SaaS stands for ‘Software as a service’, and you most likely use it every day. It allows customers to access software licences for a subscription fee. Cloud-based services can work across many operating systems and devices, so they’re a popular choice in the current technology market.
Whether you’re offering marketing, accounting or another service, SaaS is a great way for you to build a future for your business. In a nutshell, SaaS subscriptions are when you create a regular service that you sell as a subscription instead of billing per job.
Regular, predictable and billable income
If you are an IT support company or a cybersecurity service, by using a SaaS subscription model you’re creating a regular, more predictable income. This makes it easier for you to manage your revenues. It’s simply the number of people on the service times by the cost.
In addition, because SaaS subscriptions are executed on a regular basis, you can be sure of your monthly takings. Plus it’s easier to bill customers. You can use automated billing programs or set up direct debits to make the billing process easier and therefore reduce back-office tasks.
You can plan your work more effectively
When you create a subscription service you’re creating a set amount of work to be completed within a set period of time. This makes it much easier for you to plan your working week and you can avoid schedules where you’re really busy or not busy at all.
Separating out your responsibilities allows you to focus more on each client’s work, this can then yield a higher standard that will satisfy clients more. You’ll also be able to standardise your resource allocation, meaning that all contracts have roughly the same costs and all clients are equally as profitable.
It’s easier to market SaaS subscriptions
Regardless of the service, you’re offering your clients, having a fixed price is easier to market and sell than services that can have fluctuating monthly costs. Therefore, leads feel more secure in their purchases.
In addition, you can offer clients deals for signing up for a year. This can often increase loyalty and improve conversions. However, don’t undersell your services over the year. If you give a discount, ensure it’s low (like 5%).
Check out these top SaaS industries for ideas
Cloud storage and backup
Most of us have a cloud storage account from one provider or another, but upgrading to a business model can do wonders for productivity. Cloud storage allows companies employees to work remotely and across many devices with ease. Their backup functions also reduce reliance on hard drives yet future-proofing files meaning access is simpler across multiple devices.
For collaborating on documents and projects from anywhere in the world, using a subscription service for document production is a smart business move. Helping to foster an atmosphere of teamwork, collaboration and cooperation, tools such as Slack and Teams offer people both inside and outside the company access to information, helping to manage workflows.
Email and communications
Communication is more important than ever. Whether you’re looking to output mass numbers of email marketing campaigns or collaborate via in-house group chats, finding a SaaS provider that meets communication needs is vital. They create a collaborative ecosystem for sending and receiving information, and often have integrated calendars and meeting planners to help schedule your day.
When it comes to sales, information is power. Integrating sales teams with a SaaS provider whose software can track sales and calculate commission is a cost-effective method to help incentivise staff and boost their sales. Sales SaaS can help to gather reliable analytics, allowing a company to adapt to the market in real-time.
If staff in business travel frequently for work, SaaS travel providers can offer flexible booking and expenses management. For instance, TravelPerk was named the world’s fastest-growing SaaS company in 2019 for its automation of spending limits and travel for businesses. These online booking systems help to manage plans wherever you are and contact travel agents. They’re fantastic money savers and an excellent investment.
Turning your talent into a SaaS subscription business is a great way to move any business forward. You don’t need to just create one subscription, you can actually develop three or four tiers (or levels) of service in order to attract clients and maximise revenues.
Head to our tech directory to discover all the latest SaaS providers. Or, head to our blog for up-to-date news and opinion.