SaaS Success

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SaaS companies have grown into one of the biggest markets in business today. The demand for SaaS has increased so dramatically, it’s pulling in start-ups and legacy providers of on-premise software alike. There are several key commonalities between the really successful SaaS companies that seem to be lacking in the not-so-effective businesses of their competitors. These successful few think more in line with Web developers than traditional software companies and understand that they cannot run their business in the same way as on-premise software companies. Below are some of the ways in which top SaaS companies think outside the box and propel their businesses toward success.

Technical Development

One of the key differences between SaaS companies and traditional on-premise software providers is the way the software is used. With SaaS, multiple users on the Internet make use of a single application that runs on an Internet-connected server. This involves designing a software that can handle multiple users and keeps customers information separate and secure.

Another difference to note is analytics. SaaS companies are constantly analysing how their customers use their software and based on what works and what doesn’t, have the ability to make adjustments and updates as needed. SaaS companies are able to update their software more frequently and in less time than on-premise software providers.

Sales

While it’s true that initial sales of on-premise software providers are high, SaaS sales pull in significantly more profit than traditional providers after the first three years of operation. SaaS companies also know to focus on volume of smaller customers- more users means more monthly revenue and more opportunities to upsell enhanced functions.

Marketing

Free trials are an essential function of the marketing plan for SaaS providers. It’s important to make becoming a user as simple as possible for their customers, so being able to simply log into a web page and fill out a form is ideal. Any user who fills out the web form or signs up for a free trial becomes a lead for the sales team and can be pursued as a permanent customer.

Web and Service Functions

A unique benefit to providing your software on the Web is the ability to make customer interaction and collaboration a priority. This could mean allowing users to use configurations or rate functions of the software. The community of users creates best-practice scenarios at no cost to the company.

Customers expect to be able to access the software any time. This means constant uptime for the providers. This also means providers of SaaS must have servers in a world-class data center, generator backup, and fully meshed Tier 1 connectivity, among other features to remain fully operational. Staff must also be constantly analyzing the firewall logs to look out for unusual activity.

24/7 customer service is paramount to the success of SaaS. Users must be able to get the help they need when they need it. Internal call centers are costly and unmanageable for a start-up SaaS. As a result, many opt to outsource this service with call centers who provide 24/7 service and tie their fees to company revenue.