SaaS – or Software as a Service – is a thriving industry for budding business professionals. Let’s be honest, wherever we look, there’s software. It only makes sense for this to be a profitable business idea in the current age of humanity.
However, many SaaS businesses struggle to be profitable despite the fact this is such a great idea. If you’ve recently created software to sell to people or businesses, but your company isn’t getting off the ground, it’s likely down to one (or all) of these main struggles:
Lots of competition
Any industry or business idea that starts to gather weight and attention will lead to lots of competition. For a SaaS business, this is particularly challenging. What if there are other companies out there producing the same type of software? It’s hard for new software to come out and make a dent in what’s already out there.
You need to spend a lot of time making your software stand out. What can you do to give it an edge over your rivals? Look at what they offer and try to do something slightly different. Incorporate features they don’t have or think about a better price structure to tempt people over to you.
Bugs and glitches
A huge problem for SaaS companies is when bugs or glitches appear. If people have a hard time using your software, it is never going to be successful.
To make things worse, bugs can appear at any given time. You release software and it’s perfectly clean. But, with the next update, a random bug happens that causes issues for customers. This leads to customer dissatisfaction, which can dissuade people from using your software in the future. Always remain on top of things and thoroughly test your software/updates before launching.
How do you market software? It’s a difficult task that not many people have been able to master. The reality is that software is usually sold via recommendations and reviews. People check what others think about it before buying and downloading it.
So, focus your marketing strategies on this. Try to get feedback and reviews from current customers, but also enlist their help in promoting the software. There is some affiliate software out there that you can use to create affiliate marketing campaigns for your SaaS business. This allows your customers to refer your software to others, and they’ll get rewarded for it. Effectively, it’s like modern word-of-mouth marketing, but done online. Because software relies on positive reviews of testimonials to be successful, this is a fantastic approach to take.
Counter these three struggles and your SaaS business should start seeing light at the end of the tunnel. It is very difficult to make it in this industry, but it’s not impossible. Try to stand out from the crowd and make your software offering a bit different in one way or another. Ensure that it’s well-developed and free from bugs or glitches. Finally, establish a marketing campaign that revolves around growing your reputation and generating positive reviews/referrals for the software.