How to Compare Software: Step-by-Step Guide to Help You Choose

Most small businesses can drastically improve their efficiency by using software. However, one survey found that businesses used an average of 342 SaaS apps (about 73 per department).

That’s a lot of decisions for a small business to make - and a lot of money invested.

When it comes to choosing software for your business, these decisions are crucial. And chances are you can operate far more efficiently with less software if you make the right choices.

So, what’s the best way to choose software? And how can you compare the options to make the right choice?

We’ll look at how to compare software products and ensure you're getting the best solutions for your business needs.

Step 1: Determine Your Needs and Goals

Before you jump into software reviews or Reddit threads, you first need to clarify what you want to achieve with the software. You can start by creating a list of your goals and requirements.

Suppose you own a real estate brokerage and want to purchase email marketing software. Maybe you’re using a free software version, a personal email client, or a website plugin to send basic communications. Now, you’re ready for something that will help you expand your capabilities.

Here’s what your list of goals might look like:

• Grow my email list from 500 to 5,000+
• Send an automated series to prospective clients who sign up on my website
• Send automated messaging to my clients on the anniversary of their purchase date and on major holidays

Here’s what a list of your requirements might look like:

Now, you can see things are starting to come together in terms of what to look for. Your goal is clear: manage a mailing list with at least 5,000 contacts. That means you’ll need software capable of handling this scale. Automation is another priority, along with the ability to segment email lists based on key factors.

Since you plan to manage many contacts with sales and organizational features, a CRM is also on your radar. SMS messaging might be appealing too, though it’s not a dealbreaker if the cost outweighs its value.

Speaking of cost, price is always a major factor. Let’s explore that next.

Step 2: Consider Your Budget

With most types of software, there's a huge range of options at a substantial range of price points. Some software providers offer a free version or free trial and some just appear to be generally inexpensive - until you discover that nearly every feature you need is priced separately.

But before you get into any of those details, it’s best to get a sense of what your bottom line is. What are you willing or able to pay? Before you even start looking into the cost of the software you’re considering, try to come up with a number on your own to evaluate the value it can bring to your business.

Here’s a quick breakdown of how to make this assessment:

1. Assess Monthly Cash Flow
   Even if you’re drawn to the bells and whistles of more expensive software, it may have to wait if the budget isn’t there. Consider what you and your business can actually afford as a monthly ongoing expense and let this guide your budget for your new software.

2. Consider ROI
   ROI, or “return on investment,” refers to the cost of your email software compared to how much you stand to make from it. In this case, if you're considering new email marketing software and email is already contributing substantially to your bottom line, you may be able to make the case for more features to boost that performance.

3. Account for Total Cost Ownership
   Consider how many people will need to access this software and whether there’s any flexibility there. Many software programs charge per user, so the final price tag could end up being a lot bigger than it initially appears to be if you don’t take this into account.

4. Don’t Forget Opportunity Cost
   Sometimes, more expensive software comes with more automation, AI-powered assistance, and a better workflow. While these features may mean paying extra, weigh them against the time they're likely to save you or your employees. You could also consider what you might lose in productivity or growth by not purchasing the tool.

You can use our Best Picks list to filter software based on pricing, and even find all the options that have free versions or free trials.

Each option on the list also pops down to show you all the key features to help you quickly add or discard software options. You can add any that may be a fit directly to our Software Comparison Tool for further analysis.

Step 3 - Think About Scalability

Software scalability refers to a system’s ability to handle increased workloads or expand its capacity. If you’re buying email marketing software, this might refer to the number of automations you can perform. If you’re looking for web host services, scalability might refer to the amount of web traffic your service can support.

Scalability is where a lot of people make mistakes when it comes to choosing software. There’s nothing wrong with starting out with a free version of a software if it meets your needs. But people often forget that changing software can come at a heavy price.

A report by G2 found that approximately 33% of businesses exceed their cloud budgets by 40%, often due to scalability challenges. This suggests a need for better scalability planning and monitoring - and we’d wager this issue extends beyond just cloud computing.

In other words, you aren’t just buying software to meet your needs right now. You're also buying software that will meet your needs at least within the next few years. Here’s how to assess scalability and how much you’re likely to need:

1. Analyze Your Growth Trajectory
   Think about where your business or project will be in 1-3 years. Will you need more users, advanced features, or higher storage capacity? Nail down exactly where growth is likely to happen, and what features that will require. This will help you plan ahead and forecast future costs for any software you’re considering. Use the free version to test workflows and see if the software has the potential to scale.

2. Evaluate Upgrade Paths
   Choose software that offers easy upgrade paths from a free or basic plan to premium options as your needs grow. You might also want to keep an eye out for providers that allow flexibility, such as month-to-month plans or prorated upgrades, rather than locked-in contracts.

3. Understand Limitations
   Know what’s restricted in the free version (e.g., user caps, limited storage, or missing features) and whether these limitations will soon hinder your progress.

4. Understand Export Options
   If you can’t easily export your data to other tools, you might face significant challenges when switching. Weigh this more heavily for tools you feel may not fit your needs for the long haul.

5. Look for Feature Bloat
   Some software locks critical features behind expensive premium plans, forcing a costly upgrade when your needs expand. Examine pricing plans carefully to understand the implications.

6. Check Vendor Stability
   Is the vendor likely to remain stable and continue innovating? Small, unstable providers might not be around to support your scaling needs. A strong user community or ecosystem often indicates that the software is widely adopted and adaptable.

Step 4: Compare Software Features

If you’ve done the legwork above, you probably have at least a couple of options in mind. Now it’s time for the fun part: comparing software features! Here’s how to do it.

Visit Softailed’s Software Comparison Tool

First, head over to our Software Comparison Tool. Let’s stick with the scenario we’ve been working with and assume you want to compare email marketing software. Choose the email marketing comparison page.

Select Your Top Providers to Build a Software Comparison Chart

Now, select the providers you’re considering to begin building your software comparison table. You can choose from more than 26 of the top email marketing software providers. (Trust us - they’re the best. We narrowed them down after researching more than 230 options.)

If you’ve had a look at our top picks for best email marketing software, you may have already narrowed down your options. Since your initial list of requirements prominently features automations, you might want to compare some of our top picks for best marketing automation software. So, let’s compare ActiveCampaign, HubSpot, Ortto, and Brevo.

To do this, just find the software provider in the list, select it, and click “Confirm.”

Compare Features

Once you’ve added all the software options you’d like to compare (you can add as many as you want), take a closer look at how they stack up.

In our initial list of goals, we set out to look for software that could manage 5,000+ contacts. One thing you might notice right away is that Brevo is much cheaper as your contact list grows. In this case, it means that pricing is based on how many total emails you are allowed to send. In other words, it has a different pricing model than the other options on your list.

This might work well for your needs. Or not. Our tool is designed to help you quickly and easily pick out differences like this to make an informed decision.

Now let’s have a look at some of the other things you were looking for. We can see that Brevo is the only option on your list that offers A/B testing and segmentation in its base plan (check and check!). It also offers the features on your nice-to-have list: SMS messaging, and a CRM.

Note that when the X’s on the chart are highlighted, you can hover over them for additional information. In this case, we can learn that some of the options on the list do have the features you’re looking for, but only in higher-level plans or as purchased add-ons. This typically means that the features you want will cost more from those providers.

Because automations were also a key feature we’re looking for, you can scroll down to that section and see how your picks stack up. Brevo performs well in this area, but you can also identify its weaker points to make a more informed decision.

You can also sort the list to see “just the differences.” This will remove any line items where all the selected providers have the same values.

Weigh the Pros and Cons

Now that you’ve compared your picks on a granular level, you can have a look at the pros and cons we’ve pulled together for each one. Based on your own needs, you may also have your own pros and cons.

Step 5: Test Your Software

Whenever possible, it’s a good idea to test any software you're considering purchasing. Most software providers offer free trials and free versions you can use to at least get a sense of what the software is like. Some of the things you should look for include:

• Whether you like the interface and find it easy to use
• Whether and how well the software fits into your current workflow
• Your team’s enthusiasm for its functionality and features (for any employees who will be using it)
• Whether and how well it integrates with other software you’re already using

You should also test your software against different budgeting scenarios. If this is one of your top picks, you’ll want to go back and consider scalability again. Will the pricing still suit you when you've met some of your near and mid-term goals for growth?

Let's say you’re buying email marketing software with the goal of marketing to 5,000 subscribers but currently only have 500. In this case, you’ll want to look at what that pricing looks like now, and at various points in the future as you move toward that goal. Different software can have vastly different pricing depending on what aspect of the software you aim to grow into, so keep this in mind as you shop for the right fit.

Software Selection Shortcut

As you can see, comparing software takes time and effort, even with the help of the right tools. If you still don’t know where to start, we have something even more exciting for you.

Our Finder Tool includes all our data sets about each software provider and can do the heavy lifting for you. It’s built to ask you a few key questions and quickly provide a recommendation tailored to your needs.

Here's how it works.

Step 1: Launch the Finder Tool

Select a software category that you’re interested in. Then, type in your name so we can address you by it. We don’t collect your data or email address.

Step 2: Answer Key Questions About Your Business

Next, our algorithm will assess your needs and business priorities to provide the best recommendation for you. Let’s give it a try as a real estate agent looking for email marketing software. In this case, you’ll be asked about:

• The type of business you run
• The size of your email contact list
• How you want to use the software
• How important price is to you
• Your business’s average revenue per customer

Once you’ve answered all the questions, you’ll get a personalized recommendation based on thousands of data points. We’ll also provide all the key information you’ll need to know about this software, including pricing, a features list, integrations, and pros and cons.

It’s as simple as that - try it for yourself.

Finding the Best Software for You

Whether you’re looking to compare email marketing software, CRMs, project management software, or other tools, we’ve got you covered. As a software advice platform, we provide the best tools, information, and insights people need to choose the best software for them.

We’ve tested and reviewed hundreds of software applications and developed tools and algorithms to help you find your perfect fit. After all, while the average business might use hundreds of apps, you don’t want to be average, right? Make the right choices from the start for a leaner, more efficient software stack - and a more successful business. Learn more about our process here, and be sure to give our tools a try!