3 Best Practices for Running a Successful SaaS Business

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In today’s digital world, there is so much room for innovative and disruptive ideas that change the traditional ways of doing business and enterprise. One such idea is SaaS or Software-as-a-Service, and it addresses the need of companies and big organizations to procure software for their daily operations in a more efficient manner.Time used to be when legitimate software had to be physically purchased for each individual computer unit or network where it will be installed, and corresponding licenses gave very little room for use in additional machines. Imagine the time, effort, and cost it takes to oversee installation and maintenance of proper software in hundreds or even thousands of computers in a large company or organization.

Software Service Solutions

With SaaS, these problems associated with traditional software purchase and installation are practically eliminated. SaaS primarily works by leveraging data cloud technology, where the actual software is housed. Client-users on recurring billing subscription then simply access the software anytime, anywhere through the power of the Internet. There are no hardware costs because the software as well as all user data are stored on the cloud.

What’s more, the software is automatically updated, as opposed to old methods where patches and software upgrades are done manually. Currently, well-known platforms and software available on SaaS include Office 365, Google Apps, Salesforce, Citrix GoToMeeting, Cisco WebEx, and many others. Companies and enterprises utilize SaaS for many tasks and aspects of work such as accounting, sales tracking, communications, performance monitoring, and a whole lot more.

SaaS best practices

For software providers thinking of making the switch to SaaS solutions, it pays to know some of the best practices in this fast-expanding industry in order to help attract customers and stand out in the increasingly competitive market.

Subscription-Based Billing

Integral to the convenience and cost-efficiency of SaaS solutions is a subscription-based billing method. Compared to traditional software procurement, which is a one-time transaction that allows long-term or perpetual use of the technology, SaaS users subscribe to the software they need, usually on a monthly basis. They can terminate the subscription anytime they want to, or when they no longer need the software.

Free Trials

In as much as SaaS is an emerging system, the way to attract new customers and more users is to offer free trials, at least for a limited period of time. This is the only way that clients can experience for themselves the benefits of SaaS compared to previous ways of acquiring software for their businesses. This kind of marketing promotion is worth it in the long run because it helps build brand awareness and loyalty.

Referral Incentives

Another marketing strategy to jumpstart a strong SaaS business is a referral system. There is nothing more powerful than word-of-mouth and positive testimonials from satisfied early adopters, especially in such a new industry as SaaS. Many companies may have already heard about SaaS but are apprehensive because of it is something new to them. A good tactic for SaaS providers is to come up with a referral system that will reward existing clients who refer new users. This method helps assure first-timers that they are making the right choice to go with a particular SaaS provider.

SaaS: A lucrative industry

By all indications, SaaS is here to stay, and will most likely become the standard of software procurement and management in the near future and for many years to come. The innovation of SaaS is a perfect fit for the needs of today’s businesses and enterprises for cost-efficient, convenient, and adaptive software solutions amid a world of digital technologies. For software providers wanting to make sure they stay relevant and profitable, SaaS is a system they should definitely go for and start offering.

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