Has your revenue for your SaaS product become stagnant? Many factors influence the success of your software, but it often comes down to whether you give your customers enough value for their money. Once you examine the benefits and exponential growth potential that you can provide to their organizations, you’re one step closer to growing your SaaS revenue. Here are four product strategy questions that you need to ask yourself in order to achieve your goal.
1) What Value are You Offering?
You have to do more than simply take your on-premises software to the cloud. Customers expect more than just the benefit of easy deployment and a subscription plan. Too many organizations believe that having a SaaS version of their previous on-premises solution will be enough. That’s the wrong assumption.
With the evolution of SaaS in the past 15 years, the norms have changed. Challenge yourself on what advantages your product offers compared to what it did on-premises. More importantly, does this differentiation stack up to what your competition has to offer? If the answer is no, then it’s time to go back to the drawing board with your product strategy.
2) Are Your SaaS Products Sticky / Made to Stick?
What’s the answer if you challenge your products and services on this simple concept? What’s the sticky element in your solution that triggers users to keep coming back for more value?
One of the most important metrics in growing your SaaS product is your churn rate. The ideal percentage varies based on your market, but the typical churn rate that’s considered “good” is under 10 percent. If you have a lot of paying customers canceling their subscriptions, then you can’t get the traction necessary to succeed with your SaaS.
By challenging what parts of your product are sticky, and seeing if you can do even better, you can build up your user base and achieve your revenue goals.
3) How Does Your Solution Give People Even More Control and Make Them a Better Version of Themselves?
Next generation technology, such as AI, Machine learning, and the abundance of computing power combined with massive data sets, has the power to giving control back to people and enabling them to deliver far greater value.
And this goes beyond automation and efficiency. Think augmentation. Think about how your solution can become an intelligent peer or coach to your users. Do you know or realize how this would give your customers an edge?
Envision the potential for your customers if they could move the impact of ‘the average employee’ up by suggestions, recommendations and guidance that come out of your software.
4) Is the Value of Your Solution Aimed at Better / More Output or Better Outcomes?
You will boost your success if you shift towards addressing the key outcomes of your customers. This is where the real value kicks in. With today’s technology, you can impact outcomes, rather than just outputs.
Building off of your on-premises software and turning it into a stellar SaaS product is a challenge. Once you understand where your customers are coming from, what they’re actually looking to get out of your software, and the ways that you can use the cloud to deliver more benefits, you put yourself in a good position to build a thriving SaaS application.
If you want to get some outside-in perspective to get started, here’s where my workshop approach can help to inspire your business future.