SaaS success in in Q3 2022 | Bunch Consulting
The SaaS industry proves to be more and more profitable and resistant to the unexpected challenges of the past two years. Our research on the topic has shed some light on the benefits of creating your own SaaS product.
The universe of technology is constantly evolving, especially when it comes to app development. Before you go ahead with preparing your toolkit for the next project, stop by and let us share our experience with you.
Building a SaaS
Who doesn’t want to have an additional source of income? Developing a SaaS (Software as a Service) is seen as one of the ways of ensuring a steady income and business growth, even by non-tech incumbents. Let's see what you need to build a successful SaaS product.
Innovate through rapid test-and-learn cycles
The crucial point is to include the software engineers, designers, and data scientists in the ideation process from the beginning. It allows faster learn-and-adapt cycles and reactions to the first feedback from customers.
Capitalize on existing digital and data assets
Even if your company is a non-tech firm, you own valuable digital assets. Make use of them by identifying what information is not available on the market - whether it’s specific product purchase habits or monitoring the food delivery paths.
Plan for scale from day one
That’s nothing new under the sun but needs to be repeated also in the context of developing SaaS products. What you need to scale:
A dynamic and detailed road map with KPIs to indicate future development and innovation.
Flexible technology architecture that gives you the flexibility, and the possibility of growing and evolving (read more in our series about choosing the right tech stack here).
Orient pricing and selling around product usage
Thanks to integrating tracking in SaaS products, you receive valuable insights about their features, based on how they are used. This feedback can be directly translated into different pricing strategies.
If a customer values a specific feature, he is more likely to spend more on a product that offers it. Answering an existing need opens the door for many pricing strategies like subscription pricing, cost per use, cost by volume of usage, cost by time of day, etc.
Target talent by going deeper and wider
The accelerating demand for a wide range of IT specialists makes it more and more difficult to find the right people for a project. You can attract talented professionals by organizing hackathons but… who’s got time for that? At this point, we’d like to tell you - we got the team for you!
SaaS data monetization
What are the ways to grow your business? The first thing that comes to mind is the acquisition of new clients. But definitely, it isn’t the only one. What about retention and, more importantly, monetization of data you already have? Today, we’d like to concentrate on the last option.
Owners of SaaS companies have client data available at their fingertips. A fact that needs to be underlined – it’s not about the data itself or about what can be done with it (many businesses often stop at this point) but about what can be done around it. It means selling back to your clients processed data and facts about their businesses.
But we have our reporting system, we get updates on sales numbers every week.
Then, the right question to ask is – how do you use the data? Internally, treating it as a valuable source of information about your customers’ habits – it’s good, but not enough.?
This is where creating APIs comes to support your business.
The purpose of creating APIs is to retrieve information from multiple sources, to store and process it in one place.?
Naming only a few advantages of API:
Shopify is one of the examples to show the benefits of a well-thought API. They pull data from Amazon and Etsy thanks to building an API from third-party software. For a fee, customers can access their own sales information, stored in one place, and not pull reports from multiple marketplaces. Convenience and novelty are the undeniable competitive advantages of this solution.
7 must-know SaaS statistics
Looking at numbers makes you dizzy but on the other hand, you want to be up to date with industry news? Don’t worry, we’ve got you covered with the latest SaaS statistics!
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Do you have any guesses what the total spend on SaaS in 2021 was?
$152 billion.
Right, what’s even better – the forecast for the global SaaS market spend in 2022 is $240.61 billion in value.
A whopping 99% of businesses use at least one SaaS company.
It makes sense, especially without this 1%, because 100% is rarely seen in statistics. Think of a company that doesn’t use Salesforce, Microsoft, Zoom, or a similar product - it’s difficult to imagine, isn’t it?
SaaS top industries
Information technology and services, analytics, and financial services are the top 3 industries for SaaS companies. They’re closely followed by the communication, project management, and security industry.
Search volume
Search volume for “SaaS” is up 100% in the last 5 years. You can check the search volume for “SaaS” – it’s incredible!
Annual, steady income
Companies are switching to annual instead of monthly SaaS subscriptions.?
Think of how it influences your company budget planning – the SaaS product subscription model can contribute to the financial stability of your enterprise.
More profit thanks to outstanding customer experience
85% of customers claim that they are willing to pay more for a SaaS product if there is a high-quality customer experience.
Why do CIOs choose SaaS
The top motivators for using SaaS solutions named by 70% of Chief Information Officers are agility and scalability. Those translate directly into savings and this can be achieved with a well-designed SaaS product.
SaaS Customer Service
As we’ve mentioned in our last post, 85% of customers claim they would pay more for a SaaS product if there is a high-quality customer experience. It can be a business differentiator, especially in these times, when the competition in the SaaS industry is fierce. We’ve compiled a list of the 5 most important factors to make your product as customer-friendly as possible.
Check your definition of “good customer experience”.?
Your customers expect to be able to carry out their activities anywhere and anytime, on their chosen device. The expectations go beyond that, of course. The two main factors to maintain customer loyalty are interactions that help your clients gain the most out of your software and resolving their issues with minimal effort on their part.?
Make the most of the pre-sale and purchase phase
Use the time to educate your customers about the features of your product and teach them tips and tricks to maximize the efficiency of using it.
Onboarding – keep it simple and personalized
It’s a key point in the transition from a buyer’s journey to a customer's journey. Four main things you need to keep an eye on here are:
Continue educating your customers
It begins in the pre-sale phase and should be continued later on. Provide them with a guide or tips inside the software – as engaging, immersive, and fun as possible. The ultimate goal here is to create your dream user who loves and understands your product and boost your ROI.
Customer retention - always on your mind
First, you have to own a growing customer base. Loyal customers will help you cut acquisition costs, which can be up to 5 times higher than retention costs.
How to join the booming SaaS industry?
We’re enthusiastic about helping others succeed! Just drop us a line at [email protected] and we’ll get back to you with an estimated project timeline.