-star average tells you something, but not much. Read the actual comments. A detailed 3-star review explaining specific onboarding problems is often more valuable than a vague 5-star saying - "love it!" - **Watch out for outliers:** One person complaining about customer support could be an outlier. Ten people saying the same thing is a red flag. Look for recurring themes and patterns, both positive and negative. * * * **_Expert tip:_** _If multiple reviewers mention the same pain point, assess how much it matters for your use case. Ask the vendor directly how they've addressed it._ * * * #### Build your initial product list Your research should result in an initial list of 5-8 products worth a closer look. This isn't your final shortlist, it's the starting pool you'll narrow down in Step 3. **Your initial list should include products that:** - Address the core requirements you defined in step 1 - Fit within your budget range (accounting for total cost, not just subscription) - Have solid reviews from businesses similar to yours - Offer the integrations you need with your existing tools * * * **_Expert tip:_** _Shortlist_ **_5–8 options_** _now. Fewer than five limits comparison; more than eight is tough to evaluate. You’ll narrow to_ **_3–5_** _in the next step._ * * * ### Step 3: Narrow your list and be decisive You've done your research and built an initial list of options. Now it's time to shift from broad exploration to focused evaluation. This step separates successful buyers from those who end up disappointed. **3 vendors** on the shortlist. **3 months** to final decision. Successful software adopters narrow their shortlist to just three vendors and make a final decision within three months. Longer timelines often signal confusion, and correlate with higher regret. _Source: Capterra 2026 Software Buying Trends survey Q: After conducting research, how many software vendors or products typically comprise your shortlist? Q: How much time, in total, does your organization usually take to evaluate options and determine which software products fit your needs? n: Successful software adopters (n=1,147), disappointed software buyers (n=1,368)_ #### Narrow your shortlist to three vendors  Your initial list of 5-8 products needs to become a shortlist of three. This is where you apply stricter filters based on your Step 1 requirements. **To narrow your list:** - **Revisit your must-haves.** Does each product meet your non-negotiable requirements? If not, cut it. - **Check for deal-breakers.** Look for consistent negative feedback on issues that matter to you, say poor support, missing integrations, or reliability problems. - **Consider vendor stability.** For business-critical software, factor in how long the vendor has been around, their customer base, and any recent red flags (layoffs, acquisition rumors, stalled product development). - **Compare pricing realistically.** Eliminate options that are clearly outside your budget once you account for total cost of ownership, not just the subscription fee. _Don't cling to options out of familiarity or a sunk cost. If a product doesn't fit, cut it. A tighter shortlist leads to better evaluation._ #### Evaluate the vendor, not just the product With SaaS, you’re not just buying software but entering into a relationship with a software provider who will host your data, control your updates, and be your first call when something breaks. The product might be great, but if the vendor is unstable or difficult to leave, you're taking on risk. **Check support quality** When something breaks, you need to know help is available. Evaluate: - **Support channels:** Live chat, email, phone? Available during your hours? - **Response times:** Do they commit to SLAs? What's a typical resolution time? - **Onboarding:** Is setup assistance included, or does it cost extra? - **Self-service:** If there is solid documentation, tutorials, and a knowledge base? **Assess provider stability** SaaS vendors can get acquired, pivot, or shut down, and your business is affected when they do. Consider: - How long have they been in business? - Who are their investors? Are they profitable or burning cash? - What's their customer base like: growing, stable, or shrinking? - What happens to your data if they go out of business? **Avoid vendor lock-in** Lock-in happens when switching away from a vendor becomes so difficult or costly that you're effectively stuck. It's one of the most overlooked risks in SaaS buying. Watch for: - **Data portability:** Can you export all your data? In what formats? Is the process easy or deliberately painful? - **Proprietary formats:** Does the vendor store your data in standard formats or proprietary ones that don't transfer easily? - **Integration dependency:** If you've built workflows around this tool, how hard would it be to replicate them elsewhere? - **Contract terms:** Are there long-term commitments, auto-renewals, or penalties for leaving early. #### Prepare your RFP or evaluation criteria In a formal buying process, issuing request for proposal (RFP) to shortlisted vendors helps you receive responses that are structured and easy to compare. Even if you skip the formal RFP, documenting your evaluation criteria can keep you consistent. #### What to include in your RFP or evaluation criteria **Component** **What to include** Business goals What you're trying to achieve; your outcomes from Step 1 Must-have requirements Functional and non-functional requirements that are non-negotiable Nice-to-have requirements Features you'd value but can live without Integration needs What systems it must connect with and how Security requirements Certifications, compliance needs, data handling expectations Scalability requirements How you expect to grow and what the software must support Support expectations Response times, onboarding needs, training requirements Timeline When you need to make a decision and go live _Source: Capterra, 2026_ _Even if you don't send a formal RFP, writing these down clarifies your thinking before vendor conversations._ #### Leverage demos and free trials Demos and trials are your chance to see the product in action, not just hear about it. Use them intentionally. Over 60% of successful software adopters engage with three shortlisted vendors through demos or trials before making a final decision, compared to just 41% of disappointed buyers. #### Two types of demos to request **Demo type** **Who should attend** **What to focus on** User-focused demo Daily users, team leads Real workflows, ease of use, day-to-day experience Technical deep-dive IT, admin stakeholders Integrations, security, configuration, data handling _Source: Capterra, 2026_ **How to get the most from free trials:** - **Test with real workflows.** Don't just click around. Run actual tasks your team does daily. - **Involve actual users.** The project lead's opinion isn't enough. Get feedback from people who'll use it every day. - **Test integrations.** Confirm it connects with your existing tools the way you expect. - **Push the limits.** Try edge cases, not just the happy path. What happens when something goes wrong? - **Document everything.** Take notes on what works, what doesn't, and questions that come up. * * * **_Expert tip:_** _Schedule demos with all shortlisted vendors within the same 1-2 week period. It's easier to compare when the experiences are fresh._ * * * #### Use a scorecard for side-by-side comparison When you're comparing multiple products, it's easy for details to blur together. A vendor scorecard keeps your evaluation structured and objective. **Need a template?** Download Capterra's free [Software Comparison Scorecard](https://www.capterra.com/resources/software-comparison-scorecard/) to evaluate vendors consistently. **Tips for using a scorecard:** - **Weigh what matters most.** Not all criteria are equal. If security is critical for your business, weigh it higher than ease of use. - **Involve stakeholders.** Have different team members score based on their perspective, daily users, IT, finance. - **Score after demos, not before.** First impressions from websites aren't enough. Score based on what you've actually seen. #### Questions to ask every SaaS vendor Demos show you what vendors want you to see. These questions uncover what they'd rather not talk about.  #### 10 questions to ask every SaaS vendor **Question** **Why it matters** **What's your guaranteed uptime, and what happens if you miss it?** Reveals reliability, commitment and accountability. Vague answers = red flag. **Can we export all our data at any time? In what formats?** Protects you from vendor lock-in. Hesitation = your data may be trapped. **What security certifications do you have? Where is our data stored?** Essential for compliance and risk. "We take security seriously" isn't an answer. **Which integrations are native vs. requiring custom development?** Custom integrations add cost and delay. Native = faster and more reliable. **What's included in onboarding? What does additional training cost?** Implementation costs often surprise buyers. Get specifics in writing. **How does pricing change as we add users or usage?** Understand your growth cost. Some models spike unexpectedly at thresholds. **What happens to our data if we cancel?** Know your exit rights. Can you export everything? How long do they retain it? **What's your support response time for critical issues?** "24/7 support" may mean chatbot. Ask for SLA-backed response times. **Can we see your incident history or status page?** Transparent vendors share this openly. Evasion suggests something to hide. **Who owns the data we put into your system?** Should be unambiguous: you own your data. _Source: Capterra, 2026_ _Take notes during every vendor conversation. After three demos, details blur together. A scorecard with real-time notes helps you compare accurately._ Understanding SLAs and uptime guarantees Every SaaS vendor promises reliability. But the details matter and most buyers don't know how to read them. **What's an SLA?** A service level agreement (SLAs) defines the vendor's commitment to uptime, performance, and support response, and what happens if they miss it. **Know the "nines"** **Uptime guarantee** **Allowed downtime per year** **What it means** 99% 3.65 days Basic. Expect occasional outages. 99.9% 8.76 hours Standard for most SaaS. Acceptable for non-critical tools. 99.95% 4.38 hours Good. Suitable for important business tools. 99.99% 52.6 minutes Excellent. Expected for business-critical systems. _Source: Capterra, 2026_ **Questions to ask:** - Does your uptime guarantee include scheduled maintenance? - What compensation do we get if you miss the SLA? (Credits? Refunds?) - Where can we see your historical uptime and incident reports? ### Step 4: Get the best deal You've evaluated your options and built a shortlist. Now it's time to secure a contract that protects your interests and delivers real value. _Successful buyers prioritize contract terms and negotiation when making their final choice.\* Buyers who are less satisfied often base decisions on sales presentations, support, or security, which may not indicate long-term value._ #### Who should be involved in the contract review? In Step 1, you identified stakeholders to help define requirements. Now you need the right people to review the contract before you sign, which may include some of the same people, plus others. #### Roles to involve before signing a SaaS contract **Role** **Why they matter** Business owner or decision-maker Final call on whether the deal meets business needs and budget. Finance Reviews pricing structure, payment terms, and total cost of ownership. IT Validates technical requirements, security, and integration commitments. Legal (if available) Reviews liability, termination, and data ownership clauses. _Source: Capterra, 2026_ For smaller SMBs without dedicated IT or legal resources, focus on business and finance review. For high-value purchases, consider having a trusted advisor review your contract terms before signing. #### Key contract terms every SaaS buyer should understand Contracts are dense, but certain terms matter more than others. In fact, **52%** of software buyers remove vendors from consideration due to unfavorable contract terms. Understanding these helps you negotiate smarter and avoid surprises. #### 11 SaaS contract terms explained **Term** **What it means** **Why it matters** Master Services Agreement (MSA) The foundational contract governing your overall relationship with the vendor Sets the legal framework for all purchases, renewals, and service levels. Service Level Agreement (SLA) Defines uptime guarantees, support response times, and service expectations Ensures reliability. Specifies compensation if they fail to deliver. Auto-renewal Contract automatically extends unless canceled in advance Know your cancellation window. Miss it and you're locked in. Usage limits Caps on users, storage, API calls, or features Exceeding limits can trigger unexpected overage fees. Termination clause How and when either party can exit the agreement Look for "termination for convenience" rights. Know the exit process. Data ownership Who owns the data you put into the system Should be unambiguous: you own your data. Data portability How your data can be exported and in what formats Protects your ability to leave. Poor portability = vendor lock-in. Price lock or renewal cap Limits on how much pricing can increase at renewal Protects you from budget surprises. Without it, prices can spike. Implementation and onboarding What setup, training, and migration support is included Prevents surprise fees after signing. Get specifics in writing. Feature availability by tier Which features are included vs. locked behind upgrades Ensures you're not paying for a plan that lacks essential functionality. User seat flexibility How licenses are assigned and whether they can be reassigned Important for teams with changing roles, seasonal staff, or contractors. _Source: Capterra, 2026_ * * * **_Expert tip:_** _Ask for a redlined version of the contract so you can track changes during negotiation. Don't assume standard terms are non-negotiable, they often aren't._ * * * #### What to compare when reviewing pricing Even vendors with similar features can have very different pricing structures. Don't just compare sticker prices, compare total cost and value. #### How to compare SaaS pricing across vendors **Factor** **What to look for** **Base price vs. add-ons** What's included? What costs extra? Are essential features in the base plan or paywalled? **Pricing model fit** Per-user, flat-rate, or usage-based. Which model works best for your team size and usage patterns? **Annual vs. monthly billing** Annual commitments often come with discounts. But monthly gives you flexibility to leave. **Implementation and training costs** Is onboarding included? What does additional training cost? **Renewal terms** What's the price at renewal? Is there a cap on increases? **Overage fees** What happens if you exceed user counts, storage, or usage limits? _Source: Capterra, 2026_ **Ask vendors to model pricing based on:** - Actual team size today - Expected growth over the contract term - Realistic usage patterns (storage, API calls, transactions) _Don't rely on generic tier pricing. Request a quote tailored to your specific situation, then compare providers._  #### Negotiation tips for SaaS contracts You have more leverage than you think, especially before you sign. **Successful software buyers are more likely to formally negotiate**—39% do, compared to just 32% of disappointed buyers.  To use your leverage,  - **Get everything in writing:** Verbal promises don't survive salesperson turnover. If a vendor commits to something, such as pricing, features, and support, make sure it's in the contract. - **Negotiate the price:** Most SaaS pricing isn't fixed. Vendors often have room to move, especially at the end of a quarter or fiscal year when they're trying to hit targets. Ask for a discount—the worst they can say is no. - **Lock in renewal terms now:** The best time to negotiate renewal pricing is before you sign the initial contract. Ask for a price lock or cap on annual increases. Once you're a customer, your leverage drops. - **Have a backup option:** Vendors are more motivated to negotiate when they know you have alternatives. Don't bluff, but don't hide the fact that you're evaluating competitors. - **Review the exit terms:** Before you commit, understand how to leave. What's the notice period? Can you terminate for convenience? What happens to your data? The best time to negotiate exit terms is before you need them. * * * **_Expert tip:_** _Negotiation isn't about being adversarial. Frame it as finding a deal that works for both sides. Vendors want long-term customers, a fair contract sets up that relationship._ * * * ### Step 5: Plan for success Signing the contract is just the beginning. A smooth implementation depends on clear ownership, realistic timelines, and coordination between your team and the vendor. Most software disappointments don't trace back to the product, they trace back to how it was rolled out. _Nearly_ [_9 in 10 disappointed buyers experienced implementation disruptions_](https://www.capterra.com/resources/software-buying-trends-2026/)_, most often due to integration issues (40%), data migration errors (38%), or project delays (38%).\*_ ### Build your SaaS rollout plan Before you touch the software, get clear on who's doing what, when, and how. A rollout plan doesn't need to be complicated, but it does need to exist. #### Onboarding: Set expectations on both sides A successful onboarding starts with clear ownership. You need someone internally who's coordinating timelines, gathering feedback, and keeping things on track. And you may need someone at the vendor who's accountable for your success.  **Confirm before you start:** - **Who's your point of contact at the vendor?** Get a named person, not just a support email. Know who to escalate to if things go wrong. - **Who's leading implementation on your side?** This person coordinates decisions, timelines, and communication across your team. - **What's the realistic timeline?** Vendor estimates are often optimistic. Ask what causes delays for companies like yours, and build in a buffer. * * * **_Expert tip:_** _Ask the vendor to walk you through what a "typical" onboarding looks like for a company your size._  * * * #### Integration and data migration This is where implementations most often break down. Rushing to "get everything connected" without a plan leads to messy data, broken workflows, and delays. _Just 30% of disappointed buyers checked system compatibility before implementation. In contrast, 43% of successful adopters did.\*_ **Before you migrate anything:** - **Identify what data actually needs to move.** Not everything from your old system belongs in the new one. Prioritize what you'll actively use. Leave the rest behind or archive separately. - **Clean your data first.** Migrating messy, duplicate, or outdated records just creates problems in your new system. Garbage in, garbage out. - **Map your integrations.** Which connections are critical for day one? Which can wait? Trying to build everything at once stretches timelines and increases risk. - **Clarify who's responsible.** Is the vendor handling migration, or is it on you? Are integrations native or custom-built? Custom work adds time and cost. * * * **_Expert tip:_** _Native integrations (built into the software) are typically faster and more reliable than custom-built connections. If custom work is required, factor that into your timeline and budget._ * * * ### Execute your rollout Once your plan is in place, it's time to configure, test, and launch. This phase is about validating that the software actually works for your team, not just in a demo environment. #### Testing: Validate before you go live Don't skip this. A quick pilot with real users catches problems that demos and documentation miss, such as clunky workflows, confusing permissions, or integrations that don't sync the way you expected. **How to test effectively:** - **Identify a pilot group.** Choose a small team that represents how the software will actually be used. Include at least one skeptic. They'll find the issues others miss. - **Test with real workflows, not sample data.** Run actual tasks your team does daily. Does the software support them, or fight against them? - **Define what "ready" looks like.** Before you test, agree on success criteria. What must work before you roll out to everyone? - **Log and prioritize issues.** Not every bug is a blocker. Categorize what you find critical, important, nice-to-fix, and resolve critical issues before launch. * * * **_Expert tip:_** _Don't just have the project lead test. Get actual end users involved. They'll surface friction you won't see from an admin view._ * * * #### Documentation and training: Set your team up to succeed Access isn't adoption. If your team doesn't know how to use the software, or why it matters,  they'll find workarounds or abandon it entirely. **What to put in place:** - **Create internal documentation.** Vendor created help docs are generic. Your team needs guidance specific to your workflows, what to do, where to find things, who to ask when stuck. - **Assign training ownership.** Someone needs to be responsible for getting users up to speed. Could be internal, could be vendor-provided, but it must be defined. - **Tailor training by role.** Daily users need different guidance than managers or admins. Don't give everyone the same firehose. - **Plan for questions after launch.** Users will hit issues. Have a support path, an internal champion, a dedicated Slack channel, a clear escalation route to the vendor. * * * **_Expert tip:_** _Schedule a check-in 2-4 weeks after launch. By then, users have real questions and real friction points, and you'll learn what training actually stuck._ * * * ### Define success at 30/60/90 days Implementation doesn't end at go-live. Set clear milestones so you know whether the software is delivering value, or heading toward regret. #### How to measure SaaS success at 30, 60, and 90 days **Timeframe** **What to evaluate** **30 days** Is the team using the software? Are there major blockers or complaints? Are critical integrations working? **60 days** Are core workflows running smoothly? Is adoption growing or stalling? Are users finding value or workarounds? **90 days** Are you seeing progress toward the business outcomes you defined in Step 1? Is the vendor delivering on their promises? _Source: Capterra, 2026_ **If you're not hitting milestones, diagnose early:** - Is it a training issue? Users may need more support. - Is it a configuration issue? The setup may not match your workflows. - Is it a product issue? The software may not be the right fit. The earlier you identify problems, the easier they are to fix. Waiting six months to admit something isn't working costs time, money, and credibility. * * * _The outcomes you defined in Step 1 are your benchmark. Revisit them at 90 days. If the software isn't helping you achieve them, it's time for a serious conversation, internally and with the vendor._ * * * ## Red Flags during SaaS buying process We've covered what successful software adopters do. Here's what disappointed buyers did differently and what it cost them.  If you recognize any of these patterns in your own process, it's not too late to course-correct. **1\. Skipping planning**  Jumping straight into demos and product comparisons without defining goals, requirements, or budget. It feels faster, but leads to purchases that don't fit. Only 48% of **disappointed buyers** defined their budget and must-haves upfront, compared to 62% of **successful software adopters**. **2\. Relying on the wrong sources** Taking software buying decisions solely based on vendor marketing, social media buzz, or AI-generated recommendations over verified reviews and expert input. These sources tell you what vendors want you to hear, not how the software actually performs. **Disappointed buyers** are 11 percentage points more likely to rely on generative AI tools for research than **successful software adopters** (41% vs. 30%). **3\. Dragging out the decision** Evaluating too many vendors for too long. Analysis paralysis increases confusion, delays value, and often leads to worse decisions, not better ones. **Successful software adopters** typically decide within three months. **Disappointed buyers** often take five months or longer. **4\. Ignoring total cost of ownership** Focusing only on the subscription price while overlooking implementation, training, integrations, and overages. The sticker price is rarely the full cost. A quarter of **disappointed buyers** spent over 15% more than intended, often because they didn't account for hidden costs upfront. **5\. Skipping the implementation plan** Assuming rollout will "just happen" without clear ownership, timelines, or testing. Implementation is where most purchases go wrong—not product selection. Only 29% of **disappointed buyers** created a formal implementation plan, compared to 54% of **successful adopters**. **6\. Not checking system compatibility** Assuming integrations will work without validating them before purchase. When systems don't connect as expected, you're stuck with manual workarounds, or a costly replacement. Just 30% of **disappointed buyers** checked system compatibility before implementation,  versus 43% of **successful adopters**. These are some specific behaviors that separate successful buyers from those who end up regretting their purchase. If you've followed the five-step process in this guide, you've already avoided most of them. **Want the full data? See Capterra's** [**2026 Software Buying Trends report**](https://www.capterra.com/resources/software-buying-trends-2026/)**.** ## FAQs What's the difference between SaaS and cloud software? All SaaS is cloud-based, but not all cloud software is SaaS. SaaS specifically refers to applications delivered via subscription over the internet. You access them through a browser, and the vendor handles hosting, maintenance, and updates. "Cloud software" is a broader term that includes SaaS, but also other cloud services like infrastructure (IaaS) and platforms (PaaS) that developers use to build applications.  What are the types of SaaS software? SaaS spans virtually every business function. Common categories include [CRM](https://www.capterra.com/customer-relationship-management-software/) for sales and customer management, [accounting and finance](https://www.capterra.com/accounting-software/), [human resources (HR)](https://www.capterra.com/human-resource-software/) and [payroll](https://www.capterra.com/payroll-software/) systems, [project management](https://www.capterra.com/project-management-software/) platforms, [marketing automation](https://www.capterra.com/marketing-automation-software/) and [customer support](https://www.capterra.com/customer-support-software/) software. There's also industry-specific SaaS for healthcare ([EMR systems](https://www.capterra.com/electronic-medical-records-software/)), retail ([POS](https://www.capterra.com/retail-pos-system-software/) and [inventory](https://www.capterra.com/inventory-management-software/)), education ([learning management](https://www.capterra.com/learning-management-system-software/)), and professional services ([time tracking](https://www.capterra.com/time-tracking-software/) and [billing](https://www.capterra.com/billing-and-invoicing-software/)). Who uses SaaS software? SaaS is used by businesses of all sizes, from solo founders to global enterprises. But it's become especially popular with small and midsize businesses who want powerful tools without the IT overhead. It's ideal for remote teams needing real-time collaboration, and for departments seeking their specialized tools. What happens to my data if I cancel my subscription? This varies by vendor, which is why you should clarify before signing. Most SaaS providers allow you to export your data and back it up locally at any time. When you cancel, you typically have a grace period (often 30-90 days) to retrieve your data before it's permanently deleted. Your contract should include a clause specifying data export rights, formats available, and how long you have to retrieve data after cancellation. Who owns the data I put into a SaaS application? You do, or at least, you should. Most reputable SaaS vendors explicitly state in their terms that customers retain ownership of their data. However, you should verify this in your contract or service level agreement (SLA). Is my data secure in a SaaS application? SaaS vendors typically invest more in security than most SMBs could afford to do themselves, including encryption, access controls, regular audits, and compliance certifications like SOC 2, ISO 27001, or GDPR. That said, security varies by vendor. Before buying, ask about their certifications, where data is stored, who can access it, and their incident response process. Also, remember the vendor secures the application, but you're responsible for how your team uses it (strong passwords, access permissions, etc.). Can I try SaaS software before committing? Most SaaS vendors offer free trials (typically 7-30 days) or freemium tiers that let you test the software before paying. Use trials intentionally: test with real workflows, involve actual users, and evaluate integrations. Some vendors offer demos instead of trials, if so, request both a general overview and a technical deep-dive. * * * Looking for SaaS Management software?Check out Capterra's list of the [best SaaS Management software](https://www.capterra.com/saas-management-software/) solutions. ### Was this article helpful? * * * ## About the Authors [### Amita Jain](https://www.capterra.com/resources/author/ajain/) Amita Jain is a senior writer for Capterra, covering finance technology with a focus on expense management and accounting solutions for small and midsize businesses. Her work has been featured in Careers360, among other publications. [### Parul Sharma](https://www.capterra.com/resources/author/parul-sharma/) Parul is an editor at Capterra with over half a decade of experience curating news, IT, software, finance, lifestyle, and health content. She excels at simplifying complex terms into engaging content for SMBs. Parul has worked as a feature writer for DNA India, India’s premier media portal. She was also the highest scorer in her English literature graduation and post-graduation class. ### RELATED READING - [Still Planning Production in Spreadsheets? Here’s When Manufacturers Move to MRP Software](https://www.capterra.com/resources/mrp-software-vs-spreadsheets/) - [Research Agenda](https://www.capterra.com/resources/research-agenda/) - [How to Choose ERP Software: 4 Steps Backed by Nearly 1,000 User Reviews](https://www.capterra.com/resources/erp-selection-guide/) - [Habit 3 of the 5 Habits of Successful Software Adopters: Shortlist Decisively to Maintain Decision-making Momentum](https://www.capterra.com/resources/five-habits-successful-software-adopters-habit-3/) - [The 5 Habits of Successful Software Adopters: Habit 2: Seek Expert and Peer Input](https://www.capterra.com/resources/five-habits-successful-software-adopters-habit-2/) - [3 Must-Do Things To Ace Your Software Implementation](https://www.capterra.com/resources/must-do-software-implementation-tips/) - [3 Tips for Reducing Cost and Risk When Negotiating a New Software Purchase](https://www.capterra.com/resources/software-negotiation-tips/) - [4 Signs It's Time to Move On and Check Out New Software](https://www.capterra.com/resources/how-to-evaluate-new-software/) - [6 Steps for a Successful Software Purchase](https://www.capterra.com/resources/software-contract-negotiation/) **\*Capterra’s 2026 Software Buying Trends** survey was conducted online in August 2025 among 3,385 respondents in Australia (n=281), Brazil (n=278), Canada (n=293), France (n=283), Germany (n=279), India (n=260), Italy (n=263), Mexico (n=288), Spain (n=273), the U.K. (n=299), and the U.S. (n=588), at businesses across multiple industries, ages (1 year in business or longer), and sizes (5 or more employees). Business sizes represented in the survey include: 1,676 small (5-249 full-time employees), 822 midsize (250-999), and 887 enterprise (1,000+). The goal of this study was to understand the timelines, organizational challenges, research behaviors, and adoption processes of business software buyers. Respondents were screened to ensure their involvement in business software purchasing decisions. Link to category guides or comparison pages.  Note: The applications mentioned in this article are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.