Software as a Service (SaaS) is a comparatively new approach which replaces traditional software license purchase. And perhaps you have already read tons of blogs on how to create SaaS products, and whatnot? But you couldn’t implement the theoretical knowledge into a practical model. Worry not! Today we are sharing a well researched “how to create SaaS application?” guide covering all aspects of this domain. So, what are you waiting for? Let’s dive into the world of SaaS product development!
What is SaaS?
SaaS (Software as a Service) is a ready-made solution given to the customer via a mobile app or web browser. Users need not deal with installation and configuration since the solution provider is responsible for the same.Also, Saas products are available worldwide via the internet. Saas and the traditional software model differ not only technically but also philosophically. The primary difference is that the customers can directly use a SaaS solution without worrying about the software configuration. Another difference between the two is, once a SaaS application is launched, developers don’t stop working on it. In fact, they are supposed to update and optimize SaaS product development services continuously. Few of the SaaS applications, including Salesforce, Amazon Web Services, Concur, are frequently optimized by developers for meeting the needs of the audience.
Why create SaaS in 2020?
SaaS is a method of using a system by subscription oma
r licensing without the need to develop and maintain it from scratch. SaaS product development could be a separate business model in which the founders create a solution specifically for others. The other model is of an additional revenue source in which a company initially generates a system for the business requirements and then issues similar functionality to other organizations.
SaaS development companies have a lot for them in the future owing to the benefits a SaaS product offers-
- Users get a ready-to-use solution without having to think about algorithms and settings.
- Customers don’t have to spend thousands of bucks on buying an expensive solution. Rather, they could just pay for the SaaS product development services they require via different subscription packages offered by the solution providers.
- The facility of Cloud storage which allows the organizations to transfer data safely.
- Bug fixing and updating are synchronous. It is mainly convenient for large companies where installing and updating solution is an expensive affair.
- Customers don’t have access to the source code, which implies that nobody can steal and distribute the SaaS product development strategy illegally.
How to Create SaaS Application?
SaaS product development strategy should be well designed, as the same could prove to be a deciding factor in your company’s progress. So, today we have jotted a couple of points one should consider before stepping into this journey.
1. Think of the Model
2. Market Research
3. Target Audience
4. Features and Functionality
5. Technology Stack
6. Monetization Strategy
7. Launch a Prototype
1. Think of the Model
The model for Saas product development process should be designed to offer constant services to customers. Users are willing to sign up for the incremental subscription payments but they aren’t going to do it for everything. Your SaaS product development strategy is going to benefit your most when your model is-
- Following a clear approach.
- Of monetary benefit to the clients.
- And applicable to a broader audience
The cloud-based approach is highly profitable as it is not only appealing to a broader audience, but it even adds fantastic features that widen the usability base.
2. Market Research
Market research is a critical aspect in your product’s long term success. The research gives you insight into the behavior of your target audience. It helps you in unraveling their purchase patterns, thought process, and much more. All of this information paints a clearer picture of the kinds of services expected on your end. Also, the research proves beneficial in analyzing different business opportunities and spot the ones with the highest revenue potential. This knowledge can aid in crafting a better SaaS product development strategy, which is going to leave a positive impact on your marketing techniques, sales revenue, and even ROI.
3. Target Audience
It is vital to answer this question since, as a SaaS Development company, your value proposition is directly dependent upon your buyers’ personality. The strategy implemented for teenagers can’t be used for the elderly or a pregnant woman. Each of these groups has varying needs, and therefore it is vital to know the mindset of buyers. Once you have identified your target audience and understood their thought process properly, you will know what they want today and what they will require tomorrow, which in return is going to benefit your company in the long run.
4. Features and Functionality
What sets your SaaS product from the competition is its functionality and how well it solves your customer’s problem. Pay extra attention to the core functionality of your SaaS application and know the ways to improvise it. To know which of the features comes in the core functionality of your solution, begin from the epicenter of the app and ask yourself if your solution fulfills its core purpose without this feature or not. So, the whole point boils down whether your SaaS application solves the customer problem or not.
5. Technology Stack
Selecting a tech stack for your SaaS product is very much similar to choosing the building material of a physical structure. Here is a comprehensive list of the tech stack you can consider for your SaaS product development:
For Client Facing Platform
- HTML + CSS
- JavaScript framework
For Server Side
- JavaScript (Node.js)
- PHP (Laravel)
- Ruby on Rails
A Database for Backend Storage
- MySQL
- PostgreSQL
And finally the Server of Your Application
- Nginx
- Apache
The options given above best align with use cases, and hence it is critical to define your platform’s scalability, cost, potential profit before making any choice.
Also Read- SaaS Product Development: Unlock the Power of Cloud-Based Solutions
6. Monetization Strategy
Ultimately, any business is done with the prospect of making money, and SaaS Development is no exception. Following methods can be availed to monetize your SaaS product:
(a) In-App Advertising
It is the steady source of income that grows as the software gains popularity. The downside of this method is a bad user experience since nobody likes getting interrupted in the midst of some activity.
(b) Freemium
It is one of the most popular means to grow revenue in the market. In this approach, SaaS Development Company offers a free version of the app possessing standard functionality, which, in result, attracts a broad audience.
(c) Paid Applications
It is again a good model for customer retention since people are usually into the habit of using things they have bought. Though it is not so easy to make people buy your products as they are unknown to the credibility and relevance of your software.
(d) Subscriptions
It is similar to the freemium model with a difference that the subscription approach gives access to extra content and no additional functionality. The only requirement of this mode is to strike a balance between free and paid content.
7. Launch a Prototype
Launching an MVP is the best way to test your product idea. The prototype can be introduced to your target audience, and the feedback received can be availed to make changes in the solution. Your prototype needn’t have all the design aspects and UX, just the basic features needed for testing the concept. The main idea behind launching a prototype is to identify the strong and weak areas before launching the complete solution. This step will give you insights into the sections that need improvements and a better SaaS application as a result.
Cost to Build SaaS Product
Your company has decided to develop a Saas application. But the main thing to understand is that the cost to develop a massive SaaS product like Google Drive and the cost to build a simple Saas product is entirely different. Obviously, the products on a large scale are costly. There are few categories which contributes in determining the cost to build SaaS products–
- Scalability of the project
- Complexity of Features
- Country in which your SaaS product development company is present
- Software Maintenance
- Server Costs
- Development and support
- Marketing
Wish to develop a SaaS product or want to know the exact cost your project may incur. Contact Matellio, a SaaS product development company, and get a free estimation.
SaaS Development Challenges
Entrepreneurship is always risky. Had it not been, then everybody would have been running a business. There is no sure shot road to success; instead it is more of a trial and error pathway. In this article, we have talked about the numerous aspects of SaaS product development. Now is the time to discuss various pitfalls that users may experience in this journey:
(a) Poor Execution
Usually, upon failure, people blame the idea, but in reality, there is no bad idea; it is the poor execution of a good idea that leads to failure.
(b) Small Target Audience
In Spite of the vertical development trend, it is very risky to choose a direction that is way too unique. As a solution provider, one has to update and optimize the solution regularly. In the case of a small audience, your business would run into losses.
(c) Lack of Trust
Trust is the most crucial factor in the development industry. Lack of trust means fewer customers. The problem is mainly acute with the SaaS model as it saves a large amount of user data, which makes it more vulnerable.
Bottom Line
Here comes the end of the article, but we hope it to be the first step of your SaaS development journey. The market of SaaS applications is continually growing, and so it is the time to come with a new and unique solution. The important thing to keep in mind is that your SaaS product development strategy must be well thought coupled with deep market research. Is there something we miss? Or maybe you are thinking about the next step! The next step could be reaching out to the experts. Got something to say? Feel free to share it in the comment box. Happy Reading!
