How To Build A Successful SaaS Product
To get a grasp on how to build a SaaS product, you need to make a lot of effort. But we can make your work easier. This article aims to help you understand the foundations of the topic. Here we will share some of the best practices for building SaaS products.
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SaaS Product Determination
SaaS (Software as a Service) products are cloud-based applications that allow customers to access and use the apps from anywhere, using any device. Users can access them through a web browser or a dedicated application.
SaaS products typically stick to a pay-as-you-go or subscription basis, offering unlimited access to functions for its users.
Examples of some SaaS apps:
SaaS Product Types
There are many types of SaaS products, but the three most common ones are CRM, ecommerce, and collaboration tools.
CRM products allow businesses to manage customer data and interactions in one place. They can also help track customer satisfaction and conversion rates.
Eсommerce products allow businesses to create online stores. They can provide sales tracking and analytics, as well as marketing tools to help drive traffic to their website.
Collaboration tools let businesses collaborate on documents and tasks together. They can also provide tracking of who has completed a particular task, as well as notifications when contributors have updated the file.
The advantages of SaaS include the ability to:
- Reduce costs associated with software licensing and infrastructure by offloading these responsibilities to the cloud
- Increase agility by allowing you to scale your business quickly and easily without having to build and maintain your own IT infrastructure
- Increase customer satisfaction by giving them more flexibility and control over their technology needs.
How to Build a SaaS Product
Once you got an idea to create your product, how do you determine which features to build? And how do you go about developing them? The answer to both of these questions involves understanding who your target customers are.
You need to know their needs and what motivates them. You also need to understand how to solve their problems through your SaaS product.
Moreover, you should be aware of what's available on the market today to make an informed decision about which features to build into your creation.
And it’s just the beginning of a rabbit hole. The deeper you go, the more you will realize how much you need to do. So here are five tips for you to pass this trail successfully.
Step 1: Market Research
At the start, we recommend you analyze the market and answer the next questions:
- How could your product help its future customers, and who are they?
- How many competitors are there on the market, and what are their key features?
- Can I create a better product than those already on the market?
Additionally, it would be useful to create a list of your top competitors. Thanks to it, you will have the opportunity to look at their work from different angles. Understanding it would bring you ideas on how to build a SaaS product that will become even better than the competitors’ ones.
Step 2: Business Plan Development
When starting a new business or expanding an existing one, it's always essential to have a business plan. It can help you identify your target market, determine your pricing strategy, and map out how you will achieve success.
Firstly, you'll need to create a detailed outline of your product and how it will be marketed. Secondly, you'll also need to consider the costs associated with launching and running your product, as well as what resources you will need to make it a reality.
So if you're planning on building a SaaS product, include all of these details in your business plan. Doing so will ensure that your creation is successful and meets customer expectations. And be prepared to continuously update and evolve it as you progress through the startup process.
In total, there is no one-size-fits-all answer, as the business plan development process will vary depending on the specifics of the SaaS product and company. However, we can show you ways to monetize it. Among them are:
- Per-Storage Model. Users are charged based on the amount of space they need.
- Freemium. You provide limited functions free of charge, and customers get more features after upgrading to a premium plan.
- Pay-As-You-Go Pricing. The more functions clients use, the more they pay.
- Per-User Model. Your pricing will depend on the number of users that use the SaaS app. The more people use it, the lower their fees will be.
- Flat-Rate Pricing. Each function of your product has its own price.
You can use one of these pricing model options to monetize your business.
Step 3: Define Your Requirements for a SaaS
It’s crucial to give your clients as maximum robust features as possible. Since it’s the face of your brainchild. The basics of a great SaaS product include:
- Data safety at a higher level
- Simple and easy-to-use interface
- Multiuser infrastructure
- Considerate and timely clients support
After identifying SaaS requirements, it’s time to work on an MVP.
Step 4: Create an MVP
Your minimum viable product (MVP) must be user-oriented and show people the key functions in a limited amount. Its main goal is to get constructive feedback from users. This is a pretty thrifty and quick way to test your business idea.
The research results will help you conclude your product value for potential clients. And SaaS MVP is also useful in terms of discovering the business concept. Thus, you will have the report dedicated to customers' opinions on the functionality of the future product and, naturally, the way you envision it as well.
Step 5: Choose the Right Development Team
In the previous material, we were talking about how to choose the right SaaS development company for your needs. We suggest you checking out this post to discover the question in full.
Shortly, it would be beneficial for you to master some key skills before searching for a contractor. Then you can start defining your needs and researching & analyzing outsourcing companies. Only after passing this way will you be able to find true professionals who fit you well.
Now you’ve caught the gist of how to build a SaaS product, haven’t you? As you can see, it is not easy, but it is definitely worth it. And you will be on your path to success if you follow the tips from this article.
Our company offers services in SaaS development. The Wetelo team has experienced specialists who will do their best to help you build a successful product. So we propose you to get in touch with us if you are searching for such an opportunity.
Have a great day.