Successful examples of SaaS include Netflix, Spotify, Grammarly, and more. However, to design successful SaaS apps, you must first understand why users would pay for your subscription and what features they want from a SaaS service.
SaaS or Software-As-A-Service is all the rage right now. The key reason for this business model's success is that it allows consumers to experience the benefits of a full-fledged software product without having to pay a large upfront fee.
So, if you want to learn about the key aspects of a successful SaaS application, and how to ultimately launch a successful one, you’ve come to the right place.
What Is SaaS?
Software as a Service (SaaS) is a software licensing and delivery model through which a supplier provides software to customers that are centrally hosted on a third-party server.
It's a cloud-based program that you may use from any device, at any time to make the program accessible to users online.
The SaaS market has grown in popularity as a result of the ease it provides to users. By 2022, the SaaS sector is predicted to reach a market value of $220 billion.
Why You Should Build A SaaS Product
Users do not have to create software or integrate services themselves while using SaaS. Instead, customers can purchase a software license for a set amount of time.
In terms of investment and risk avoidance, this approach makes the SaaS service more realistic.
Other benefits of using a SaaS service rather than developing a product include the following:
Easy To Deploy
You won't have to wait weeks or months for development and deployment, unlike traditional software.
For accessing SaaS apps, you'll either need a web browser and a decent internet connection, or you may just download the program to your PC or mobile device. As a result, the software may be deployed quickly and easily.
Users can subscribe to SaaS services, which boosts their flexibility and scalability. Users can modify their subscriptions as they see fit at any time.
If the number of employees in a company grows, for example, the owner may quickly expand the subscription plan to gain greater service access.
You won't have to hire a development crew to keep your software up to date. The software and upgrades for the hosted apps are handled by the SaaS service provider.
Because the cost of new updates is not borne by a single individual or company, it remains lower than conventional software. Users may easily purchase an upgrade package or pay for particular upgrades they require.
The cloud is where the SaaS apps are deployed and configured. Users get rapid access to SaaS tools that are based on cloud services. To use SaaS services, all that is needed is the user's name and email address.
Users need only select the sort of service they want, and the app will be ready to use in a matter of hours, if not seconds. As a consequence, setup and installation time are minimized, as well as deployment difficulties.
Reduced Development & Hosting Costs
You may simply establish or buy a server for your service using platforms like Google Cloud Platform (GCP). As a result, hosting costs are reduced, and more people can start new SaaS businesses.
The product can be released to the market as a Minimal Viable Product (MVP). This method aids you in making important functionalities of your software available to market customers. You may simply test your goods in the market using this simple technique.
6 Features Of A Successful SaaS Product
1. Precise & Relevant Value Proposition
To begin, your app, like any other app, but particularly B2B SaaS apps should be a solution with a defined value proposition or business model.
As a result, it should tackle an issue that is deeply entwined with your clients' infrastructure and their immediate ROI.
2. Needs To Be Available & Portable
The entire goal of SaaS is to be able to access whatever it is that one requires from any internet-connected location. As a result, portability and availability are crucial.
The term "availability" refers to the goal of maximizing uptime and reliability. It's possible with a proactive engineering team that conducts thorough deployment testing and performance monitoring, catching flaws before users do.
You may also do it via automatic system redundancy, which ensures that things remain functioning even if something goes wrong.
Furthermore, portability entails compatibility with mobile devices, as well as any other system or device significant to your users.
In this wild epidemic world, for example, 65 percent of firms in the United States enable employees to link their personal devices to the company network.
The distinction between work and personal life has been formally blurred, and the phrase "BYOD" (bring your own device—the less popular sibling of "BYOB") has become ubiquitous. As a result, your SaaS software must keep up with the times.
3. Needs To Have Good Security & Regulation Compliance
When it comes to preserving a company's valuable business data, security is absolutely critical. A data breach on your end always leads to a data breach on their end, resulting in a slew of lawsuits all over the place.
To avoid all of that paperwork, it's critical to include security–including compliance with privacy regulations–into everything you create.
Furthermore, there may be several restrictions that apply to anything you do. These regulations may be state-specific, industry-specific, or country-specific.
As a result, best practices for SaaS security, such as safe product engineering and delivery, GRC inspections & audits, and frequent security analysis, are critical.
4. Needs To Have Multithreading
Multithreading—a style of program execution that "allows for several threads to be formed within a process, running independently yet concurrently sharing process resources"—should be supported by your successful SaaS software.
Multithreading is what allows thousands of users to operate in the same application at the same time, which is very important if your product is B2B.
5. A Great Development Team
A great development team should have three characteristics - it should be experienced, in it for the long haul, and transparent and open.
As a result, you must hire a developer with a resource-maximizing attitude rather than a cost-cutting mindset, particularly in the beginning stages.
You want to put money into a great, scalable, and long-lasting MVP (Minimum Viable Product) that will gather traction and help fund and guide future development.
Choosing a developer with a cost-cutting mindset, for instance - the one who offers you the cheapest price - means that you can end up with someone untrained or who would design a quick fix rather than a quality, long-lasting, and scalable solution.
The long-term aspect is also critical—they should operate transparently, share your vision, and be involved in your app's long-term success.
6. A Customer Success Program
KPIs may be measured with the use of a customer success program. As a consequence, you'll be able to track feature usage and assist your consumers in getting the most out of your app.
However, what does a well-coordinated Customer Success program entail?
Providing project management assistance for deployments and guiding your clients through onboarding, implementation, and/or migration.
Finally, they will use precise metrics to measure their progress and app usage. A strong customer service program will boost brand loyalty, minimize churn, and maybe contribute to organic growth.
7 Steps To Building A Successful SaaS Product
Step 1: Identify Target Audience
Before you start the SaaS application development process, you need to know who your product will be used by.
Without establishing the buyer persona, you're more likely to deliver a mediocre solution to a wide range of people rather than an amazing, targeted solution to the proper audience.
The most important factor in the success of your SaaS application development is market research. So, conduct an extensive study into your sector, identify your specialty, and develop a precise buyer profile.
Identify your target purchasers' age groupings, geographic areas, purchasing habits, and lifestyle habits.
Such insights will assist you in gaining a clear picture of what people desire now and in the future. This allows you to design your product with those demands and desires in view.
Step 2: Define A Budget
The design, development, and marketing of your SaaS product come with a slew of expenses. It will be tough to take your concept all the way to its final destination without proper consideration of the financial needs.
The total cost of launching a SaaS product is determined by the product's size, functionality, and marketing techniques.
Make sure you budget for any unforeseen delays or difficulties after considering routine expenditures such as server charges, monitoring software prices, development and maintenance costs.
Budgeting for each of these elements can help you deal with any unexpected events and keep the development process on track.
Step 3: Define The USP Of Your SaaS
You might already have a good understanding of why people would want to utilize your SaaS solution. You must, however, limit the needed functionality to a few key elements.
Consider your SaaS product as a solution rather than a product when determining the most important features.
Your buyer persona will assist you in determining the issues that your potential consumers are experiencing. After that, you must determine how your application would be the ideal answer for those problems.
If you have a clear idea of what problems your users are facing, then the solutions you provide will be accurate and effective.
Step 4: Outline An MVP
You should now have a good understanding of your target audience's demands and how your solution will meet those needs. So, now is the time to define your SaaS product's Minimum Viable Product (MVP).
An MVP is the simplest version of your product from which the first consumers may get value. An MVP's major function is to see if the market is ready for your SaaS solution.
It's critical to create an MVP before launching your full-fledged final product to verify your concept. If you launch your product right soon, you risk wasting a lot of money on something that no one wants to buy.
Step 5: Figure Out Technical Requirements
It's critical to write down all of the extra technical specifications for the SaaS product you intend to construct, in addition to the key features.
Programming languages, frameworks, and user interface components must all be carefully chosen in advance. Otherwise, you may need to update your code to accommodate new cases.
Before the development process begins, options for customization, security, and data privacy must be considered. Another crucial factor to consider when developing a SaaS application is the ability to integrate with third-party services.
Integrate your product with other apps that allow consumers to perform more with one software application to increase the value your product provides.
Intelligent integration with widely used outbound solutions can also help you boost your profits. Effective integration plans, on the other hand, must streamline the integration process and provide simplicity of use.
Step 6: Choose A Pricing Model
The most crucial component in boosting your market involvement is to equip your SaaS product with a well-reviewed pricing structure.
Develop price levels for your SaaS application based on your buyer persona so that it gives value to each group of consumers depending on their current requirements. You have a range of pricing models to select from.
Offering a free version with enhanced capabilities that can be obtained with premium subscriptions is the ideal strategy for most SaaS products. This will allow people to determine how useful the product is to them, and once they are satisfied with it, they will be more likely to purchase the premium version.
Fixed monthly or yearly plans after a free trial period are another typical price strategy for SaaS applications.
Again, it's simpler to acquire potential customers' trust by demonstrating what your product can accomplish during the trial time than it is to convince them to buy it before they've tried it.
Finally, you may structure your SaaS product on a one-time payment model, which allows people to buy your product once and enjoy it for the rest of their lives.
When deciding on a price strategy, keep in mind your target audience's buying habits as well as the kind of solutions your SaaS product provides.
Step 7: Hire The Best Possible Development Team
Now that you've settled on all of your requirements and finances, the actual job can begin.
It's an understatement to say that the development stage is both the most important and the most susceptible in the process of creating a successful SaaS product.
Choose the developers for your SaaS application like you would your business partners to guarantee you obtain the best SaaS development services.
Hire dedicated developers who are specialists in their respective technologies, depending on the technological stack involved in the development of your SaaS project.
If you don’t know where to start, consider PolyUno. PolyUno is one of the top-ranked web & app development companies and has an integrated approach fuelled by a dedicated team. Basically, everything you need from the perfect tech partner.
Without a doubt, SaaS apps will increase at a tremendous rate in the future years. As technology advances, entrepreneurs will collaborate with developers to produce breakthrough products leveraging these business models.
To combat the rising competition, you may improve your project's chances of success by selecting a business that offers full-service development as well as expertise and experience in planning, designing, creating, and managing SaaS apps and platforms that attract paying customers and investments.
If you're seeking a development partner to help you build a SaaS application, Book A Call with PolyUno today!