The SaaS industry is enormous, and it’s only expected to continue to see growth. According to Statista, the SaaS market in the US alone is worth $145.5 billion, which means after factoring in the rest of the world, the numbers are unbelievable. With the amount of competition already out there, it’s important that SaaS business leaders understand how to break through and succeed.
Effective solutions need to be offered with ease of accessibility to customers to do this. Throughout this article, we will break this down and tell you five tips on how to succeed in the SaaS industry.
Utilise Existing Solutions
“If it ain’t broke, don’t fix it”. This is an excellent notion to consider when developing your SaaS solutions. Take a look at what is working already and look for ways that you can improve upon them. If you reinvent the wheel entirely, customers will feel overwhelmed, and you will be doing more work for yourself. This includes reducing the amount of friction between customers and SaaS solutions. If you can make a complex solution happen in a simple format, you’re onto a winner.
Focus On Churn Reduction
SaaS companies rely on their regular subscribers, and the loss of these can be detrimental to their success. The rate at which customers leave a platform is referred to as “churn” – your aim is to reduce this percentage as low as possible. When a company is losing customers, it’s an enormous red flag that means more money needs to be spent on attaining new customers. A great way to deter customers from cancelling, and to be actively involved in their decision-making process, is to have the cancellation route involve direct contact with the business. This way, you can liaise with them and find a workable solution to keep them on board.
Churn is integral to working out the total SaaS revenue of a company; you should visit FE International to find out about all of the metrics involved in tracking success. If you’re ever in a position where you need to sell your company, you will need to analyse every metric to increase value.
Value Your Team
Your team is essential to the functionality of your business. When everyone works together, your customers will be able to feel it. Your team needs to be passionate about the solution they are providing, on board with pushing customer satisfaction, and innovative with collaborative intuition. A team’s work ethic trickles down from the top, so make sure you pave the way for success by valuing all employees.
APIs Are Your Friend
Application Programming Interfaces (APIs) are the backbone of almost every single SaaS company. They are used to allow different applications to communicate with each other and function effectively. Practically all tasks involving customer interaction can be completed through the use of APIs, so you need to adopt them if you’re not already.
No One Asked
We’ve all seen the meme where “literally no one asked for it”. This is a great concept to follow when you’re creating a solution. You need to conduct market research to find out what’s already out there and what questions customers are asking. Once you know where the gap in the market is, you can begin planning your SaaS and start your journey towards industry domination.
The SaaS industry is enormous, worth around $145.5 billion in the US alone. This means that SaaS companies need to put in extra work if they wish to succeed. To do this, solutions need to be kept simple, churn needs to be kept low, and teamwork must be central.