The way we buy and sell products has changed since the dawn of time, and the present world witnesses an unrivaled boom in software-based services in the tech world. This article will tell you all about Software as a Service (SaaS) ideas and how you can come up with one yourself!
You can get a SaaS idea by following the market trends, identifying common problems in the market, and doing comprehensive industry research. With each step, the focus becomes more clear, meaning you will get a good product idea in the niche that you work in.
You should know about the proper ways to follow these steps and what you must avoid doing when coming up with product ideas. In this article, we will explain the correct methods to follow and give you some valuable tips from popular case studies.
A Step By Step Guide To Creating a SaaS Idea
The following three steps are a time tested method in the service sector and will prove to be a guaranteed winner when you have to choose a specific product idea.
Step 1 – Follow The Market Trends
The online market space is constantly evolving, and the first step is to follow these changing market trends. This also will help you to focus on many topics before specializing in a single trend. Practically, you can put this step into action by;
- Using social media platforms – The trending topic system on Twitter will let you identify the most talked about topics of the day in various fields. Similarly, following expert discussions and analytics on LinkedIn about SaaS trends will also prove to be useful
- Using google analytics – As the saying goes, if you don’t know anything, just google it! Google Analytics is a great place to search for market trends. Use google trends to search for keywords and check their performances in different demographics.
Constantly following the market trends will give you insight into current problems faced in different markets and disciplines. Once you get hold of these burning market issues, you can follow through to the next step.
Step 2 – Identify Common Market Problems
Shifting your focus to a specific market after following the market trends will allow you to identify the unique problems each sector faces. The important point of this phase is to focus on the problem rather than coming up with product ideas. A common market problem arises based on two specific things; time and money.
Therefore, thinking about a solution to save time or money will eventually lead you to a quality product idea. Following the job search method will help you to come up with an industry-specific product idea.
The Job Search Method
This method is deeply grounded in finding problems that industry businesses have. The best way to execute this method is to simply check for job vacancies that a specific industry has on offer. A job vacancy essentially means that a company is hiring someone to solve a specific issue.
As an example, a possible job vacancy in the marketing sector would be a marketing officer. If you have a close look at his job role and responsibilities, you will realize that one of the main duties is to constantly update and schedule the company’s social media sites.
However, if you can come to think of a SaaS application for this problem and generate a social media management software, the company can save both money and time.
Step 3 – Conducting Industry Research
By now, you should have a specific product idea in your mind. The final step is to test this idea in the current industry market. The idea that you have may not be fully original, but the industry research will help you find voids in the existing market.
Once an industry is selected, start researching the biggest businesses of the industry and the ways they operate. You can use social media platforms and google analytics to learn about their challenges. Doing a SWOT and PESTEL analysis will also help in the long run.
You also can contact relevant businesses and analyze the tools these companies use. The following questions may prove useful;
You also can contact relevant businesses and analyze the tools these companies use. The following questions may prove useful;
- What are the most stressful daily tasks?
- How much do you charge for your services?
- What software do you use?
The answers to these questions should inspire you to come up with a few possible solutions to their problems.
Alternatively, you also can use the app store method to get more insights from existing SaaS products;
The App Store Method
This method is a great way to find mistakes and voids in existing SaaS products. Pick an Appstore and choose the category your industry is set in. Sort the results out to the most popular and analyze what makes this product stand out from the rest.
You also can use this method the other way around. Sort the results to least popular and check what has been lagging behind the company. Alternatively, you can check all the 1-star reviews and see if there are any ways that you can improve customer experience that might give your product the edge.
SaaS Product Ideas
We know that coming up with a SaaS idea or researching one can be a daunting task. Hence, the below video will explain about three categories of SaaS product ideas along with one novel idea in each category;
Key takeaways from the video;
- Three main service categories of SaaS
- A SaaS platform to analyze footage using artificial intelligence
- A legal document sharing service that can be used through SaaS
- A Customer Relationship Manager (CRM) platform to social media influencers
Still not convinced about an idea? Take a look at the following novel project ideas;
E-Invoicing
The goal of this SaaS startup is to improve invoice management. An automated invoice service that is done right will help the customer cut down time spent on tracking payments for services. A start-up like this will also save money as it needs fewer resources and human input.
KPI Tracking
The present job market is all about profits and the Key Performance Indicator (KPI) is the industry standard for measuring company performance. Having a particular SaaS that does this automatically by giving access to financial records and syncing them with web analytics will generate a real-time performance indicator. This would be ideal for novel start-ups.
Designer Bookmarks
This out of the box idea brings all your important files, links, and web extensions together and shows them in one place. The bookmarks include micro SaaS app Chrome extensions, allowing you to bookmark websites.
This system will have the potential to show YouTube links, favorite Spotify songs, the Kindle bookshelf, and saved Facebook videos all in one place that allows the person to manage, sort and visit these places in one go. This can prove useful to university students and project managers.
Marketing Automation
An automation software focused on marketing management will give users the ability to automate email, text messages and social media management. An advanced version of this software can also be used to offer solutions on marketing strategies and workflows with real-time analytics.
Metrics can also be used to measure the results of marketing campaigns. A software like this has the potential to be the next big marketing tool if done properly.
Tele Healthcare
This is one of the largest growing markets in SaaS and continues to grow given the impacts caused by the covid-19 pandemic. The core product of this field is a platform that allows healthcare professionals to consult with patients online.
The value addition comes in keeping track of medical records and prescriptions given to patients; a feature that is not available in normal communication platforms. This field also brings convenience and accessibility for both parties. Although this field is highly competitive, it still has space for start-ups to make an impact.
5 Successful SaaS Products in The Market
1.Netflix
The world’s largest subscription-based streaming service provider uses a trialware model and offers three paid subscription plans after the completion of the trial period.
The company initially started as a renting shop that sold DVDs. After shifting to SaaS, the model worked so well that they currently have over 182 million paid subscribers worldwide
2. Adobe Creative Cloud
Adobe Creative Cloud is a set of applications and services from Adobe that gives users access to a collection of software used for graphic design, video and photo editing, and web development. The net worth of this software was estimated to be $2.37 million while the net worth of the parent company Adobe was $4.82 billion
3. Dropbox
Dropbox allows its customers to create, store and share content on the cloud. The main advantage lies in its ability to bring all content into a single space by creating a file on the computer. All these files are then kept in the cloud, making it accessible from anywhere.
Dropbox has been ranked as one of the most valuable start-ups in the world with a valuation of $10 billion.
4. Salesforce
Salesforce is the biggest cloud-based software company with a net worth of $17 billion. The company provides a complete software suite for customer service, marketing automation and application development.
5. Slack
Slack is a popular business communication platform specifically developed for companies that work with remote teams. It offers many features including chat rooms, direct messaging, document uploading etc. The company was estimated to be valued at $401 million in 2021.
Advantages And Disadvantages of SaaS
In a world where the IT sector is estimated to grow, it’s safe to say that there are more advantages of SaaS than disadvantages. Still, there are some points to consider about the risks involving SaaS if you plan to enter the market.
| Advantages | Disadvantages |
| Accessibility – All you need to access a SaaS application is a browser and an internet connection | Connectivity – The SaaS model operates through the web, making a strong internet connection crucial. |
| Scalability – SaaS providers offer a plethora of options to change subscriptions and add more subscription plans | Performance – SaaS providers have a reputation for being slow at times when there is a possibility of losing customers |
| Quick Setup – Unlike many business ventures, SaaS can be configured and deployment faster | Security – Experts fear the possibility of sensitive data being leaked |
| Easy upgrades – The customer doesn’t have to worry about maintenance and upgrades as it is automatically done by the service provider | Limited customization – Most SaaS applications offer little in customization choices |
Frequently Asked Questions
- How much does it cost to start a SaaS company?
According to Forbes, $6000 is adequate for the initial phases of SaaS. However, it can go up to $500,000 based on the size of the product. Although the cost may seem high to someone, the revenues are almost guaranteed to be higher.
- What is the benefit of SaaS over traditional software?
Traditional software is usually bought and stored on a personal computer, whereas SaaS is stored on the internet. Additionally, traditional software requires constant maintenance and updates. SaaS puts all these resource and maintenance responsibilities on the SaaS provider.
- Who owns the data stores in SaaS?
You will own all data of your business and the customers. This is done through a Service Level Agreement (SLA) where you agree with the SaaS vendor. Most SaaS vendors will also let you export your data and back it up locally any time you want.
- Is my data safe with SaaS?
Many SaaS providers use highly secured public cloud services to store all data, meaning the data will be safe. However, there is always the possibility of data being hacked.
Learn More about SaaS
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Conclusion
Following the three-step method of following the market trends will guarantee you a great SaaS product idea. Use the job search method and the app store method to further refine your research. Alternatively, you can also use existing novel product ideas to check for gaps in the existing market.
Creating a successful SaaS product may take some time, so be patient and make use of all the tools we have given you!
