Cloud Topics

SaaS: Advantages of Software as a Service and Why You Should Choose it for Your Business

By Nicole Lim / June 25, 2020

Software-as-a-service (SaaS) is a way of delivering cloud-based applications and software. Instead of downloading an application to your computer, the provider hosts it for you, allowing you to access it via a web browser. SaaS works more like renting something rather than purchasing it outright. Instead of paying for the infrastructure and staff needed to manage software, you’re just paying for the software for a certain subscription period.

The SaaS market has exploded in popularity in recent years, with some experts expecting the market to be worth over $220 billion by 2022. SaaS is critical for small businesses, offering many vital functions that power the modern workplace, including email, calendar, billing, and payroll services. There are many successful SaaS companies, each providing products that are tailored to suit the changing needs of their customers.

While you may already know what SaaS stands for, you may not realize just how beneficial adopting a SaaS business model can be for your organization — and by extension, for your customers. You can start researching these benefits by browsing SaaS marketplaces, but it’s also important to learn more about how these applications are built to serve and support both your needs and empower you to better serve your customers. Here’s exactly what you need to know about the benefits of SaaS and why you should choose it for your organization.

Benefits for Businesses

From large enterprises to small teams, adopting a SaaS business model has many benefits for organizations of all sizes and ages:

Increased Automation Potential

SaaS systems are often automated, allowing them to run with minimal human assistance or even when your business is offline. Depending on the system, a SaaS platform can automate certain processes that are repetitive or time-consuming.

However, not all SaaS platforms can be automated, and successful implementation requires human support. For instance, you may have some type of chatbot or customer service support available on your website that can answer basic questions or resolve basic issues. When customers have more complicated queries and problems, you will still need a human representative to assist them.

Ability to Scale Faster

SaaS distribution solutions provide your business with a global reach. You don’t need to send salespeople all around the world to promote your business, find new untapped markets, or engage new clients.

Predictable Recurring Revenue

Many SaaS are paid for on a recurring basis or purchased as a subscription, giving you the benefit of consistent revenue from your customers. Because you have a potentially global customer base, you can do the same amount of maintenance or upgrade work for more clients, increasing your bottom line. Because multiple customers all pay for the same access to the platform, costs tend to be very predictable — for you as a provider, as well as for your customers. Customers get to enjoy split costs, while you only have to worry about maintaining and updating a single system, rather than each one of your customers’ systems.

More Efficient

Similarly, SaaS is more efficient than traditional software systems. They can be delivered, set up, and accessed by customers more quickly than a traditional system, which requires the program to be manually installed, configured, and adapted to meet that organization’s needs. Instead, SaaS is powered by cloud-computing, letting customers access their system as quickly as their internet connection allows — and providing a superior user experience.

Provides More Marketing Opportunities

Finally, success in the SaaS market provides more organic marketing opportunities for your business. This is a highly competitive space, and you need the right strategies to succeed with your B2B sales efforts. Standing out from the competition can be difficult, but as more people discover the benefits of your tools, they can vouch for your organization based on their own positive experiences. This type of word-of-mouth marketing can be incredibly powerful for your business and help your organization flourish.

Benefits for Customers

In addition to having direct, beneficial impacts on your organization, SaaS is advantageous for customers who patronize your business. By focusing on how to benefit your customers, you can work to build up your client base and maintain ongoing relationships with them — which is essential when selling pay-as-you-go software.

Some of the biggest benefits SaaS can have for your customers include:

Automatic Updates

Automatic updates are one of the biggest benefits of cloud-based programs, including SaaS. Unlike traditional software models, SaaS solutions can be updated automatically, rather than manually, because they are connected to the internet. Customers don’t have to bother with manual updates, saving them time and energy. Automatic updates also ensure that customers have access to the safest and most recent version of their platform.

Compatible

Because SaaS solutions are accessible via the internet, they can be used on laptops, desktop computers, tablets, smartphones, and other connected devices. With this heightened compatibility, your customers and their employees can more easily access the services they’re paying for. Many SaaS systems are also designed to integrate with other popular software solutions, making them compatible with the other tools your customers need to conduct their business.

Easy to Use

Typically, SaaS platforms are designed to be as simple and user-friendly as possible for customers. They have already been developed and come with best practices, standard operating procedures, and instructions for how to use them. Further, if anything goes wrong, a software update is confusing to your customers, or they have any questions, your customers can always reach out to your team for additional support and clarification.

Flexible Payment Options

Similar to other cloud services, businesses that sell SaaS solutions typically offer flexible payment options to their customers. This often includes charging customers based on their usage (similar to how utility bills are calculated) or charging a recurring monthly fee (such as with a subscription service). Either way, customers are not required to pay a large sum upfront for their software, nor do they have to spend money on services they aren’t actually using.

Personalization

Though SaaS can be sold as-is, these solutions can always be tailored to suit your customers’ specific needs. You may typically offer specific plans, software packages, or payment tiers, but you can better serve your clients if you’re able to personalize their solution to better fit their business. Essentially, personalized features and functionality ensure your customers are getting the SaaS solution they want.

SaaS systems have become a staple of the modern workplace, both for the businesses that sell them and the consumers who purchase them. As more organizations seek out SaaS solutions that work for their needs, even more businesses will come to realize exactly how beneficial SaaS can be.