What is SaaS exactly?
SaaS (Software as a Service) is a business model that allows users to download software whenever they want it. The software is hosted in a cloud by the provider and can be accessed via the internet by the user.
SaaS applications offer subscription-based billing. These typically include monthly or annual fees. Access is granted to users using either a local client program or, more commonly, via a browser. So, users don’t need to download and run complicated software. It’s also not necessary for business users to have expensive hardware or IT staff to maintain it.
Cloud-based software means that updates and maintenance are done in the background without interruption to users’ work.
What are the SaaS applications?
SaaS offers a wide range of uses. SaaS allows you to do almost everything with software. For example, slack and Teams are well-known for their productivity, collaboration, and project management software. Zoom also offers video conferencing software.
Additionally, there are many other functional applications, such as customer relations management (CRM), human resource (HR), and marketing automation, including email marketing.
What trends are we able to expect?
Continued growth can be achieved through hybrid working
COVID-19’s pandemic accelerated SaaS adoption. SaaS software are easy to use for home workers. Businesses saw this and were convinced.
Remote working has led to a massive demand for products that facilitate collaboration and allow users to access previously centralized information and intelligence. Many companies have struggled to access their staff, especially if they have an on-premises accounting or finance system.
Cloud-based systems allow employees to work from home since they don’t require each user to install or maintain their software. It is instead delivered in a decentralized way and often requires little to no training or support.
Many companies realize the benefits of letting employees work from home and having less office space. However, when the pandemic comes to an end, more companies are set to move towards hybrid working as standard, so more SaaS software will be required to facilitate that – as seen with the massive uptake of Zoom.
Development of SaaS APIs (Application Programming Interfaces)
SaaS solutions now have more excellent business value, which has forced companies to integrate more closely with their systems. For example, a new customer signing up to an email mailing list might be automated, and the details automatically imported into your CRM. This will require access to the API of the software provider.
Zapier, a third-party provider of these types of connections, is not a reliable option. However, SaaS providers can benefit from your API. Innovation comes from companies that offer APIs to customers. This will allow them to provide a better service for integration.
Product-Led Growing is Our Focus
SaaS has seen increasing competition. Many new players are offering similar solutions or the same services. This makes a company’s dominance less secure. Zoom, for instance, was able quickly to surpass Skype in video conferencing during the pandemic.
To prevent customers from leaving and turning to their competitors and continuing to drive growth through acquisition, SaaS providers need to emphasize how their product meets their customers’ needs. A customer-centric approach is essential to future success. SaaS companies will need product-led growth to attract customers.
Software companies often use the product-led model of growth. It emphasizes end-users. All stages of development are based on this. Thus, the first acquisition is only one user for a company. If the product is excellent, this spreads to the rest, and then there’s a conversion throughout all of the company. Their long-term retention depends on the product meeting their needs.
Companies will be able to develop products that meet the needs of customers by focusing on them. It isn’t enough for a product to be attractive and functional. To grow, the software must address the customer’s problems. This will allow the product to be used by everyone and not be sold to anyone.