Inserting a CD or installing a program for your PC are both painstaking tasks, and thankfully, we forget the last time we did it. We can do our work without a hassle because of the blessing of the SaaS business model. This plays a major role for every business to make the time-consuming monotonous operations quick and interesting to a great extent. SaaS is a cloud-based software that is in the mainstream. It enables the data to be accessed anytime, anywhere with a stable internet connection and web browser.
The Global Market Value of SaaS was $145.5 billion in 2021, and it is about to reach $171.9 billion by the end of 2022. SaaS app development solutions have become a jack of all trades, but app development is not a cakewalk for everyone in the highly competitive commercial domain. Hence, it is important to have a clear understanding of the fundamentals of SaaS development for implementing a comprehensive solution. Numerous business owners are using any SaaS products, such as
- Cloud Storage (Dropbox, Google Drive)
- Collaboration Software (Google Workspace, Slack, Office 356)
- Video Call Software (Zoom)
- Creative Software (Figma, Adobe CC, Canva)
Software as a service is a concrete business model that differs from traditional software licensing. This gives the developers freedom to sell their software delivery and maintenance without waiting for a lifetime license or releasing the latest version or feature upgrades. The businesses provide SaaS through a subscription model. For example, in the real estate industry, buying and selling have their own ways of action but sometimes renting outweighs buying. The owner takes all the responsibilities of the leaseholders. The entire thing results in affordability. For such a massive success, MarketsandMarkets’ global prediction 2020 says the cloud computing industry will develop at a 17.5% in CAGR and will reach $832 billion by 2025.
What Does SaaS Business Model Entail?
The SaaS business model allows you to access the cloud-based software by a web app or mobile app, or desktop in respect of a monthly or annual subscription. Software as a Service or SaaS is utilized by both individual consumers and organizations. The vital B2B SaaS companies are Slack, Mailchimp, and QuickBooks Online etc.
Different budgeting tools like Every Dollar and Adobe Creative Cloud are the right examples of consumer SaaS products.
The Different Stages of Progress of SaaS Companies
Pre Business Set Up
Pre-start-up business setup is only an idea, and you try to build up the structure from the ground up. You can still develop the product when you don’t have potential customers. Prior to doing so,
- Research and investigate the industry
- Elaborate on how your product outperforms its counterparts
- Set the strategies for the business model
- Obtain funds to strengthen your startup
Established business plan
When your startup plan is ready, you can start implementing your strategy. You can
- Manage the product and product leads
- Prepare proposals to clients
- Work to improve your product performance
- Stay informed
It is indispensable to map your success before you jump into the competition, as business startups have both their success and failure and recurrent risks as well.
Once you know that you have pitched your product successfully, then you must focus on making a sustainable system. You can do it by
- Improving customer acquisition and retention
- Keeping your customers engaged
- Making necessary adjustments
- Promoting your business
Benefits of the SaaS Business Model
Before jumping into the core of SaaS application development, it is necessary to understand the advantages of the SaaS business model for entrepreneurs.
SaaS creates a streamlined business platform for both clients and business owners. The resources are hosted in the cloud, so making any changes like adding new users at any place and any time is simple. It enables the processing of humongous data of the clients on a real-time basis and enables routine maintenance causing minimal or no downtime. As a result, it comes up with an incredible customer experience.
Adds up Revenue
Unlike traditional business techniques, a monthly or annual subscription is enough to run SaaS business models. Through these subscriptions, the firms can maintain a steady stream of revenue, encouraging expansion.
The customers are not obligated to buy any irrelevant products that are of no use. They are allowed to renew their subscription plans based on their requirements only. The invoices are created and delivered by an invoice-generating tool in PDF formats.
The Saas products can be updated or modified without a constraint. In respect of customer demands and expectations, the SaaS market is proactive and responsive. It is less cost-consuming than on-site software.
The SaaS market is driven by loyal customers. It maintains and retains its customers as it always keeps the customers engaged and guided in utilizing their services. With the flexibility in product plans, customers can upgrade or adjust this according to their needs and even can cancel the membership anytime.
What Are the Steps of SaaS App Development?
To develop a saas application, you need to create worked-out plans of the kinks of the development process. You can take a look at the steps of the development process for creating a SaaS product:
Research your market
If you are aware of the concept of SaaS app development, you need to know the conditions that will allow it to flourish. Start to analyze the market based on its users, competition, and market size. It will help you to
- Gauge target users
- Find out the issues of the users
- Figure out the solutions to resolving the problems
- Jot down the path of improvements
Test the Hypothesis
If you have a suggestion for an improved solution, you need to arrange a series of interviews to verify those. You can do it by
- Interviewing your target audiences
- Understanding the needs of your customers
- Investigating why they are not achieving their objectives
- Create a prototype and test it with users
Cross-check whether your users can pay or not
You need to find out whether your users are ready to invest in your SaaS app. You can conduct interviews with your users for the process.
Get monetization model
You must carefully handle the monetization mechanism of your SaaS application. The subscription process is a common factor of it which has its own drawbacks too. You need to invest in user inflow today to get the money each month.
You need to have a compelling system and make sure that your customers will use it consistently so that you can compensate for the costs of product development, office rental, and administrative fees. It results in robust customer retention and acquisition.
Get full control in the Tech Stack
You need to set up the technologies that will be employed in your software development. You need to cover Front-end (frameworks and libraries), back-end (frameworks and libraries), databases, servers, and infrastructure to get it done.
Prior to setting up the web or mobile tech stack, you need to get an overview of your SaaS platform’s scalability, prospective profitability, and beginning expenses.
The initial stage of the SaaS solution is MVP or the Minimum Viable Product. It is the simplest model of your application that needs minimum time and effort to design. The primary focus of an MVP is the software and the basic concept of the product.
The MVP helps to
- Test the hypotheses of the products with early adopters
- Pitch the first version of the product to the investors
If you are a startup, you must scale up the fundamental functionality of the product before completing product development. If the users receive the basic functionality, you can go for further product development.
Test and recap
After producing the MVP, you need to test it with the adopters. Things to consider before the process-
- Make sure your concept is good to go and completely easy to understand
- If this can be beneficial for the audiences and reap benefits
Contribute your time to responsive user communication. With significant user interaction, you will get more ideas on how to develop a saas application. This will help to make a robust SaaS product for the future generation.
Have well-built maintenance of deployment
Now the time is for future upkeep and deployment of the product you have developed. The SaaS business model never stops you from iterating your product. For complete product maintenance, you can
- Incorporate growth opportunities
- Find out unique opportunities
- Choose the customers and grow technical architects
- Successfully find and fix the bugs
The SaaS business model introduces a plethora of opportunities for businesses. The growing utilities are helping the developer to make it more user-friendly and easier to access.
This post helps you to find out the factors and develop your ideas on those to create a web or mobile SaaS application. A SaaS product adds optimum credibility to a business endeavor. Thus, it will continue to scale up in popularity. If you want to find comprehensive saas application development solutions, you can hire a skilled team from our company. Schedule a consultation for SaaS app development and get a quote. Develop your SaaS product and help businesses to thrive.