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Top 4 Factors That Contribute To A SaaS Product’s Success
Top 4 Factors That Contribute To A SaaS Product’s Success

June 9, 2022

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Problem solving is always fun, so is developing your SaaS product and successfully launching it. But what are the top factors that contribute to the success of a SaaS product? Read here to learn more about the top four contributing factors to success of a SaaS Product.

Be it metaverse, blockchain or IoT most of these softwares are now run as-a-service. We would prefer to call them as XaaS and that X could be metaverse or blockchain or IoT or marketing and you name it. Cloud based application development has gained enough traction in recent times. Millions of software products have been launched into the SaaS Product marketplaces. But what makes a successful SaaS product? Is it the product itself, or is there an extra does, that needs to be added? Let us find out.

Many common man’s problems are often solved with technology. And this impactful problem solving has exponentially grown since Cloud Computing was launched. Today you can look at your entire company accounts in just one single screen using QuickBooks or Tally. Many organizations went paperless with these products. Track your entire sales pipeline sitting right at the comfort of your home using Salesforce or Zoho CRM. Start selling from your doorstep using shopify or amazon. When once upon a time everything was so unorganized and required us to go to different places or go to office and work, today everything can happen with a touch of a button. But are these the only software solving a common man’s problems? Certainly not. There are millions of products that are available in the market, but only few see the attention. Why?

After having analyzed many SaaS products, understanding the core team, problem they are solving and their marketing strategies, here are the top four factors, we feel, contribute to the success of any SaaS Startup:

The Team:

Who sits on the driving seat, plays a major role in the success of the startup. Being on the driving seat, the founder is responsible for most of the important things in the startup. The Idea, the team members, the cash flows, marketing, sales, product expansion etc., Now you may have read this same thing everywhere, but how should a founder be? What are the traits of a successful founder? Here are a few traits, we found, contributed to the product’s success:

  • Choose the right people on the bus.
  • Resilient to market changes/demands.
  • Intuitive and a constant learner.
  • Able to view the bigger picture of the product/service.
  • Have a long term vision, mission and aligns it with his/her purpose.

The Plan/Idea/Product:

Every SaaS product starts with an idea to solve a problem in the market. However, some startups get too distracted with their competitors that they start identifying their competitors as a threat. They stop working on their idea or refuse to adjust the idea to solve the problem. Thus these startups die in a few days after their launch.

In fact, having competition in the market is a blessing. It means that there is a demand for the product/service. It means your SaaS Product has a benchmark to work with and compare itself on where it stands in the market. A scope of improvement is always healthy to become successful.

 

 The Execution

Many SaaS product owners are quite aware that having a solution itself isn’t sufficient. The solution should be executable, able to solve the problem on hand and finally should be profitable.

Working towards effective execution means, having the right team in place, understanding the market demands and launching the product at the right time. Unfortunately, many SaaS owners are stuck at bringing the right product. Hence they tend to sit in the loop correcting their product towards perfection and finally skip the timing and demand. This leads to an ineffective execution of the product. Though the product solves a problem, the market has already been captured by the competitors or market demands more features that the SaaS product doesn’t deliver.  

 The Cashflows (Marketing & Sales):

Many SaaS product owners focus on securing funds to move to the next level. While attracting funding and investors is very important for the business growth and expansion, but it does come with few catches.

When a SaaS Startup is funded, it is equally demanding attention on growth and profitability for the investors. There is a constant watch on the startups and their pressure to deliver financial results, that they lose focus on adding value through their product. This leads to less demand creation in the market, lack of focused efforts and finally leading to the failure of the product.

A funded startup should always focus on three important things:

Creating a process around marketing, sales and customer service, plays a very significant role in demand creation and customer retention. Once you have streamlined the process of these tail-end services, you know your product backlog keeps growing. There is a healthy inflow of market demands through your customer service/customer support team, who constantly are in touch with your customers. Hence you can be confident of your product backlogs, sprint backlogs and your product itself.

 Final Thoughts:

For a SaaS product to be a success it should focus on having the right team, right plan, right execution and right cashflows. Missing any of these factors could drive you crazy on your SaaS product journey.

 

 


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PRASHANTHI KOLLURU
Founder & CEO

Experienced Founder with a demonstrated history of working in the marketing and advertising industry. Steered her way successfully through SaaS product development and marketing. Author - "Are You The Next CEO?" - A book for an aspiring entrepreneur. Lays out detailed steps to be taken to become an entrepreneur and how to become successful. Comes with a rare skillset of understanding technology and the target markets. Clearly defines the target audience through comprehensive analysis of psychographics and demographics of the target market. Works with an "end objective" in mind. Made significant contribution in designing marketing strategies for SaaS products and e-commerce platforms. Forte lies in understanding the SaaS products, proposing B2B Marketing strategies, and market positioning of SaaS products. Have worked with Multinational companies and successfully positioned them in the market.

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