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Sagar Patel

January 20, 2023 645 Views
18 mins read Last Updated January 20, 2023
build saas product

Quick Summary : Learn how to create a SaaS product that stands out in a crowded market with our step-by-step guide. From identifying customer needs to developing a scalable infrastructure and monetizing your product, our guide covers every aspect of building a successful SaaS business.

In recent times, SaaS has gained more popularity in delivering the software model. Driven by the increased number of smart devices and then also the proliferation of private and public cloud services, the SaaS market has intended to reach $307.3 billion by 2026. Of course, the SaaS market has become soaked speedy, and then most new people may face various challenges in winning over established brands.

In short, the SaaS market has given more credibility and the opportunity however to succeed in it. In addition, you need some more basic knowledge of its intricacies and dynamics. It is cost-efficient and flexible; also, personalization and then automation is what make the SaaS model a choice when it comes to delivering the software solution.

In this article, we will discuss the SaaS products, applications, and benefits and then how to build them; therefore, keep reading the below passage and then gain more data regarding SaaS products.

What is a SaaS product?

SaaS means to refer to software as a service cloud computing model. Almost, there available ready software will deliver thru an internet connection on a subscription basis. This means a client can access the software by any device as per their needs, as with a web browser and then by the internet connection. Well, SaaS provides peak opportunity in order to save costly hardware; this is why applications and data are stored on the remote sensors.

By the way, SaaS users do not need to deal with maintenance, security problem, compliance, and so more. Also, the cost of SaaS development is lower than the other development process. In addition, modern SaaS technologies come up with various kinds of option that enables the building platform to connect apps, integrate the internet of things solution and search or analyze the big data.

Also, big data and IoT are considered to be the topmost popular technology that will be in trend. Therefore, learning regards, SaaS is worthwhile to the people, and moving out is the best investment. There are various metrics available in the SaaS products, which will predict to develop in future as a high way. Well, SaaS businesses are lucrative, yet, you need not build a cloud-perfect solution in order to get started with it.

Benefits of SaaS

There are several benefits available in the SaaS that will be more helpful to people in various ways. In order to explain the sharp rise in the popularity of SaaS products, here we defined its key benefits. The advantages will bring you to understand building SaaS products; let’s look at it below.

benefits of saas
  • Any more setup is not needed

In case you utilize the traditional app, you have to configure it to run on your system. Yet, the company infrastructure may have enough capabilities to run the particular piece of software. In case the workload has been developed, you need to ensure the added storage, computing capacities, and network. Compared with traditional software, SaaS products are less resource taken and then there may not need any more configuration and setup.

  • Reliable payment model

Purchasing a business software license that falls under the capital expenditures degree and then it will become costly. Of course, paying a monthly fee for utilizing the SaaS platform is an OPEX; it can be a manageable amount on your company budget. Also, you may discontinue the subscription fees in case you no longer use the app. Therefore. It will come up with a flexible payment model, and the clients are getting more familiar with it because of its benefits.

  • On-demand scaling

Thus, cloud architect scales on demand in order to accommodate a more number of users. Also, a cloud-based SaaS application may easily integrate with your business needs and then give the best aid to develop the business in a great way. Cloud fees often increase; however, you must refrain from investing in high-priced infrastructure upgrades.

  • Quicker upgrades

When it comes to upgrading the traditional software, which often needs buying and selling the upgraded package, well, there is one of the SaaS benefits is to be usual improvement and development. In addition, clients may get instant access to recent application updates.

  • Access anytime and anywhere

Thus, SaaS application runs on the cloud environment and so you do not longer worry about your personal or office desktop. The WFH model also has to stay, and then the SaaS application may easily access from any place and then at any time, which means wherever you require them. Nothing like the traditional app, the SaaS may run on various devices without any more issues as opposed to being a single workstation.

  • Easy to utilize

As while contrast with traditional software, testing a SaaS application prior to buying a subscription is easiest, and then it may not give any more difficulties to the people; in addition, it may also enable you to have 3D views of all functions and features prior you accept and then buy a subscription.

  • Security

SaaS application development always puts some more unique importance on security issues. This is why various talents share the platform, and then user data protection is a priority. Also, the developers are taken an account the security of the app itself. It needs protection over cyber attacks and misuses, so more such various factor authentications are required.

  • Market reach

Of course, SaaS applications may be used in any business, and there is no matter what type of business it regards, small or big. These SaaS products are reaching out to specific markets, which may give more benefits.

  • Access to business software

Businesses that utilize the software as a service application can benefit from utilizing the market spaces, CRM sales, and then various kinds of software. The core feature of the SaaS apps is that the cloud-based functionality may enable you to utilize the products without installing the software on your desktop.

Example of SaaS

Example of SaaS

The most popular and familiar example of a SaaS application is Big Commerce. It is not one of the lead SaaS ecommerce platforms for mid-market and business brands. It has been included with various benefits also that will associate with the various talent SaaS. It includes ease to use, high performance, and often updates, coupled with platform-wide API that will allow the business in order to customize their sites and then integrate with various external applications and services.

Well, BigComemerce gives the entire shopping cart software and then hosting infrastructure to the users that enable the business in order to develop the online shop within minutes without concern about coding or hosting or software. In addition, it may also have regular updates, which will consistently roll out users, upgrades, software licenses, and hosting cost that is all covered by the monthly subscription fees. It will offer a ready-to-use, out-of-box solution that easily meets special business needs.

Also, most of the SaaS platforms are developed with IaaS or PaaS platforms. Here are some of the popular examples of SaaS products Salesforce, Dropbox, Zoom, Slack, Spotify, WooCommerce, and so more.

Types of SaaS Applications

Types of SaaS Applications

SaaS software offers various kinds of purposes, and then it will be divided into various numbers of categories. Here is some of the SaaS application that is listed below, which reflect some of the most prominent SaaS market trends.

  • CRM software 

SaaS applications for user relationship management aid in maintaining and then updating their client database, maintaining leads, forecasting sales, marketing campaigns, giving reports, the dashboard on sales activities, automatic marketing initiatives, and so on. In addition, Salesforce and HubSpot are some of the most reliable instances of SaaS CRM applications.

  • Ecommerce application

In recent times, most businesses are converted to the online mode, so the demand for SaaS software for online store management is also developed. For example, Shopify has all its takes to develop and then launch e-commerce websites that include payment system integration, product and supply chain management system, and so more.

  • Best software for project management

Of course, SaaS software has become trendy in the industry, and this is why providing more benefits to the user in all ways. When it comes to projects or any other workflow management, the SaaS software is the right and best choice. In addition, this software can be accessed from any place at any time. Also, it will be a great asset in the modern network that will complete the project in the best way. It will be suitable for all project management and then give better services without any more difficulties.

  • ERP software

Enterprise-grade resource planning software is massively available in the SaaS application. The topmost and modern cloud-based ERP system takes in complex data analytics that will suit and then aid the enterprise in processing more amounts of data. Most of the SaaS solutions utilize ML and AI in order to provide businesses with the end to end view of the business process. This software will give the topmost benefits to the people in various ways and then be used in various kinds of applications for the user. In recent times, software has gained more popularity.

  • Billing software  

Of course, a SaaS solution for billing is one of the topmost niches for SaaS application development. Various cloud-based software may help the business and then offer various services that will give more benefits. The SaaS solution includes various online transactions and aids the digital marketplace while conducting bulk payments to vendors and suppliers. In the billing software, the SaaS solution gives the best services and then offers greater aid without any more issues.

  • Marketing software

SaaS has become entrenched in marketing campaigns, so there may be more popular SaaS tools. This will helps the marketers analyze and then enhance the promotion tactics. Of course, Hootsuite exists; it is one of the best SaaS products for all sorts of marketers and content creators; that tends to provide high-level functionality for managing publication and communication on some platforms such as Twitter, Facebook, YouTube, Linkedin, Instagram, and so more. Thus, the one-stop solution dashboard enables the user to schedule the post, easily interact with the audience, manage various preferences, and so on. The SaaS software provides the topmost benefits to marketing software.

  • SaaS regards a collaboration tool

Remote work may tell whether we like it or not, and the business on a global scale utilizes the SaaS tools for remote collaboration. The tools from the SaaS helps remote and then distributed team to build a smooth and best communication process, transfer files and documents, schedule, run video chats, and so on. Of course, during the pandemic situation, we are arrested by the house, at the time; app zoom helps to keep the communication lines as easily. These SaaS tools are helpful in various ways, so they will easily integrate with the business.

  • Human resource management

The HR department is highly responsible for a range of staff-related tasks. In order to sort out the issues, the reliable and best SaaS management tools often simplify the work while gathering information regarding potential employees, maintaining job offerings, tracking and evaluating staff performance, compensation procedures, and so on. There are several best tools available to cover hiring, onboard compensation, organization culture-related assistance, and so more.

  • Vertical SaaS apps

They are niche-specific and then aid the market players in the specific industry or segment by also streamlining, optimizing the process and enhancing efficiency. It will be the best technology that empowers marketers to manage, maintain, analyze and then grow professional events over the globe.

SaaS product development process: How to build SaaS product from scratch

Build a Saas app from scratch

Well, SaaS application development has going on trend, and there may have more SaaS mobile applications in app stores. In case you need to develop a loyal and excellent SaaS application that will stand out as competitive. Here are some steps to build the SaaS application as easily, so consider it and then often complete the process.

#1. Conduct various analyses

This is the first step to developing the SaaS app; of course, SaaS app development has got a demand for new technology like Artificial Intelligence, Machine learning and then into various other immersive technology. As with the recent tech trends, start your product discovery phase in depth. In case you have to develop a vertical SaaS app, you need to know what various trends in the market trends regard your search.

In addition, you must learn about the concerned target audience and their needs or demands as you refine your SaaS app idea. The initial stage of the app development is to be competitor analysis and also study or take a deep search of your existing app, define your core competitors and then discover the weak points; therefore, you meet the client’s requirements much better.

#2. Decide your application model

Yes, you must pick your SaaS app monetization model before you are involved in the SaaS application development process. Your revenue model may read out your app architecture and features, so you must map it carefully before building the application. As per the need of the clients, you have begun to develop the app without any more difficulties. Here are some of the application models that will work best for SaaS apps,

  • The freemium model makes your app free to download; however, the premium features are offered only for a fee. Most of the cloud storage services offer free space in case you have to build or enhance the space that will move out at with charge.
  • In case you are building the topmost niche app, the subscription model may work better. In addition, in the shortest period, your user may offer the subscription fees as per their need.
  • Also, it is unnecessary to state that you may combine various app monetization models and how you may benefit from analyzing and selling the data your application may generate and collect.

#3. Sketch for security and dependability in advance

Since profitable of utilizing SaaS for business emerged, the software as a service model is also associated with security danger, and then reliability matters. The major difference between SaaS and traditional apps is that SaaS may run in the cloud, so you have to pick the best cloud vendor.

Well, reputable cloud service provider will do their best in order to secure the client data. They move with the extra mile in order to guarantee the reliability of the data stored in their data centres and influence loyal security practices.

When it comes to ensuring cloud services, various tenancies are also crucial issues. Holding various client accesses to an application places a concern demands on the SaaS application architecture. In all ways, you have to pick the best and most loyal optimal system architecture for your SaaS application and then you have to make sure that data is encrypted and backed up.

#4. Plan for third-party integration

Thus, SaaS software is specifically developed for use in business environments that should be dependable as with various other enterprise applications and tools. In any case, it may contain open application programming interfaces, and so the third-party developers may be right to use the software code and program it in order to integrate it with other applications. You have to pay more specific attention while picking an open application programming interface architecture to ensure security and reliability. At first, you have to plan with the third-party integration and then develop the best business SaaS app.

#5. Pick the technology stack

In order to develop a SaaS solution, you need to pick the best and optimal technologies for the front-end and backend applications, backend storage database, application server, and so more. Here are some of the technologies for the domain of application.

  • For the front: Well, most SaaS technologies utilize HTML, CSS, and familiar Javascript frameworks.
  • For backend storage: The SaaS developers often use databases such as MySQL, MongoDB or PostgreSQL.
  • For the server side: For the SaaS application, the developers frequently use languages like Ruby, Python, JavaScript, PHP, corresponding frameworks, and so more.
  • For SaaS application servers: Nginx is the best choice when it comes to using it.

Those, as mentioned earlier, are various techs that used or scaled your project and then integrated it with the third-party system.

#6. Develop an MVP

Thus, MVP is a minimum viable product known to be a trial version of a SaaS app with basic and simplified features. The main usage of the MVP is to be given out as proof of concept and provide users and stakeholders with a taste of your product. Well, it is built or developed on the minimum budget that allows you to examine how people accept your product without a move into more expenses. After that, you may easily change the development approach tech of your product development process.

#7. Begin the development process

You must maintain constant communication with the app development team during the development or building process. This is to ensure that you share the equivalent vision regarding product features and requirements. You have to apply one of the best agile methodologies for development, testing, and then fast time to value. In the development process, you have to consider the best process and then begin to start it. In addition, it makes more sense in order to launch the best marketing campaign so as to develop a community of users anticipating the release.

#8. Production and maintenance

After the Quality Analyzer team has completed the beta testing and then checked the production server, the application is ready for publication and deployment. In addition, the user acceptance test and the process of testing your application, as with early adopters, let you see how the user responds to your application. While you develop the SaaS application, you entrust to its often upgrade and maintenance. The user who installed your app on their devices would have seamless access in order to all application updates and then all-time technical support.

The steps mentioned earlier are the basic method to build the SaaS application as per your need of you and then by clients.

How to convert an existing app to a SaaS model

Here are some of the steps to move an existing application into a SaaS model. The list is stated below.

  • Pick a migration approach: Transferring the application and then its services to the cloud as it is and then redesigning your application in order to support the various users. Also, rewrite your application code entirely to get a cloud-native version.
  • Set the development team: Thus, SaaS application support and management need various approaches. Of course, you must train your developers before switching to the new delivery model or outsourcing the SaaS development services.
  • Pick the cloud vendor:You have to pick a provider with enough capacity in order to run your application in the cloud environment. When it comes to picking the cloud vendor, you have to put some more concentration on reliability and then on data security.
  • SaaS migration: Make sure to the safe data storage and server backup; test all components on your cloud and then perform the refactoring. Afterwards, you have to move the app data into the cloud, and then it needs to synchronize your on-prem and then cloud databases for flawless data migration. At last, you have to redirect your users’ traffic to the SaaS version.

These are ways to convert or migrate your existing app into the SaaS app.

Which Major Key Matrices should be tracked in SaaS?

Major Key Matrices

SaaS metrics are crucial data points that SaaS companies look at to discover growth and progress. The key metrics consistently included the annual recurring revenue, client acquisition cost, and customer churn. Thus, SaaS metrics are vital to meet the requirements of sales, customer success and marketing. Here are some of the popular and familiar SaaS metrics to track

  • Customer Churn
  • Activation Rate
  • Conversion Rate
  • Burn Rate
  • Customer Lifetime Value (CLV)
  • Customer Acquisition Cost (CAC)
  • LTV/CAC Ratio
  • Monthly Recurring Revenue (MRR)
  • Net Promoter Score (NPS)
  • Annual Recurring Revenue (ARR)

These are major and then popular key metrics to track in SaaS.

Conclusion

As with decreased subscription prices, improved accessibility and availability, all-time tech aid and on-call for scaling, SaaS apps have several awesome benefits over conventional software. So far, the way to develop a SaaS application is in no way a smooth question. Apart from choosing a dependable cloud seller and deciding on better application architecture and tech stack, the charge and availability of tech talent pose an actual mission.

Building a group of qualified specialists with tough SaaS development experience might also take months and the potential danger of losing your aggressive aspect. With this look upon, partnering with a pre-vetted software program development supplier with an established understanding of developing SaaS apps is a feasible alternative to setting up SaaS development. If you are looking for custom software development company near me, we are the leader in the indusry to serve you the best.


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Written by: Sagar Patel

Sagar Patel is the CTO and Co-founder of Groovy Web. He was involved in the telecommunications & Automation industry during his early career. Still, due to his attitude toward learning anything new and mastering it, he now works as a CTO for Groovy Web. Through their business mindset and logical approach, they have taken their company to the next level; His responsibilities now include all aspects of the business. Among them are finance, process design, and development.


Frequently Asked Questions

We hope these clear your doubts, but if you still have any questions, then feel free to write us on hello@groovyweb.co

A SaaS product can be monetized in a variety of ways, including:Customers pay a monthly charge to access your product through subscription pricing. Customers pay for your product based on how much they use it.
Freemium model: provide a free basic version of your product while charging for enhanced features or extra usage.
Per-user pricing: clients are charged depending on the number of users who access the product.

  • Creating a product that meets a genuine market requirement
  • Creating a scalable infrastructure capable of handling a huge number of people
  • Constantly upgrading and refining the product to fulfil the expectations of customers
  • Customer acquisition and retention
  • Effectively monetizing the product.

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