According to Zylo’s 2025 SAAS Management Index Report, SAAS utilization sits at a shocking low 47.3%. In other words, companies do not use more than half of the licenses they purchased. That equates to tens of thousands of dollars in wasted spend annually for an organization of even modest size and is leading contributor to customer churn.

Let’s be clear: customers don’t just want software. The rise of SAAS was driven by the promise of value—not just software functionality. Customers were tired of buying expensive on-premises software and being left to figure out how to implement, manage, and maximize its value on their own. SAAS emerged as a solution, offering quick access and a faster return on investment. After all, the last "S" in SAAS stands for service.

So why is utilization so low?

There’s no single reason that software utilization is low. The road to software adoption is riddled with challenges and it’s the job of the Customer Success Manager to identify and overcome these hurdles to keep renewals on track. Here are 8 of the most common challenges that derail product adoption and how to respond to them.

1. Misaligned use cases

Challenge: Use cases highlighted during sales don’t match the client’s needs during implementation.

Actions:

• Conduct a post-sale discovery session to reassess priorities.

• Work with the client to create a revised use-case document.

• Regularly revisit use cases during quarterly business reviews (QBRs) to ensure alignment with evolving goals.

2. Shifting stakeholders

Challenge: Key stakeholders who championed the software leave or change roles.

Actions:

• Maintain detailed documentation of original goals and project scope.

• Develop a “Stakeholder Transition Playbook” to onboard new stakeholders with clear context and expectations.

• Schedule regular check-ins to preempt potential shifts in priorities.

3. Internal priority shifts

Challenge: Business priorities change due to market conditions or leadership decisions.

Actions:

• Conduct bi-monthly check-ins to discuss the client’s evolving priorities.

• Emphasize how the software can support new business objectives.

• Propose targeted pilots or scaled-back implementations to maintain momentum.

4. Lack of internal ownership

Challenge: No designated champion to drive adoption.

Actions:

• Identify potential champions during onboarding.

• Provide champions with leadership kits, including guides, templates, and incentives.

• Recognize and celebrate their contributions in client meetings.

5. Resistance to change

Challenge: Employees perceive the software as extra work rather than a solution.

Actions:

• Offer role-specific success stories and practical use-case demonstrations.

• Implement phased rollouts, starting with high-impact teams.

• Host workshops focusing on the long-term benefits and addressing specific concerns.

6. Budget or resource constraints

Challenge: Limited resources hinder full implementation.

Actions:

• Propose a phased implementation focusing on quick wins.

• Collaborate on an ROI analysis to justify continued investment.

• Suggest cost-saving adjustments, like reducing unused licenses.

7. Poor onboarding

Challenge: Initial onboarding is rushed or unclear.

Actions:

• Develop a tailored onboarding plan based on the client’s workflow and goals.

• Use interactive training tools like webinars, videos, and guided walkthroughs.

• Provide a dedicated onboarding specialist to ensure comprehensive setup.

8. Inadequate reporting

Challenge: Clients struggle to see measurable results.

Actions:

• Customize reports to align with the client’s key performance indicators (KPIs).

• Set up automated dashboards for real-time insights.

• Review metrics with clients quarterly and adjust strategies as needed.

Closing the gap

The goal of SAAS is to deliver value, not just features. By addressing client-side challenges like changing stakeholders, misaligned priorities, and resistance to change, CSMs can ensure organizations fully utilize their software and see the benefits of their investment. With a proactive and collaborative approach, SAAS