Why your SaaS company is not doomed
March 7, 2019
Software as a service (SaaS) companies tend to grow faster than companies in other industries. This is a reality and an expectation. If a software company grows by only 20%, it’s more than 90% likely to fail.
For many, this statistic is intimidating. But we must consider the duration of growth and whether this is an isolated issue for SaaS companies. After all, 90% of startups are also claimed to fail.
The reason the statistic holds so much weight is because of the competition it reflects. SaaS companies need a running start. The industry is soaring, so growth needs to be big and fast.
That said, that statistic shouldn’t represent SaaS as a flopping industry, but instead can reflect the pressure involved in being successful. It requires constant growth and adaptation.
Since SaaS relies so heavily on growth, marketing is your best friend. But marketing for SaaS is very unique. After all, how do you acquire new customers without first letting them use the software?
Free trials are extremely practical ways to get customers hooked. Any way that you can get customers to try your product is worth adopting. Providing trials and making your service as easily accessible as possible will put your company ahead.
One of the top benefits for SaaS users is the ability to access the service from any device and from anywhere.
Customers aren’t shying away from SaaS. It simply has too many benefits. Customers are able to access the software from anywhere, without having to install anything. They don’t have to worry about updates, file saving, or access.
It’s much easier to get a customer on board, as there is no installation time, no compatibility issues, no outdated versions. By condensing the process, SaaS gets customers what they want faster.
Paying for a subscription sounds a lot less intimidating than committing and buying a program that will overcrowd your computer’s memory. That same computer that has sole access to the software. Not quite the most efficient or accessible.
Of course, a service is nothing without its customers. If the company is not customer-centered, then it’s probably not solving a problem, and so it’s probably not sustainable. This is why growth is so important. There will always be issues, new and old. Your service has to continue to cater to the demands and concerns of customers and potential customers.
Remember all that talk about growth? Well to stay ahead of the competition and to continue growing, SaaS companies need to focus on scalability. Clients need to have the ability to develop using your service, and your service needs to be able to grow and take on more clients. Therefore, the service needs to be able to scale to the client as well as future clients.
But there’s a catch. You can’t scale too early. You need to scale to your abilities and then to your customers’ needs. That might sound like an oxymoron, but it’s true. Overwhelming your business abilities can be even more detrimental than being too restrictive. Deliver what your company is ready to deliver.
With this in mind, your goals should be growing with your company. Don’t sit still. Customers have growth in mind. Their ability to grow relies heavily on the options you provide them with.
Having a basic version can get potential customers interested in your service. Having a premium or upgraded version will appeal to those who trust your service and have the drive for growth.
Automation can help scale your SaaS company. By providing automation in your payment process, customers experience the height of convenience.
Along with accessibility, B2B customers appreciate interconnectedness. It’s good for them and better for you. Integrating APIs (application programming interface) keeps your customers linked in with every application they use. A scalable company will be able to operate efficiently, and APIs can help.
Is this industry necessary, and if so, will it continue to be?
These days, young people are raised with programming skills from a very young age. Generation Z kids have never known a world without IT and they’ve been trained to deal with it. Programming education starts as early as kindergarten.
As today’s students grow and enter the business world, will they need to rely on such services? Will they see SaaS to be as convenient as we do? By that point, if our jobs aren’t all fully automated and if robots haven’t killed us off, it’s possible that SaaS will only develop more.
Think about the Google apps that have replaced your computer’s software. With the ability to access an application online, there’s no point in attempting to open an entire program. It doesn’t end there. Think about the physical tasks you’ve redefined using software like DocuSign and Dropbox.
And when it comes to cloud applications, isn’t it nice having everything in one window with multiple tabs? I have 17 open at this very moment.
Don’t be discouraged by statistics. SaaS is beneficial for both vendors and customers. Provided you’re committed to growth and understand your strengths, your SaaS has great potential.