Is “SaaS'ing” Cool?

It’s not old and it’s not new, but it’s definitely here to stay for a long time.

So what exactly is SaaS?

You might have come across various explanations and examples, trying to map them to your current or past projects. The term "Software as a Service" (SaaS) is often thrown around, and while many might say: “I’m working on this app, and we are giving it to users”… it’s essential to dig a little deeper.

At its core, SaaS refers to “something” (and i’ve put intentionally something) that is hosted (often in the cloud) and provided to customers in exchange for a recurring payment. Basically, you are offering something that users/customers consume on a subscription basis.

Now, let’s talk about that “something.” While it can certainly be software, it can also include other models like Product as a Service, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), etc. The common thread is that they all generate recurring revenue from customers.?

How can we make our “Something” cool and revenue generating?

Here are some key pillars to focus on:

1. Understanding Cost of the Software and the financial aspects of your offering is crucial. A subscription model can make it more accessible for users while ensuring steady revenue for you.
2. Thinking on how to increase customer retention by keeping your customers happy is vital. Engaging with them and providing ongoing value will help reduce churn and maintain a loyal user base.
3. Most SaaS businesses revenue, rely on monthly recurring revenue (MRR) as a key metric. Finding ways to increase this through upselling or offering premium features can significantly impact your bottom line.
4. Be prepared to make your service scalable and to be able to grow with your users. This means understanding usage patterns and ensuring that your infrastructure can handle increased demand without compromising performance.

How can we influence success?

You can adopt various approaches to enhance your offering. For instance, consider implementing pricing based on usage, which requires a good understanding of how your product is being used. You might also explore offering premium features for an additional cost, or creating different user tiers (normal, premium) to serve varying needs.?

These strategies are within our control. We can choose to differentiate ourselves and find innovative ways to succeed in the market. Ultimately, we are all end-customers, and it’s about shifting our mindset from “I want more for my money” to “How can we provide an exceptional experience to our customers, to attract and retain them?”

Utilising our own experiences with services can guide us in crafting a better customer experience. From improving design and usability to optimising workflows, every detail counts. The quality of features and overall service can truly make a difference.

Take a closer look at the synergy between what is needed and the various roles involved. Whether you are a Product Owner, Business Analyst, Designer, Developer or Tester, each of you plays a crucial part in the e2e contribution to the “something” and ultimately impacting the success of the business.

Conclusion

As a wise friend once told me, "We need to understand the company vision and contribute to the mission of achieving it." By aligning our efforts with this vision, we can not only enhance our products but also create lasting value for our customers.