SaaS or Software as a Service is one of the newest trends in the digital marketing playground. A lot of startups are eyeing the SaaS business model because of the potential benefits that it can bring to their businesses. Since it is still fresh, some people find it too complex to understand. It is not a secret, though, that marketers regard it as an efficient approach to achieve business prosperity.
But to fully enjoy its advantages, you must understand what a SaaS business model is all about. Apart from learning how it works, you also need to know how you can leverage it for your business growth.
What is the SaaS Business Model?
Simply put, SaaS is a business model that utilizes the cloud to let users access a variety of product features. There is no need to download the software or install anything on physical devices to make it work. Only an internet connection and a compatible device are all you need to use the features from any location.
A business that leases its app through a cloud-based system is called a SaaS company. Its primary responsibility is to maintain the servers, database, and other apps that are needed to access and use the product. Instead of one-off payments, subscription plans are offered to gain access to different SaaS features.
How Does SaaS Help Businesses?
The range of what a SaaS business model can do to your business is very wide. Whether it is for hosting loads of data, finding a specific product that customers like, or running multiple apps, it is clear that SaaS products deliver plenty of benefits to users.
Access to the Latest Features
Among the major benefits of using SaaS tools is that the software never gets old. It is constantly updated so you always get to enjoy the latest versions and features. Your team can stay productive using innovative features. Most SaaS solutions allow you to enjoy the new functions as soon as they are released. This assures efficiency for every process, not to mention peace of mind knowing that your SaaS tools religiously get their security updates.
The flexibility to use SaaS products on your terms makes it cost-effective. You may subscribe and try the software to see if it works for you. If not, then you can simply unsubscribe, look for a better product, and move on. It means that you can invest your funds more wisely because you can control which products to spend on.
Perhaps the best feature of a SaaS business model is that it has more room for collaboration. It encourages every user to work together and give feedback in order to enhance the features. By having a centralized location (the cloud), everyone gets to access documents for review and work on revisions together even remotely.
What Makes a SaaS Business Model Different?
Some of the distinct features of the SaaS business model that make it different from conventional business models include:
- Recurring payments. Most pricing models involve subscription-based plans to access and use the software. It can either be monthly or yearly and the clients are paying for a service so you do not get to earn revenue unless you deliver your service.
- Heightened customer retention. Customer retention is the priority for SaaS business models because it is the only way to keep afloat in the business. Although clients are going to sign a contract, you can’t lay claim on the subscription money until the term of service has been completed. If you get clients to sign up for 12 months, it is crucial to cultivate the relationship so that they do not leave earlier than 12 months.
- Consistent updates. One way to promote a better customer lifetime value is by coming up with small but frequent updates on the features. SaaS products are also prone to hacking which is why there is a need to regularly offer security fixes to keep clients safe. You may need to offer enhancements, release new features or design new products to keep customers happy and loyal to the company.
Typically, the SaaS business model is both unique and exciting. There is a continues stream of innovations in this industry and there is no stopping soon.
8 Steps To Successfully Incorporate SaaS into your Business Model
Making the shift to a SaaS business model can be challenging. It requires a lot of thought, planning, and management to ensure that your business will remain competitive. You must also put into consideration your existing customers and their loyalty to your company.
Here are some tips to help you transition to a SaaS business model successfully:
Research the SaaS market and identify solutions that will best fit your business needs
SaaS tools are not one-size-fits-all solutions. Observe the industry you are in and identify what are the products that you are selling. You also need to find a specific problem that needs a solution. Consider what the customers are already using and see if there is a need to upgrade or enhance the existing products. By identifying their pain points, you get to pinpoint what SaaS solutions will work for them. It should be the start of your quest to develop a solution to their problems.
Establish a budget for incorporating SaaS into your business model.
The advantage of SaaS is that it is much cheaper compared to traditional software since you do not have to pay for maintenance, IT training, and hardware. Although most of the costs is significantly reduces, you still have to identify resources that will cover the costs of transitioning into a SaaS business model. You need to establish a realistic budget and look for solutions that fit that budget.
Develop a strategy to integrate SaaS into existing systems and processes.
The primary element of adopting a SaaS marketing platform is the integration capabilities. Your SaaS tools list should be able to connect to your existing systems and processes. It is an important feature to have the SaaS tools integrate on-site or with other SaaS software to scale your operations.
Evaluate potential risks associated with using SaaS in your operations
The main vulnerability of using SaaS products is security. You are exposing your company to potential threats so you have to prioritize the safety of your data. It is wise to invest extra for security, backups, and maintenance no matter how small your business is. It is only by implementing proper security systems that you can ensure the protection of your company and maintain the privacy of your data.
Set up authentication protocols to ensure the security of data stored on cloud-based platforms
It is a must to protect sensitive data at all costs. You need to consider building strict security and safety parameters to avoid compromising your company and the customers’ data.
Train employees on how to use new tools effectively and efficiently
Just like when buying a new car, the employees must be aware of how your SaaS tools work. Try to look for a way to avoid overloading them with new information. Use simple instructions and demonstrate how each product is used to ensure that they are able to understand everything.
Monitor usage metrics regularly to maximize ROI from SaaS investments
Although it significantly costs lesser than other business models, there is still a need to ensure that you are able to maximize ROI from your SaaS investments. There are SaaS marketing automation tools that come complete with features for monitoring and analyzing metrics. Take note of how it makes the company better in terms of ROI. See if there are loopholes that needed to be mended for you to achieve optimal performance. You can make improvements along the way based on the performance shown on the metrics.
Update software versions as needed for optimal performance and user experience
SaaS technologies are constantly evolving. You have to regularly check for updates or any improvements to make the most out of your SaaS tools. Users must not feel like they are missing out on something by committing to regular software evaluations and updates.
10 SaaS Tools You can Incorporate into Your Business
When trying to grow your business, it is encouraged that you impress the audience in order to lure their interest towards your brand. Renderforest is an amazing tool to create stunning animations, mockups, videos, and other branding assets. With its advanced features, you can create professional-quality video assets that will help grow your online presence. Work around with thematic templates, create unique mockups, and build an outstanding website easily using its premium features.
Content creation is a task that you constantly need to do when diving into digital marketing. Creasquare is a very useful tool to effortlessly scale content and make sure that you are managing your socials well. As an AI-powered platform, Creasquare makes scheduling content a breeze. Aside from social media integrations, you can also create and manage digital assets directly on the app. This eliminated the need to have a bunch of different tools for content creation, social media management, and other marketing tasks.
It can be difficult to create graphic designs on top of other marketing stuff that you needed to do. Kittl takes the pressure away by providing you with the means to create stunning graphics in minutes. It has all the tools that you may need to create designs including logo maker, AI image generator, t-shirt designer and more. Aside from precision editing tools, it is packed with high professional templates that you can edit and personalize for your brand. Some of its mind-blowing features include advanced text editing, magic recoloring, innovative texture clipping, and a library full of illustrations, icons, textures, fonts, and a lot more.
It is a must to have the best photos for your products. Removal.AI is the most reliable tool to do image background removal and quick photo enhancements. It is powered by AI technology which basically means that you have minimum input to get the job done. You only need to upload the photo and let the app do the rest. It even supports batch processing so you get to prepare a lot of photos in minutes instead of hours when done manually. This is great especially if you have plenty of product photos to edit before you can upload them to your store.
It is always a challenge for designers to create noteworthy illustrations. After all, illustrations are crucial at sending brand messages. This is why as a marketer, you need to be equipped with tools like Designstripe to have only the best illustrations for your marketing needs. Designstripe gives you access to trending illustrations that will make your designs pop. You have the choice to create a design from scratch or you may use templates that you can customize. Either way, this tool ensures that you create something that will blow the mind of your audience.
The beauty of using Drawkit is that it ensures that you have hand-drawn vector illustrations for your marketing assets. Illustrations are very powerful graphics and they can help persuade more people into believing your brand. With Drawkit, you can create illustrations that express your brand better.
One of the challenges of digital marketing is that it involves a lot of processes. The amount of tasks is simply too much that it is impossible to finish in time. Good thing that there are tools like Missinglettr that can help with this dilemma. As a SaaS marketing platform, Missinglettr gives you a way to juggle everything in one place. This means that you can use it to manage your socials, curate content, implement drip campaigns, and even do your analytics!
Spotlightr.com is the leading video hosting platform for course creators, marketers and growth-based businesses. It ensures secure streaming of videos to prevent unauthorized downloads, offering users full control over their own branding. It also provides flexibility by allowing content owners to host their files on multiple platforms of their choosing.
With Spotlightr.com, customers not only enjoy the security of their content, but also get the power to promote and grow their business with detailed analytics. All this comes at a budget-friendly price that is sure to draw in customers from all industries. Get onboard with Spotlightr.com today and see your business flourish!
Contentoo.com is the leading platform connecting businesses with pre-screened freelance content marketing talent in Europe. With Contentoo, you have access to a vast network of top professionals in copywriting, localisation and translation, content strategy, and UX writing.
No matter your needs or project size, you can integrate the right talent into your team as if they were an in-house employee, without worrying about quality. Working with Contentoo guarantees native speakers, proven expertise, and 100% satisfaction — or you don’t pay.
Hit your growth goals faster by leveraging the power of expert freelance content marketing professionals from Contentoo today.
Ensure your email communications bring the best of your brand to every message. With Rocketseed, you can easily create and manage customised email signatures and marketing banner campaigns with increased accuracy – across sales, marketing, customer service or any other area of the business.
The self-serve solution enables quick deployment and easy updates that will ensure brand consistency across all your employee’s emails. By synchronising with Active Directory, Rocketseed can automatically populate each of your team members’ email signatures. You’ll have complete control over the look and feel of their signatures as well as the option to assign different signatures for different departments or teams.
Rocketseed is the perfect solution for companies looking to enforce brand consistency across their email signature and marketing banner campaigns. With its centralised control, automated deployment and easy updates, it’s the perfect choice for businesses of all sizes.
The SaaS business model is in high demand for the right reasons. SaaS companies offer many solutions that can resolve many problems when running a business. Because it is significantly cheaper, given that you do not pay for hardware, overhead, and other costs, there is less risk involved when you want to try it out for your business.
The key to successfully utilizing SaaS for your business is analyzing what you need. Take time to study the existing SaaS tools available and see if it fits your company. When you have the right SaaS tools, you will be able to take advantage of its different benefits. Ultimately, incorporating SaaS will let you experience huge improvements in your business operations. You will be able to adapt to the new business trends easily because SaaS tools are regularly updated. More importantly, by adopting a SaaS business model, you can increase efficiency and productivity which are both good for the business.