B2B SaaS MVP Trilogy – Modelling Business
Ritwik Agrawal
Consultant | MS (AI for Business) | Artificial Intelligence and Consulting
This is the third and final part of the three-part series, in which we are exploring the B2B SaaS business which has had a bullish trend since 2021 (as per Google Trends Search Interest). The three Parts have been broken down chronologically:
The importance of business modeling before entering the SaaS market cannot be overstated, especially in a landscape where there are high chances of failure. 麦肯锡 's Research states that even if your SaaS company is growing at a CAGR of 20% it still has a 92% chance of ceasing to exist.[i]
A business model with a decoupled architecture with continuous A/B testing may help in securing higher growth rates, and a greater chance of survival.
Business Model Canvas
We will cover three essential components of the SaaS Business Model that have to be put in higher priority.
Key Partnerships and Resources
Strategic partnerships form the backbone of many successful SaaS startups, providing a platform for growth and expansion. Such alliances, commonly in the form of integrations, often involve larger companies collaborating with smaller startups, enhancing product features, user experiences, and market reach.
An example within the SaaS ecosystem is Expensify 's collaborations with Uber [ii] and Priceline [iii], leveraging these partnerships to offer seamless travel experiences to their users.
Another strategy could be entering the add-on ecosystem like that of Google Workspace [iv] and 微软 Appsource[v]
Customer Relationships and Channels
Building and maintaining strong customer relationships are critical, with platforms like Canva and Salesforce showcasing how SaaS solutions can cater to diverse customer needs while ensuring high engagement and satisfaction.
As per Gitnux Market Data , a survey found that 34% of executives surveyed said that customer satisfaction ratings were the most important factor in choosing a SaaS vendor.[vi]
As your customer base grows, so does the need for a robust support system. Investing in customer support technology and personnel ensures high customer satisfaction and loyalty, fostering a positive brand image. The case study of BYJU'S could be pivotal in understanding how this impacts the company valuations indirectly.
Products from Zendesk , Intercom , and Freshworks can help you streamline and scale your customer service.
Revenue Streams in SaaS Businesses
Diversifying revenue streams through subscription models, pay-per-use systems, and tiered service offerings allows SaaS businesses to cater to various customer segments effectively, ensuring a steady revenue flow.
A free-to-test trial plan and standardized service offerings could become the best lead magnets. Userpilot states that the average free trial conversion rate for opt-in trials is 18.20% while for opt-out it is 48.80%.[vii]
Pricing Strategy
OpenView has published a comprehensive article on Pricing Insights from 2,200 SaaS Companies[viii]
Reforge has also researched how 1,800 SaaS Companies are Pricing their Products[ix].
It’s crucial to align your pricing strategy with the perceived value of your service, ensuring that it reflects the benefits and solutions your product provides to your target market.
Your pricing strategy directly affects your market positioning, influencing customer perceptions and competitive advantage. It's essential to balance affordability with value, ensuring that your SaaS product remains attractive and competitive in a bustling market.
Pricing Models for SaaS Products
Subscription-based models reign supreme in the SaaS industry, offering the flexibility to scale services based on customer needs. However, pay-per-use and tiered pricing strategies are also prevalent, allowing businesses to adjust their offerings based on market demand.
泰雷兹 [x], Userpilot [xi], and Chargebee [xii] covered these in three very good articles that can be used as guides. You can find them below,
Broadly we have,
Go-To-Market Strategy
A well-defined go-to-market strategy is essential for ensuring the successful launch and adoption of your SaaS MVP. This involves
Utilizing a mix of inbound and outbound marketing tactics, alongside leveraging social proof and testimonials can significantly enhance your SaaS product's visibility and attractiveness.
I have covered more on this in my article Lead Generation and Customer Acquisition in 2024: Innovative Outsourcing, Warm Leads, and Outbound SDR
领英推荐
Setting clear, measurable metrics for user acquisition, retention, and engagement is crucial for gauging the success of your SaaS MVP and iterating on your approach based on performance data.
Dataflo covers 10 such metrics[xiii] that will help you get started, Understanding the 10 Most Impactful Go-To-Market Metrics for SaaS
Tools like Zoho Marketing Plus and Funnelytics Map are relevant to look at.
Conclusion
In modeling your SaaS business, focusing on strategic partnerships, unique value propositions, and effective pricing strategies are key to aligning your MVP with business objectives. As you prepare for launch, a comprehensive go-to-market strategy and scalable infrastructure will be instrumental.
Using tools that provide free tier could be beneficial for testing the waters, and then opting for outsourcing during a transition phase could help bridge the gap between stagnancy and growth.
We at Adiflow Consulting perform continuous value optimizations to ensure your SaaS business not just survives, but flourishes across the world.
Bibliography
8 Examples of SaaS Pricing Models to Drive Your Success [WWW Document], n.d. URL https://cpl.thalesgroup.com/software-monetization/saas-pricing-models-examples (accessed 3.27.24).
Appsource – Business Apps [WWW Document], n.d. . Appsource – Business Apps. URL https://appsource.microsoft.com/en-us/ (accessed 3.26.24).
Download Business Apps in Marketplace | Google Workspace [WWW Document], n.d. URL https://workspace.google.com/marketplace (accessed 3.26.24).
Expensify and Uber integration [WWW Document], n.d. . Expensify - Expense Management. URL https://use.expensify.com/all-integrations/uber (accessed 3.26.24).
Expensify Announces New Travel Integrations With Uber , Priceline , NexTravel And More | TechCrunch [WWW Document], n.d. URL https://techcrunch.com/2015/07/23/expensify-travel-integrations/ (accessed 3.26.24).
How 1,800 SaaS Companies are Pricing their Products — Reforge [WWW Document], n.d. URL https://www.reforge.com/blog/brief-how-saas-companies-price-their-product-growth (accessed 3.26.24).
Must-Know Saas Statistics [Recent Analysis] ? Gitnux Market Data [WWW Document], n.d. URL https://gitnux.org/saas-statistics/ (accessed 3.26.24).
Pricing Insights from 2,200 SaaS Companies, n.d. . OpenView . URL https://openviewpartners.com/blog/saas-pricing-insights/ (accessed 3.26.24).
SaaS Pricing Models Guide: Types, Examples and Top Metrics to Track [WWW Document], n.d. . Chargebee . URL https://www.chargebee.com/resources/guides/saas-pricing-models-guide/ (accessed 3.27.24).
Sustaining growth in technology companies | 麦肯锡 [WWW Document], n.d. URL https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/grow-fast-or-die-slow (accessed 3.26.24).
The Most Important Go-To-Market Metrics for Driving SaaS Results [WWW Document], n.d. URL https://www.dataflo.io/blog/go-to-market-metrics-that-matter-in-saas (accessed 3.27.24).
Timar, A., 2023. SaaS Average Conversion Rate From Free Trial - How to Improve Yours! Thoughts about Product Adoption, User Onboarding and Good UX | Userpilot Blog. URL https://userpilot.com/blog/saas-average-conversion-rate/ (accessed 3.26.24).
Timar, A., 2021. The In-Depth Guide to SaaS Pricing Models and Strategies [Examples Included]. Thoughts about Product Adoption, User Onboarding and Good UX | Userpilot Blog. URL https://userpilot.com/blog/saas-pricing-models/ (accessed 3.27.24).
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[i] (“Sustaining growth in technology companies | McKinsey,” n.d.)
[ii] (“Expensify and Uber integration,” n.d.)
[iii] (“Expensify Announces New Travel Integrations With Uber, Priceline, NexTravel And More | TechCrunch,” n.d.)
[iv] (“Download Business Apps in Marketplace | Google Workspace,” n.d.)
[v] (“Appsource – Business Apps,” n.d.)
[vi] (“Must-Know Saas Statistics [Recent Analysis] ? Gitnux,” n.d.)
[vii] (Timar, 2023)
[viii] (“Pricing Insights from 2,200 SaaS Companies,” n.d.)
[ix] (“How 1,800 SaaS Companies are Pricing their Products — Reforge,” n.d.)
[x] (“8 Examples of SaaS Pricing Models to Drive Your Success,” n.d.)
[xi] (Timar, 2021)
[xii] (“SaaS Pricing Models Guide,” n.d.)
[xiii] (“The Most Important Go-To-Market Metrics for Driving SaaS Results,” n.d.)
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7 个月BYJU'S IS FRAUD ... BYJU'S AAKASH IS FRAUD