This is the second part of a three-part series on software as a service (SaaS) by Hardik Shah, a Tech Consultant at Simform. In part one, we discussed the benefits of SaaS apps and why companies need to think about moving to them. Being a software distribution model that allows users easy access to cloud-based apps even if they are not locally installed, SaaS opens up a host of opportunities. This article talks about six key considerations to keep in mind when designing and developing an effective SaaS application.
Before you start on your journey to build a SaaS application, here are six key points to consider. To help you align your development plans and processes better and to develop a successful application.
1. Know Your Market
A thorough understanding of the market is essential for developing a successful SaaS application. Therefore, conduct a detailed survey of what the current market needs at the moment, and based on that feedback, devise a plan for features you should include in the app. In today’s day and age, if you want to be ahead of your competitors in the SaaS business, a highly competitive market, you need to have a dedicated research and development team.Â
Give them time to understand what could be your potential buyers or targeted audience, which demography you should target, what tech stack you can use, and how you can fill the gap in your niche to make your SaaS applications stand out from the rest of the market. Once that’s decided, you need to list the essential features for your MVP release.Â
Some of the critical features that you consider are:
- Single sign-on
- High-end securityÂ
- Multi-tenancy model
- Subscription-based billing facility
- Elastic infrastructureÂ
- Data securityÂ
- High availability and accessibility
- Scalability and flexibility
- Automated provisioningÂ
2. Finalize Pricing Model
Understanding the pricing model is also necessary. Don’t aim too high or vice-versa. Find the middle ground you need to succeed in this field. Offering subscription models will allow you to cover more audience bases and attract more customers. There is no one-size-fits-all type of approach for the SaaS pricing model. Over the years, successful organizations have adopted various pricing models and proved that the current trend of the market plays a significant role.Â
Also, the pricing model varies as per the offering and vertical you’re targeting. For example, mobile devices adopt the freemium model to get into the market. Then, over an extended period, app developers try to convert this freemium customer to premium ones and generate revenue. So, it all boils down to the project’s individual needs and current market status.Â
See More: Benefits of SaaS: Why Companies Should Make the Shift
3. Create a Client Acquisition Pipeline
Most people only focus on the technical aspect while developing a SaaS application, and you should also plan how you’ll get clients. Creating a rough acquisition pipeline with fair policies would be of great help. Successful SaaS products have a clear idea about their client acquisition pipeline.Â
They knew what that cost would be and how it would stack up against customer loyalty. The aim for SaaS companies is to cover the acquisition cost within 12 months. In other words, in a year or so, you need to have some kind of base customers on which you can build your business.Â
Also, keep in mind that SaaS products have a longer sales cycle. So, prepare a team in advance that can maintain good relationships with your customers and convert them into your bluechip stocks. Lastly, adding new customers and relationships are also vital for the acquisition.Â
4. Plan for Scaling from the Start
Scaling is a USP of any SaaS application, and therefore when you’re planning to build one for your enterprise, make sure you give importance to this aspect from the very beginning. The software you’re developing should scale horizontally and vertically as per the user requirements. In addition, having multi-tenancy in your SaaS product is paramount as it allows multiple customers to access the same product at the same time without compromising performance and security.Â
Multi-tenancy can happen at three layers: (i) infrastructure, (ii) application, and (iii) database. Based on this phenomenon, there are four major multi-tenancy design options: (i) isolated, (ii) infrastructure, (iii) application, and (iv) shared. You can choose any one pattern as per the need of your product and create an option through which customers can quickly scale up/scale down.Â
5. Select an Appropriate Database
For running your SaaS application seamlessly, selecting an appropriate database is vital. Having a giant, secure, and flexible database for your SaaS app seals the deal. Consider the business needs while choosing a particular type of database. Nowadays, people frequently use two major types of databases – (ii) SQL and (ii) NoSQL databases. SQL databases such as MS SQL, MySQL, PostgreSQL, OrientDB, etc., were the preferred choice in a centralized hosted environment.Â
However, in the day and age of SaaS, applications get hosted on various cloud platforms, and they operate in a serverless environment. Therefore, you need databases that coexist with them, and NoSQL databases have become a preferred option. DynamoDB, AWS RDS, MongoDB, Hadoop, Amazon Aurora, etc., are the most popular ones that one can explore.Â
6. Provide Updates Regularly
No software is picture-perfect. The market demand and the client expectations keep on changing with time, and to stay relevant in the market, you need to release a newer version with more advanced features. It will help you to stay ahead of your competitors in the market. Nowadays, the demand is for continuous improvement, and that’s where SaaS providers are opting for the DevOps methodology.Â
You can implement a DevOps pipeline to release and launch new updates or releases. It will help you automate all the processes and eliminate the need to track any bugs manually. The automated CI/CD processes would check all the time for any minor bug and informs developers about it. The development team can rectify it before it goes into production and thus, make quicker, efficient, and quality releases that customers love.
After walking through the second part of this series, you must have a clearer idea of the components you need to make a successful SaaS application. In the third and final part of the series, we will explore the steps to develop one.
Stay tuned for the final article in this three-part series to know all about the steps to build a successful SaaS application. Let us know if you have any questions about developing SaaS apps on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We love it when you share with us!