How to start a SaaS business

From social media marketing to the Internet of Things (IoT), technological advancements have revolutionized the way business is run today. One such tool that businesses can use to grow their business is SaaS.

In this article, we’ll provide all the key benefits and details of SaaS and how you can leverage this growing technology for your business.

But first, let’s make sure we all know what SaaS is, and then we’ll dive in deeper.

What is SaaS? 

SaaS or “software as a service” refers to the use of Internet storage, or “the cloud”, to deliver software to customers anywhere, anytime. This brings benefits such as reducing product costs for the host and easily providing ongoing, often subscription-based service for customers.

SaaS is often associated with cloud computing. In this style of computing, users access software using a client such as a web browser. SaaS is approved by the majority of contractor software vendors.

SaaS has great potential for growth in today’s digital world, but of course, to achieve a certain level of success and growth, it is necessary to incorporate appropriate strategies.

How does this relate to your work? Well, here are the 7 secrets to growing your own SaaS business.

 1. Focus on customer needs

When starting any business, it is essential to ensure that there is interest in the product or service you are offering as an on-demand service.

To do this, do your research before putting your plans into action. It’s best to do targeted, small-scale testing when launching a product as a service, and not to dive into large, untested, unknown enterprise commodities first.

2. Quick Recovery vs. Quick Release

It pays to be first, but also know that the first innovators to market aren’t always the first to monopolize. Take for example the first engine MySpace, which Facebook eventually overtook. The business world is full of similar examples.  

Nurture and grow your offerings. If you see a need for a new product, a large number of customers are ready to use it.

 Then, develop, test, launch and organize your offer. Being tough is pretty much the key here – or you might find yourself overwhelmed by those embracing your idea for a bigger purpose while learning from your mistakes.

3. Attention to detail

You don’t need to manufacture products that already exist. Focus on expanding your access to new and improved ideas. Customer feedback will generate new ideas. Using a standard product like Compox allows you to collect and analyze all of these comments in one place.

Software doesn’t have to be a perfect first release, Microsoft rarely (if ever) releases a perfect first release, they follow it up with lots of updates, fixes and improvements.

4. CAC and churn

It is very important that you find a way to manage costs and resources based on the number of customers using your product.

If you can expand your customer base, it will help expand your reach in the industry. For this, you must know the basic terms to work in relation to the trade.

  • The ACC

CAC stands for Customer Acquisition Cost. Understanding CAC is key to realizing how profitable your SaaS can be and how successful it can be in the future.

  • The churn rate

Churn rate refers to the percentage at which customers cancel their subscription to your program. The percentage is your cheat rate, so the lower the slash rate, the better your software will perform.

Keep track of what’s going on and make sure it stays as low as possible. When your markdown decreases, your LTV (lifetime value) automatically increases, which means the average yield of your customer remaining in the circle of customers increases.

5. Teamwork with management

The success of the company does not depend on a single person. Everyone in the company must act as a unified body for their product to succeed, regardless of the numbers.

If you have a good management team, great employees will be hired. Good employees mean good products and therefore good business.

6. Find a scalable way to gain new users

SaaS being a relatively simple and flexible startup model – combined with successful projects, this method makes people assume that it will be easy to acquire new customers.

Having a good, usable product doesn’t necessarily mean customers will show up and sign up.

While this is true for a small number of start-up businesses, it’s not the norm, the process of getting customers for your product can be the most difficult and expensive.

To make this process easier, you can offer trials with a satisfaction guarantee. This guarantee may include a refund within a specified time after the initial purchase.

You should also be very careful with your prices. Customers can be smart and many will want to know every detail down to the latest feature.

7. Publicity is key

Using marketing strategies like advertisements can be very beneficial when it comes to attracting more customers.

You can use free infographic, advertising, and logo creation tools, like Adobe Express , to make the job easier.

It goes without saying that advertising is necessary to help a business grow… By attracting new customers and generating brand awareness, allowing you to sell more products.

To finish

If you’re ready to scale your SaaS business and need to integrate all the platforms you leverage to attract customers, you can easily integrate them together in Combox, bringing the power of a single platform to your business, reducing costs and being more responsive to your potential customers.

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