Tag: SaaS Application Development Services

How To Build A Successful Software Development Business

Posted on by Jay

In this age of computers and smartphones, we’ve started to rely a lot upon the software programs that give them life. Since computers started becoming prominent, there has been a boom in the software development business.

The software has made life easier for everyone, from education, entertainment, business, or the day-to-day issues, the software has brought the solutions of almost all of them at the fingertips.

The convenience that the software programs have brought to the lives of the people has increased their demands. An increase in demands naturally leads to an increase in production and the same happened with the software market.

Software businesses are growing and new startups are emerging, seeing these businesses grow, everyone at least once wishes to start a software startup. The catch is to do the right things to make it a successful one.

Here are some suggestions that could help you make your software startup a success-:

1. Be Customer-Centric

A business thrives by the efforts they put to satisfy their clients/customers. Making money might be the dream that brings people to start a business but an important key to success is to satisfy the customer.

A customer-centric business thrives over the motivation of solving the problems incurred by the customers rather than just focusing on converting them and making them pay.

Make sure the customer service is responsive, efficient, and welcoming, and you’ll retain the customers and bring in new ones.

2. Minimum Viable Product

For any business, especially for a startup, the efficient use of capital is always an issue. Businesses face risks during several stages of production and distribution, and a faulty decision can deplete a lot of money.

Minimizing risk makes business much more smooth. For a software-based company, this can be done by introducing an MVP (Minimum Viable Product).

An MVP is the most basic version of the product with only the essential features of the product. After introducing the MVP, enhancements and upgrades can be done as per the feedback of the user-base.

This way, businesses avoid scenarios where they incur losses because certain features or the software is badly received by the public.

3. Collaborative Marketing

Marketing is an important part of business development and the interesting thing is that the field of marketing is open to lots of creative ideas, innovation, and experimentation.

Out of all the methods that software businesses use to market their product, an interesting way is to collaborate with other businesses where there is no conflict of interest.

The Co-Marketing model which is used by companies to promote each other’s products helps the participating companies access the other company’s user base and thereby grow their audience.

Because of the growth in the user base at a comparatively lower expense, it is a win-win situation for all.

4. Incentivize the Employees

Efficient employees contribute substantially to a business, however, it is not easy to make them work efficiently.

Even though the employees vow to work diligently in an interview, and a lot of them keep up with their words, often an employee lacks the motivation to give it their best.

The best way to motivate an employee is to give them an incentive and appreciation for their accomplishments.

5. Solve Problems

There are a lot of startups that tend to imitate successful products and fail because people aren’t finding the product helpful. Whatever the issue is, if the product isn’t helpful to the clients, if it isn’t solving their problems, it will fail.

Before developing a software program, always do in-depth research about the demands, the issues that the people are facing, how important will your program be for them- are there any other simpler means to solve the issue, does the issue really bother them, and so on.

6. Measure, Analyze, and Improve

To improve something, you need to know its present condition, and how the outcomes are affected by changing its aspects. The same goes for businesses, you need to be aware of certain indicators that reflect how the business is performing.

saas business applicationsImage Source: Statistica

These indicators are called KPIs (Key Performance Indicators). It is necessary to monitor these indicators along with other indicators and after analyzing the situation, make proper decisions that will improve the situation.

7. Offer Packages

The main source of revenue for a software-based business is subscriptions. While it is essential to offer some free tools for a user to hang on to the software, it is important to provide some exclusive plans that offer more sets of tools.

Such extensive tools are generally used by regular subscribers and businesses who are quite reliant on these exclusive tools and readily pay for them if the standards meet their expectations.

8. Client Retention

As we discussed in the last point that subscriptions are the major sources of revenue for a software company, now if the churn rate for the software is high, the business will lose money in the form of marketing campaigns to maintain the number of subscribers.

Retaining the subscribers is the key to success for a software business especially those with a SaaS product. Proper customer support, attractive offers, and quality products are the things that can make a customer remain subscribed.

9. Third-Party Integration

People extensively use computers and smartphones these days, most of the time, they need different software programs to accomplish a particular task.

Integrating the software with third-party software programs with which it is generally used, will help the users a great deal.

Making a flexible API that can be easily integrated with different platforms and worked upon by developers will help grow the popularity of the product and increase its value.

10. Make it Simple and Intuitive

For a software program to be convenient for public use, it needs to be simple. People don’t want to go through the hassle of learning how to make use of the program to accomplish tasks.

Popular software programs have a simple interface through which people can find their way easily and find the necessary tools and paths intuitively. Make it interactive, simple, and intuitive then see its shining.

Conclusion

Software products are growing rapidly with new ideas, innovative designs, and solutions to day-to-day problems.

While the opportunity is golden and resources are abundant, the journey to success is long and a tough one. The tips that we discussed above will make sure you get across some of the hurdles with ease.

Are you looking to develop a software for your business! Lets discuss with our IT consultant

Most Important Customer Success Metrics For SaaS Companies

Posted on by Sweta Kamble

The SaaS (Software as a Service) industry has gained a competitive edge over the last few years, thanks to its customer retention and growth that has transformed the face of businesses today.

Needless to say, the inclusion of Customer Success is a crucial contributor to the success of any SaaS platform.
Customer success metrics

What Is Customer Success?

The most cited definition by a Customer Success Consultant, Lincoln Murphy states – “Customer Success is when your customers achieve their Desired Outcome through their interactions with your company.”

To ensure the success of their product, the subscription-based model in SaaS has radically changed the game for a lot of businesses, more so due to its frequent touch points with customers that require an on-going effort.

Deemed as a game-changer, Customer Success in SaaS majorly contributes to boosting conversions, raising the bar for customer satisfaction, and reducing churn rates.

Additionally, proactively anticipating potential issues rather than waiting for actual issues eliminates future escalations.

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There Are 3 Key Takeaways From This Article That Focus On:

  • How Customer Success Teams contribute towards the SaaS growth
  • Customer Success Statistics in SaaS platforms
  • Customer Success Metrics that are responsible for SaaS growth

Customer Success Teams Contribute Towards The SaaS Growth In:

  • Guiding customers in the new sign-up process.
  • Converting trial customers to paying customers.
  • Upfront demonstration of the product value.
  • Prompting for concrete feedback in real-time.
  • Updating paying customers and ensuring customer satisfaction with the product or service.
  • Influencing customers to love your product or service to make them loyal brand ambassadors.
  • Fostering relationships with customers’ businesses.
  • Increasing revenue and reducing churn throughout the Customer Success cycle.

How Important Is Customer Success In SaaS?

In the words of Jason Lemkin, the founder of EchoSign, “Customer success is where 90% of the revenue is.”

This translates to Customer Success serving as a solid growth driver for SaaS companies.

Research conducted by Databox found a myriad of answers for gauging the success of customer success efforts.

This ranged from collecting customer feedback to renewing accounts to upgrading and upselling to customers.

Let’s check the figures –

Customer success team

Smart Karrot’s statistical report on Customer Success statistics mentions that improving customer retention by just 5% can accelerate a company’s profits by as much as 95%.

Moreover, 70 to 90% of the profit generated by SaaS companies often comes from renewals, upsells, and after-sales services.

According to Bain & Co.’s study, exceptional customer success programs blended with key account management increase profit up to 95%.

With all that said, the investment needed to land new customers falls between and 25 times more expensive compared to new customer retention processes.

After considerable evaluation, the following 7 Metrics prove why Customer Success should not be taken lightly by SaaS companies.

In other words, how Customer Success is a major contributor to SaaS success can be determined by some vital parameters that can make or break your SaaS efforts.

7 Solid Customer Success Metrics For SaaS Success

1. First Contact Resolution:

Resolving the customer’s issue in a single interaction through a phone call, email, or a live chat session reduces the spillover effects of escalations. Needless to say, escalations are way threatening to ignore.

As Jeremy Watkin of 8×8 mentioned, “First contact resolution highly correlates with customer satisfaction. The higher your FCR, the more positive your customer experience and the higher your customers’ lifetime value (LTV).”

This means the absence of a First point of contact.

Contact Resolution equates to poor customer service. The inclusion of FCR on the other hand offers an easy passage to eliminate future complaints of your SaaS.

2. Educating Your Customers Upfront:

The SaaS’s growth strategy primarily focuses on easing the customers’ initial hiccups.

A user-friendly approach and your product offering are vital for SaaS success.

To eliminate the horror or escalations that might crowd the customer support phone lines, it’s always advisable to brainstorm the possible issues or questions that users might come up with.

3. CSAT (Customer Satisfaction):

Happy Customers + Product Recommendation = Increased Revenue. It’s self-explanatory that Customer Satisfaction is the primary reason why Customer Success exists in the first place.

Much of Customer satisfaction involves ‘quick’ resolution to unexpected issues brought up by customers and prospects for inquiries.

You don’t want to be judged by your prospects for poor or slow customer service, which is why satisfaction holds prime importance.

4. Upsells And Cross-Sells:

The customer’s churn rate is a blessing in disguise while up-selling your premium products and tools.

Why?

Upselling helps SaaS companies if there’s a requirement for new development or improvement in the existing offering.

Additionally, a happy customer won’t wander online to find your competitors’ tools.

A SaaS company’s profitability hinges on low churn rates and recurring revenue.

Upselling and cross-selling provide an impetus of innovation which makes it easier to sell to the existing customers than the new prospects.

A single sale turns to multiple purchases when your Customer Success team is well acquainted with your customers’ needs.

5. Brand Recommendation:

Customer loyalty leads to brand recommendation. Customer Lifetime Value translates to Customer Loyalty that in turn increases your product value.

Acquiring new customers costs almost 5 times more than retaining existing ones. CLV is one of the key metrics
that focus on the value of the customer over the monitory gain you achieve with their purchase.

The ultimate reason for including CLV in the SaaS growth strategy is retaining existing customers and attracting new ones, moreover, the profit margins are also maintained.

It also helps companies measure ROI for every new customer that in turn helps sales and marketing budget estimation.

6. Net Promoter Score (NPS):

How likely is your SaaS entitled to referrals? NPS is essentially one of the most important customer-oriented metrics as it helps companies gauge customer loyalty stats.

Net Promoter Score is a loyalty program in which surveys are filled out by the customers who in turn advocate for you and share their success stories with their colleagues.

However, the unsatisfied ones won’t bat an eye.

After the NPS survey results are out, they’re grouped into 3 distinct categories, namely:

  • Promoters (Those customers that are likely to buy and promote)
  • Passives (Those who have no strong opinions)
  • and Detractors (Those that could be at risk for churn)

7. Churn Rate:

From a retention point of view, Churn essentially measures how many customers the company loses over a given time frame.

Churn rate is measured in terms of a dollar value lost or a number of customers lost.

I’ve worked with the team at AndolaSoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.

Ruthie Miller, Sr. Mktg. Specialist

Salesforce, Houston, Texas

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Parting Words

SaaS Success begins with Customer Success.

Your SaaS company is unique and so should your customers feel about themselves and your services.

The exceptional support you provide to your customers would go a long way to retain them and help them spread the word.

Armed with this mindset, every SaaS platform today is on its way to greater success.

All in all, the final verdict is that Customer Success translates to SaaS Success.

What are your thoughts about the contribution of Customer Success in the SaaS space?

Are you looking to develop a SaaS application! Lets Discuss

The SaaS Trends You Should Watch Out For In 2021

Posted on by Jay

“Software as a service” (SaaS) is becoming an increasingly viable choice for organizations looking for the accessibility and versatility of software solutions and online data analysis tools without the need to rely on installing and running applications on their own computer systems and data centers.

Gartner predicts that the service-based cloud application industry will be worth $143.7 billion by 2022, which is a level of growth that will shape SaaS trends in 2021.

SaaS is a software distribution model that offers a lot of agility and cost-effectiveness for companies, which is why it’s such a reliable option for numerous business models and industries.

It’s also popular amongst businesses for its simplicity and user accessibility, security, and the widespread connectivity that serves to streamline business models, resulting in maximum efficiency across the board. Today, most companies are in the process of implementing various business intelligence strategies, turning to SaaS BI tools to assist them in their efforts.

2019 was a breakthrough year for the SaaS world in many ways. With a new year on the horizon, in this article, we’ll explore 10 essential SaaS trends that will stand out in 2021. But, before we do that, we will discuss the general characteristics revolving around the industry that will help put additional light on the SaaS industry trends for 2021.

Before we dig any deeper into our top ten SaaS industry trends for 2021, let’s dispel some common myths surrounding the industry.

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The Key Characteristics

Before we explore our essential software as a service trends for 2021, it’s important to consider what defines SaaS as not only a technological development, but as a working business model.

Flexible payment options: Businesses don’t have to go through the expense of purchasing software and hardware. Instead, they have the option of utilizing various pricing structures. Flexibility in payment models, where they only pay for the resource usage they need, for instance, is attractive for many organizations in today’s competitive world.

Scalability: Cloud-based SaaS enables businesses to expand with ease due to its inherent scalability. Companies can be selective about the types of features and options they want.

Updates: SaaS providers handle the necessary software updates and develop new features over time, so businesses don’t have to invest ample amounts of time in this particular area of operation.

Accessibility: With SaaS, businesses have the mobility of accessing applications from any digital device and location, making it especially convenient for mobile platforms. Additionally, it boasts ease-of-use and is user-friendly.

Increased collaboration: SaaS developments enhance a business’s ability to promote collaboration across teams and departments due to the facilitation of file sharing, in addition to a distinct ease of reading and understanding across systems.

Security: Most SaaS models are known for their enterprise-level security, which is a more holistic approach to security than many centralized, on-premise solutions. In Cloud SaaS, per-existing disaster recovery protocols are in place to manage potential system failures. This means that your business’s data is available and secure regardless of a data breach or system failure.

As businesses continue to rely on innovative data discovery tools and technologies to increase both their productivity and their efficiency, and as new software as a service trends continue to emerge, this young, groundbreaking industry can only go from strength to strength.

Even if figures diverge somewhat, the many forecasts conducted on SaaS industry trends 2021 demonstrate an obvious reality: the SaaS market is going to get bigger and bigger.

Indeed, according to Bloomberg, public cloud platforms, business services, and applications (SaaS) will all grow at a 9% CAGR (Compound Annual Growth Rate) between 2019 and 2023, and worth $60.36 billion. A Betterbuys report reveals that the specific expenditure in the U.S. SaaS Industry is forecasted to reach $55 billion by 2026.

And according to Gartner, the global public cloud service market is projected to grow significantly in 2021 and beyond.

“Customers won’t care about any particular technology unless it solves a particular problem in a superior way.” – Peter Thiel, co-founder of PayPal, one of the planet’s biggest SaaS providers

All signs indicate that this coming year is going to be an interesting, trendsetting year for the trends in SaaS industry. Of all the developments currently in the pipeline, these 10 SaaS industry trends, in particular, are showing signs of standing out as the most significant in 2021:

1. Artificial Intelligence

The first of our most impactful trends in SaaS is of the autonomous, self-learning variety.

Today, Artificial Intelligence is all over the place – it made the top 3 of our list of our business intelligence trends for 2021 – and next year, it’s expected to make some serious waves. Artificial Intelligence (AI) technologies are becoming more widespread; it’s becoming a game-changer worth $15.7 trillion.

AI optimizes business processes, increasing productivity and efficiency while automating repetitive tasks and supporting human capabilities.

Within business scenarios, artificial intelligence (as well as machine learning, in many cases) provides an advanced degree of responsiveness and interaction between businesses, customers, and technology, driving AI-based SaaS trends 2021 onto a new level. There are numerous features developed by modern software providers based on artificial intelligence such as data alerts.

With an AI algorithm using the most advanced neural network for anomaly detection, and a machine-learning algorithm for pattern recognition, these data alerts learn from trends and patterns and let you know as soon as something important happens.

That way, when a pre-set goal is met, or when something unexpected happens, you will be notified, enabling you to keep continuous control over your business.

Since it is often easy to lose track of what really matters when so many KPIs have to be monitored, an online reporting tool will safely keep an eye on your data and anticipate any fluctuation and change – and alert you when it veers off course.

Artificial intelligence is positioned to disrupt the SaaS landscape in a variety of ways, improving the key characteristics of the SaaS model across the board. When SaaS is combined with AI capabilities, it enables businesses to obtain better value from their data, automate and personalize services, improve security, and supplement human capacity.

How will AI improve SaaS in 2021?

  • Automation: Machine Learning, a subset of AI, is utilized in SaaS to automate responsiveness in customer service reports and applications, such as AI-powered chat operations with live chatbots.It will also automate the onboarding process of SaaS.
  • Personalization: Software is easier to use with technologies such as natural language processing (NLP), which automatically processes human speech patterns, and voice control. This can be deployed across customer service functionality to improve customization and better address client needs.
  • Speed: Artificial intelligence-enabled SaaS speeds up internal processes and operations, allowing businesses to obtain fast answers to questions, make quick forecasts, and speed up their overall level of responsiveness.
  • Security: Due to artificial intelligence-enabled automation, and the ability of machine learning to recognize patterns, SaaS security is enhanced by the quick identification and remedy of potential threats with built-in self-recovery.

Artificial intelligence-optimized SaaS solutions provide businesses with the ability to augment their internal processes with fast automation, more efficiently address customer service operations, and improve the level of personalization and responsiveness throughout their processes, which will remain one of the trends in SaaS to keep an eye for in 2021.

2. Vertical SaaS

Our second forecast for SaaS trends in 2021 is Vertical SaaS. Whereas Horizontal SaaS focuses on clients across any sector and industry, Vertical SaaS is completely customizable, targeting clients within specific industries and supply chains.

Some examples are healthcare analytics software, retail analytics, or modern logistics analytics. Companies who are looking to benefit from specialization are finding Vertical SaaS to be a cost-effective, industry-specific option that allows them to refine the customization of certain features.

Why the Vertical SaaS trends are going to have such an impact in 2021?

Vertical SaaS providers also have the ability to adapt features according to client demand and industry, and effectively address customer needs within their niche. This results in more flexibility and upselling opportunities, and lower customer acquisition costs.

Vertical SaaS also provides the following benefits:

  • Customer intelligence: Enables businesses to obtain industry-specific customer data and intelligence, which plays a critical role in gaining customer-focused insights.
  • Pre-defined metrics and KPIs: Vertical SaaS is already integrated with pre-defined metrics, KPIs, and analytics that businesses can utilize to assess and address daily and long-term processes and performance.
  • Business value: Software is designed to meet industry requirements; therefore, it provides a higher degree of business value for company operations and performance.
  • Improved data governance: Vertical SaaS is positioned to address data governance procedures via the inclusion of industry-specific compliance capabilities, which has the additional benefit of providing increased transparency.
  • A higher standard: In 2021, higher quality service from industry-specific vertical SaaS providers will emerge, as each developer aims to distinguish itself from the ever-increasing crowd.

3. The Growing Need For API Connections

The API (Application Programming Interface) has been a fundamental part of software development for years, and this is precisely what our third SaaS trend focuses on. With the explosion of SaaS solutions and adoption by the market, the need to integrate them into an existing business system appeared.

Some companies may want to migrate all their data to a cloud platform, but many actually would rather harmonize it with their already existing infrastructure in order to improve it – and this is where the problem lies.

At first, SaaS providers didn’t come with a complete integration solution. That failure served to complicate the work and caused them to disappoint their customers as a result

They would then redirect their clients to a third party to supply the specific APIs enabling the customer to integrate the cloud solution into their existing system.

It was indeed better for the SaaS developers not to reinvent the wheel, and to win some precious time and resources relying on third-party APIs. Their go-to-market time frame was shorter, and they could focus on their core capabilities to develop differentiated functionality.

However, more and more SaaS vendors tend to provide greater integration capabilities instead of redirecting their customers to third parties.

As Benoit Lheureux, vice president of research firm Gartner Inc., says to Tech Target: “redirecting your customers to a third-party for integration solutions when integration is a requirement in every IT project of substance is falling short of meeting your customer requirements.”

If you are looking to invest in a cloud vendor’s services, you should ask the following questions beforehand to ensure a seamless integration:

  • What capabilities is the provider offering me to integrate the SaaS within my existing business system?
  • Can this provider also integrate the legacy systems I use?
  • Is my data protected while the integration process is worked through?

4. Increased Thought Leadership

One of the most effective ways to serve the needs of your target audience is through equal measures of inspiration and education – and as more SaaS providers tap into this mentality, we expect thought leadership will become a prominent software as a service trend in 2021.

At present, only 24% of SaaS businesses publish content to educate or enlighten. Others are solely company-focused, and 11% of the primary players don’t even operate a blog, according to Callbox. Astonishingly low figures by all accounts.

But, as the landscape becomes competitive with more SaaS startups competing for the attention of savvy businesses like yours, there will be far more SaaS resources available in the form of videos, interactive apps, blog content, eBooks, and digestible whitepapers.

In turn, this will make software as a service even more widely accessible while offering businesses a wealth of new information about the industry, making it all the more transparent as a result.

While you’re waiting for this SaaS trend to blossom, here are two industry thought leaders you should follow:

  • Mamoon Hamid: A well-respected industry expert and board director on 16 SaaS operations, including Wave HQ and CloudOn.
  • Noah Kagan: A celebrated tech player and one of the web’s leading SaaS experts.

5) Migration To PaaS

As the software as a service industry evolves and innovation increases, many developers or providers will focus on customer retention on top of customer acquisition.

That said, in 2021, we expect to see SaaS migrating towards the realms of PaaS (platform as a service) – developments that empower businesses to build custom apps as add-ons to their original services. The likes of Salesforce and Box have recently launched PaaS-centric services in a bid to hold a strong market share in their niche, and we expect to see this SaaS trend become all the more prevalent this coming year.

To put the relevance of this trend into perspective, here are 3 key advantages of using a PaaS development:

  • The enhanced features, functionality, and ability to customize will enhance your overall business agility, giving you more time and creative space to innovate and focus on your core commercial initiatives.
  • PaaS offerings are, by their very nature, robust, flexible, and accessible which means you will be able to scale your business more easily by using a platform as a service.
  • Security is a distinct advantage of the PaaS model as the vast majority of such developments perform a host of automatic updates on a regular basis.

6. Micro-SaaS

The sixth of our software as a service trends comes in the form of a little something called micro-SaaS.

Like any innovative and invaluable industry on the rise, large numbers of players begin to enter the arena, saturating the market and intensifying the competition – which means in 2021, and beyond, SaaS companies will have to find new ways to innovate, offer value, and connect with new prospects.

In response to a new, more cutthroat climate, we expect to see more micro-SaaS innovations emerge from the woodwork this coming year.

Typically, micro-SaaS businesses are run by a small team, sometimes even by one or two people. Micro-SaaS products are usually complementary add-ons to existing platforms or developments, created with the aim of improving a missing feature or enhancing an existing SaaS product.

These more niche, more “miniature” SaaS offerings could prove increasingly valuable to businesses across industries in 2021, which means we can all expect a host of fresh micro-SaaS innovations over the next 12 or so months.

To clarify the meaning of micro-SaaS in a nutshell, here is a definition of the concept explained by Storemapper’s Tyler Tringas:

“A SaaS business targeting a niche market, run by one person or a very small team, with small costs, a narrow focus, a small but dedicated user base and no outside funding. Hence, micro-SaaS.”

7) SaaS Pricing Policy Change

The seventh in our definitive rundown of SaaS trends comes in the form of policy. Studies show that 98% of SaaS businesses earned positive results from making core changes to their pricing policy.

By reviewing every aspect of platform pricing, a host of companies across niches have grown their audience, connecting with a broader demographic of consumers. And this growing SaaS trend is set to evolve in 2021.

Traditionally, software as a service companies have built their business models based on flexible pricing structures. By offering flexible price points, it has been easy for vendors to drive revenue. But in a seismic industry shift, software-centric businesses have been forced to remold their pricing policies.

Stiffer competition, industry saturation, and the rapid development of SaaS platforms (improved features and functionality) mean that software as service players of all shapes and sizes are starting to reinvent their pricing models according to the needs of their clients or customers.

By leveraging business intelligence and analytics to drive their pricing structures, droves of service-based software businesses are developing more tailored pricing solutions, enjoying increased success as a result—a SaaS trend that is sure to shape the landscape in 2021 and beyond.

When looking for a potential SaaS service, value for money is best represented in a service that will meet your needs on a sustainable basis. Make sure you keep this in mind in 2021.

8. Platform Unbundling

One of the most disruptive SaaS trends in recent times, platform unbundling is set to dominate the landscape as we move into 2021.

Most traditional software as a service platforms are considered horizontal, offering every single feature or function imaginable in one single tool. But, as user needs become more complex, and the industry continues to evolve, platform unbundling is likely to become all the more prevalent.

Every business—depending on its size, sector, and culture—has a specific set of needs, which means that today’s vendors are beginning to realize that not all of the functionality on their platforms suits every prospective client or customer. That’s where unbundling comes in.

Unbundling is a term used in reference to the growing list of startups that provide software-based solutions packaged in the form of an API (application programming interface) rather than a typical ‘full-featured’ platform. Such businesses are on the rise and are expected to make their mark in 2021.

While this is indeed food for thought, it’s important to remember that not every solution will suit an API-based unbundling business model. For instance, when it comes to data analytics, ambitious companies across industries will look to a centralized solution that offers all of the insights, features, and functionality required for online BI in one place.

While it’s important to remain abreast of this most vital of SaaS industry trends, before looking at unbounded services or offerings, you must consider whether doing so will work for your enterprise and its ongoing commercial goals. If you’re looking to improve your data analytics processes, in particular, unbundling is unlikely to be the answer.

9. A Mobile-First Mindset

Number nine on our essential list of SaaS industry trends is centered around the topic of mobile. By the year 2022, experts project that around 72.6% of the world’s population will browse the internet using their mobile devices.

In our mobile-driven age, we’re free from the shackles of time or geographical location, meaning that people can connect with their peers and remain productive 24/7, 365 days of the year. We are in the midst of a portable age, and as more innovative software developers wise up, the mobile-first mindset will serve to shape the future of SaaS.

Increasingly, companies across sectors operate critical parts of the businesses from their tablets or smartphones. Moreover, more employees than ever feel empowered to perform their jobs better by being able to work with dynamic mobile dashboards and various tools.

More software providers will adopt a mobile-first mentality, optimizing their offerings to suit a host of mobile devices. This means we’re likely to see an even more impressive array of mobile features in 2021. Also, as we move towards a new year, increasing numbers of software as a service vendors will develop new solutions to meet this growing demand.

To cut through the noise and push yourself to the front of the pack, offering robust and reliable BI tools that work across desktop and a range of mobile devices is essential.

Mobile devices and screens require a unique set of features and functionality, and by placing their focus on mobile-first design & development, SaaS vendors are likely to enjoy a healthy return on investment (ROI) next year and long into the future.

Mobile-first is, without a doubt, one of the most integral SaaS industry trends for 2021. There will be more portable platforms available to your company’s disposal than ever before — don’t miss out.

I’ve worked with the team at AndolaSoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.

Ruthie Miller, Sr. Mktg. Specialist

Salesforce, Houston, Texas

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Enhanced SaaS Solutions For 2021

SaaS industry trends aren’t showing any signs of slowing down, and innovative SaaS solutions will only continue to grow in the coming years. Artificial Intelligence-empowered SaaS, Vertical SaaS, the growing need for and development of API connections, increased thought leadership, a migration to PaaS, a plethora of micro-SaaS offerings, mobile-first innovations are here—and these software as a service trends are shaping the future of SaaS.

“Dreamers are mocked as impractical. The truth is they are the most practical, as their innovations lead to progress and a better way of life for all of us.” – Robin S. Sharma, author & tech advocate

Above all else, these inspiring trends in SaaS are a testament to the enduring future of the industry and our increasing societal demand for robust software-centric solutions across the board. The revolution is here, and it’s digital.

We are in the age of digital transformation. As more companies migrate towards a cloud-based, data-driven existence, the scope for offering practical software innovations will continue to rise, and rise, and rise.

As data continues to be the driving force behind smart business strategies in a digitally dependent world, SaaS options are going to be an increasingly convenient and affordable option across industries, both now and in the coming years.

By taking stock of these essential SaaS industry trends for 2021, you will win tomorrow’s digital battlefield, pushing yourself ahead of the competition.

With these 10 trends in SaaS positioned to further enhance cloud-based solutions on the cusp of 2021, organizations, like yours, will have the technological capabilities to drive their business objectives towards successful outcomes.

For more digitally-driven insights, explore our guide to getting started with big data analytics and business intelligence for small business— or talk to our SaaS expert.

This Is Why SaaS Is Getting Popular

Posted on by Akash Tripathi

60% of businesses today are online and they all use SaaS products in one way or another. SaaS is nowadays considered an important part of a company’s unhampered growth and success in the ever-changing market.

So, let us have a peek into why SaaS is getting popular and how it can help your business.

What Is SaaS?

What is SaaS?

SaaS, elaborated as Software as a Service, is software providing technology that enables users to access data stored on the cloud from any device, connected to the internet using a browser.

It helps businesses run their applications on the cloud version without having to worry about investing in their hardware.

It has been in the picture since the late 1990s and has been a proven cost-effective solution for businesses.

Further simplifying it, It is a software on demand which offers IT solutions over shared infrastructure usually deployed via the cloud network rather than owned separately by a particular business.

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If you are looking at and thinking about why SaaS is so popular with businesses these days, then let’s dig into everything you need to know.Reasons why Businesses are Preferring SaaS

Here are some of the prominent reasons why businesses are going with SaaS:

Reduced Infrastructure Costs:

While you deliver your next software/project to your client using SaaS, you do not need to worry about all the key infrastructure it will require to run properly.

All infrastructural needs for your project are completely handled by your SaaS provider.

The providers are the one who are responsible for dealing with all the necessary infrastructural needs of your project.

The SaaS provider is also responsible for all the maintenance that your infrastructure will ever require during the time it is being used by you.

Low-Cost:

SaaS services are affordable for almost all businesses because SaaS providers charge businesses as per their usage. It is a cost-effective business solution as you only pay for the infrastructure you use.

As opposed to establishing the company’s infrastructure for the project, where costs can go sky-high and the resources might not get utilized to their extreme.

Trouble Free:

Every aspect of the infrastructure is handled by the SaaS provider, ranging from installations, maintenance, and upgrades, if needed all are taken well care of.

This results in almost no infrastructure related troubles for the business and ensures smooth working of it almost all the time. SaaS vendors always take care of their promises and try to handover their solutions in the designated time frames.

Fully Scalable:

As a business, we all want a service or infrastructure which we can expand and scale as per our needs.

When we run high on projects we would usually need more infrastructure for deployment and other parts of the project, whereas when the company is a little bit low on its workload, it requires less of everything.

SaaS helps you right away with this, when the company wants to scale up its storage capacities, it can be done quickly by just opting for a bigger plan, hence, eliminating all the needs of buying and implementing our infrastructure which can result in a lengthy process in time-critical businesses.

Unlimited Updates:

SaaS vendors usually take care of your software’s updates and also suggest and do upgrades as and when necessary, introducing you with the newest features in the market which can help you score big in your business.

You will always be in front, with all the latest patches and software updates delivered to you very easily and without any underlying complexities.

Secure:

SaaS vendors earn money based on the trust people have in their company. As the trust of people in SaaS companies increases, more people opt in to use the solutions provided by a SaaS company.

SaaS companies usually set up their data servers in such a way that they are geographically scattered. Scattering servers decreases the chances of security breaches and also provides more up-time to the customers.

While SaaS was on its progress stage, many companies held back off because they thought that SaaS was not fully secure.

But as time has passed SaaS has proved everyone wrong, and has emerged as a secure way for companies to use software and store their data.

Great Availability:

SaaS service providers always ensure that their systems are up and running all the time, most SaaS vendors have recorded uptime of 99%.

With this, all that you need to have is a computer connected to the internet to manage your tasks easily. This makes it particularly easy for everyone because a request is all you need to access the data.

So, what is the Future of SaaS in businesses?

Increased Productivity And Newer Apps:

Oracle’s reports show how widely GitHub’s user base grew between the users 2012 to 2018. It rocketed to 31 million users from a mere 5 million users in 2012.

This growth in user base points to only one direction, better and more proficient software developers, which have increased productivity and better ideas to deal with all the problems they are pitched with.

As a part of technological advancements taking place with SaaS, newer and more improved apps can come into the picture. SaaS will improve coding processes and the development tools indulged in it.

More Businesses Migrating To Cloud:

Today more and more businesses are starting to use cloud-based solutions for their workflows.

As the time comes, about 80% of businesses will migrate from the traditional, privately owned data warehouses to public cloud data warehouses, which will be a driving force to the companies of the future who want to implement and use different work cultures as well as for trying out different options for data storage.

Extensive Use Of AI And Machine Learning:

As per the reports of Oracle, 89% of people use voice assistants in one or the other way. AI-powered chat bots are used by companies to be connected with their customers always.

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Companies no longer rely on management for critical decisions, rather they use AI to make efficient decisions by feeding in the most accurate data available for a specific decision.

Final Thought

SaaS is an evolutionary system, which will always help you in one way or the other as it has so many benefits. It is a service where you pay as per your usage, so it simplifies costs greatly for companies.

SaaS solutions offer integration and customization capacities for all types of users.

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More and more businesses are now adopting SaaS platforms for their daily works and every other project. SaaS systems greatly decrease the complexities involved in deploying software projects.

These are some of the reasons why SaaS is getting popular with businesses these days.

Make The Best Use Of SaaS Development Services

Posted on by Jay

Let’s start with What is Software as a Service (SaaS)?

Gartner describes “Software as a service (SaaS) is software that is owned, delivered and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions that is consumed in a one-to-many model by all contracted customers at anytime on a pay-for-use basis or as a subscription based on use metrics.”.

In other words, the application that you can use to deliver and managed remotely, and you can access it via your web browser (and mobile device).

All verified end users can connect to it over the internet at any point in time on a subscription basis or pay as you go basis.

As these Cloud-based SaaS solution which can be accessed from various devices like laptop, tablets, and smartphones. It is more important for workers as they can work from anywhere and at any time. Particularly, on this Covid19 Pandemic situation.

What is SaaS Development

Source: Cleveroad.com

SaaS platforms are ever showing smug with their current growth arrow or customer churn rates, even they are the peak of their performance.

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In 2022, you need to take a deep dive to assess the productiveness of your SaaS marketing and engagement strategies to find prospective adoptions.

“52% of SaaS companies increased their spending on customer retention last year.”

“55% of SAAS companies rate Customer Retention Cost as the key metric to measure. (Totango)”

Chris Lean – 310creative.com

SaaS And Andolasoft

SaaS application models are only continuing to grow in popularity, thanks to their scalability, flexibility, license cost reduction, and automatic updates.

Yet while it offers many advantages over on-premise solutions, SaaS also present certain unique challenges that companies need to keep in mind.

This infographic shares the core benefits for adapting the SaaS Solution and how Andolasoft can make your development journey clean and clear.

Let’s get started:

Make the Best Use of SaaS Development Services

Conclusion

By choosing the right approach, you will obtain the ability to maintain, distribute, license your product in the most convenient ways.

But while switching to the SaaS model, you must consider your business strategy that will vastly increase your odds of long-term success.

So, do not hesitate to ask your question and seek clarification from our technical gurus. Let’s talk!

How to keep your SaaS Startup Revenue on Track

Posted on by Jay

After an unprecedented bull run for 11 years, SaaS businesses are faced with a lot of uncertainty as they overcome the business impact of the global pandemic.

There is no fixed path ahead. The truths of each Monday are re-calibrated by next Friday. In the current scenario, agility is critical. You must look at the right leading indicators to make decisions quickly or risk getting buried under loads of data.

While revenue metrics like LTV, CAC, NRR, and Quick Ratio are solid ways to diagnose long-term trends with respect to how the business is performing, it is important to look at the leading indicators of your revenue health, and act on them before they significantly impact growth and cash flows.

Let’s dig into some metrics you should consider.

Cash Burn

Cash burn, the rate at which companies use up their cash balance or reserves, can be impacted by both revenue (inflows) and expenditure (outflows). It’s always good to conservatively assume a higher burn rate unless your business is accelerating.

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Even though there are multiple variables impacting your revenue, the key lies in being flexible and reacting wisely from an expenditure standpoint. It’s good to plan for all outcomes, and not assume you’re going to have a V-shaped recovery.

Practice conservatism and have one to three months of a runaway. This is impactful if the current situation is going to linger longer.

If your vendors are affected, reach out. You could prepay some of these expenses and probably negotiate a discount as well. A 10 to 20% discount means cash sitting on your balance sheet, which eases your expense burdens in the future

Sales Outstanding

At Andolasoft, we are seeing the DSO ratio increasing across all our clients as end customers are slow to pay in recent months.

Sales outstanding is basically calculating the time it takes for you to collect an invoice. This metric is one of the few things you can control.

If you received payment in 20 days pre-crisis, depending on the business you’re collecting from, it might take 30 to 40 days moving forward.

This could have a huge impact on your working capital. When forecasting for the next three to six months, take a closer look at the day sales outstanding ratio.

Accounts Receivables Aging Report

Given that most customers might be freezing their budgets, you may want to close payments on your receivables sooner than later.

On the other side, we’re also seeing businesses with stronger cashflow positions offering more lenient payment terms up to net-60 and net-90 days to build a stronger rapport with their customers.

A real-time accounts receivable aging report lets you see how much money your customers have paid, any outstanding payments, and current debt.

Aging reports help identify customers who aren’t paying, which makes it easier for you to reach out and negotiate payment terms.

Lifetime Value

The next thing you need to focus on is your growth sustainability. Growth should never come at the cost of profitability.

If you acquire a customer with a higher customer acquisition cost (CAC) and low lifetime value (LTV), it means you’re scaling but not profitably.

One way to balance growth and profitability is by the rule of 40. If your growth rate plus EBITDA equals 40%, it means you’re growing profitably.

In this scenario, you should ensure you’re bringing in the right kind of customers and make sure that your retention is high.

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Ruthie Miller, Sr. Mktg. Specialist

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The advantage of an LTV metric is that it gives you an idea of your customers’ quality. It also shows how well you’re able to retain them, which in turn, helps your team prioritize the accounts that are more likely to last longer than a free-trial period.

Total Credit Notes

Finally, you should be closely watching the leakage points in your revenue cycle.

The total credit notes report shows you the impact of credits and refunds you’ve offered to customers. While churn is bad news in itself, full refunds are even worse as they impact cash already in the bank.

I see some businesses restructuring their refund policies to only offer credits at this time, but it might have a significant hit on the brand. An option can be setting up internal policies, to look into the merits of each refund, then process it on a case-by-case basis.

On the other hand, acquisition teams are starting to use more coupons and discounts to close more deals.

While discounts are a great way to retain customers and continue running the sales machine, you need to watch its impact on revenue and ensure you are reporting on monthly recurring revenue (MRR) and leakages correctly.

This way, you wouldn’t be pushed to a scenario where sales continues to close seemingly big numbers, but with all the heavy discounts you don’t even see its impact downstream on total MRR.

Everything you knew about growing a startup or SaaS business has been upended. You’ll be faced with making tough decisions and your commitment will definitely be tested.

But with a clear understanding of your startup’s health and how your finances are changing on a daily basis, you can navigate these choppy waters.

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