SaaS offerings have been on the rise for a few years now. The Software-as-a-Service is a form offering from companies that provides many individuals, small businesses, establishments, and big institutions hundreds of software over the web. Keeping a separate running IT department can be costly even to more prominent companies. While companies run and maintain the software and rent out the SaaS to many clients, the clients don’t need to worry about software infrastructure.
The SaaS industry is worth hundreds of billions of dollars, and it keeps growing every year. Especially in the global crisis and Coronavirus, the dependence on established structures that SaaS development companies provide is more relevant than ever. The rise of SaaS also translated into the emergence of certain sub-industries and businesses that focus solely on SaaS-related concerns. One such thing is a SaaS development company.
Many SaaS development companies provide solutions to aid SaaS giants. With an industry valuation of at least 180B USD, there are many entries to people who want to succeed in the competitive industry. With the correct principles and philosophy, it’s possible to be the next SaaS giant that provides some of the most relevant Software-as-a-Service offerings to the general public. Embody these principles to ensure that you can stay afloat in the SaaS industry:
Focus on the Niche Market
There is no such thing as a one-size-fits-all. Suppose you’re looking to develop the next best software to offer as a service product. In that case, it’s best to focus on one tiny segment of the market and exploit every opportunity to dominate the segment. The truth is that no one product can please and satisfy all businesses and institutions globally. The more realistic option will be to focus on the software feature and find the right customer who will become dependent on the software.
An example is a CRM system for big companies. Many businesses now are shifting towards getting a SaaS to handle customer relationship management systems instead of having in-house teams for CRM tasks. Microsoft Dynamics 365 maintains a small slice of the pie, yet a significant number turns a profit. The small number of Microsoft Dynamics 365 is a steady, consistent source of revenue from a niche market that finds value in this SaaS. SaaS developing companies should aim to keep a good product for the niche market.
Since the niche market narrows down the number of people who become loyal to the product, the next thing a company needs to do is provide continuous improvements. The changes should
be consistent to give a smoother operation of the SaaS but not big enough to alter the original purpose of the SaaS completely.
One of the most common mistakes of smaller companies is accommodating every request to expand market needs. It’s best to start with what you have to ensure that the build-up is flat. Improvements don’t need to be great additions but can simply be a narrow scoping of the software’s best features. The critical trick is ensuring that you work and listen to the existing niche market that regularly uses the SaaS.
Excellence in Customer Service
The SaaS industry thrives on customer retention. Customer acquisition may work for other forms of products, but the focus is on the existing few who give the big bucks to the company with niche markets. SaaS companies should have expert in-house customer service teams who know the product and the clients the company provides the SaaS offerings to.
One example is Mailchimp. Mailchimp provides step-by-step and active support even to the new clientele that can become potential long-term customers. Mailchimp already sends a tutorial to new clients regarding how to use the system and ensures that each step of the way, people know how to use Mailchimp.
With the rise of SaaS companies, many developers may see the opportunity to start software that can turn valuable one day. If you want to develop the next CRM system or provide a managing system for companies, remember this:
✔︎ Focus on the smaller few numbers and aim for high retention instead of high acquisition customer volume
✔︎ Constantly sharpen and patch up the SaaS to ensure impeccable product to your already niche market
✔︎ Clients and users appreciate excellent customer service, which brings out a premium service that scopes beyond the software