Victor Fredung is the CEO of Shufti Pro, an innovator in identity verification solutions.
There is a worldwide surge in demand for cloud-computing and user-friendly software solutions that facilitate daily productivity. A global tech revolution is being led by advancements in fields such as artificial intelligence and machine learning. Software development is now reasonably sophisticated and has managed to keep up with this revolution.
The current state of the software-as-a-service market is one of growth and innovation. The global SaaS market is expected to grow from $237.48 billion in 2022 to $908.21 billion by 2030, with a compound annual growth rate of 18.7% during that time.
The development of niche-specific SaaS products has facilitated this sector’s growth by targeting specific problems and providing effective solutions for them. However, there is an influx of SaaS products on the market. This influx gives businesses many options but makes it harder for them to choose the best software from the countless products available.
So, how can SaaS companies successfully differentiate themselves in such a crowded marketplace and gain an advantage over their competitors?
Providing Exceptional Customer Service
Low-code SaaS platforms have allowed almost anyone to develop a SaaS solution. This is not necessarily a negative thing, but when a SaaS provider lacks technical skills, that can significantly impact its customers. A SaaS product should efficiently perform its task with minimal human effort.
Now, maintaining technical expertise and backing your product with a technologically sufficient infrastructure are two different things. You need to keep your product’s technical infrastructure up to date to meet customer demands.
You also need to ensure that, along with a robust technology infrastructure, you provide efficient customer support. Ideally, your customer support system should include multiple channels and cover customers worldwide. Proactive outreach methods and feedback loops allow you to provide your customers with the best service possible.
Last but not least, consider utilizing users’ behavioral data to improve your services.
Creating Personalized Solutions: Finding Your Niche
Vertical SaaS products that aim to solve industry-specific problems are now popular in healthcare, finance and insurance. These products differ from horizontal SaaS products, providing companies with solutions as field experts.
Further down the line, micro-SaaS products target specific use cases. Companies identify a single problem and develop a single SaaS product as a solution. Micro-SaaS products face relatively low competition as their markets are less saturated.
CRM solutions are products that come under the category of vertical SaaS, as they are solutions designed specifically for customer relations management. Salesforce is an example of vertical SaaS. On the other hand, SaaS products like Clearbit fall under the category of micro-SaaS. The primary purpose of such products is to complement existing business processes.
Many businesses now prefer customized solutions instead of adopting a whole suite of solutions for a single problem.
Marketing Your SaaS Product Effectively
It’s become increasingly difficult for SaaS providers to survive in today’s market. While developing a top-tier solution is crucial, so is standing out from the sea of SaaS products.
According to Market Pro, content marketing effectively communicates your SaaS product’s message to your target audience. Building a strong market presence, creating awareness about your product and building a healthy relationship with your target audience improve your chances of success.
As the CEO of Shufti Pro, effective marketing has proved beneficial for us. An educational approach is generally used in an effective content marketing strategy. The sole purpose of this method is to educate individuals facing problems about the solutions your company specializes in. Mediums like blogs, articles, social media posts and guides written by field experts are an exceptional way for companies looking to communicate their products to their target audience.
To effectively market your SaaS product, you need to specify your target audience and develop a solid marketing strategy. A good marketing strategy uses a variety of mediums and resonates with the audience. This not only educates your audience about your product but also positions your brand among people with similar interests, giving you a chance to network and connect with like-minded individuals.
Carefully Incorporating AI Into Your System
The SaaS market is growing alongside global technological advancements. In my opinion, SaaS and AI are the most disruptive technologies of our time. SaaS products are now integrating with the latest AI technologies, creating a unique blend that has given SaaS products a mind of their own. AI integration enables SaaS products to automate their processes and predict future patterns.
However, you need a practical business model or blueprint to successfully integrate AI. Since AI is constantly developing, its maturation will be slow. You should avoid blindly incorporating AI into your work processes and instead focus on how you can use AI to complement your existing business processes.
Meeting Investor Expectations
SaaS products need capital to survive in the current market. Venture capitalists that invest in SaaS products are looking for providers that target a strong industry and are well-positioned to grow.
To meet these expectations of industries and investors, such as the Rule of 40, you need an effective business model that can get you market validation and establish a strong presence. Work on improving your customer retention, as well, as strong retention positions your product as a trusted entity in the market.
In every industry, there is space for top-notch software. Focusing on a specific industry or niche and effectively marketing your products will help you gain an advantage over competitors. Your company can also gain recognition as a leader in its industry by offering exceptional customer support.
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