As the CEO of a SaaS company, I’m always looking for ways to help my team set and achieve big goals. After all, it’s our job to make sure that our software products are successful! And to do that, we need to have a clear vision of what we want to achieve. That’s why I’ve put together this list of the top 5 goals for your SaaS company in 2022.
These are goals that will help you focus on the most important aspects of your business and ensure that you’re making progress toward your long-term objectives. I encourage you to take some time to review these goals and think about how you can best accomplish them within your own organization. Remember, setting ambitious yet achievable targets is essential for any successful business!
What is a SaaS Company?
A software-as-a-service company provides software on a subscription basis and is typically hosted remotely, accessed through the internet.
Customers can pay for access to the software on a monthly or annual basis, and they can usually cancel their subscription at any time.
The software is usually updated regularly by the company, and customers always have access to the latest version.
SaaS businesses are able to tap into a global market without any restrictions and can scale their operations without having to worry about increasing product delivery costs. This makes SaaS an attractive option for many businesses.
Companies that provide software as a service (SaaS) will continue to offer both hosting and support for it.
SaaS companies have an edge over traditional companies when it comes to product control. This gives them better security, faster updates, and a superior user experience.
Many of these services provide transparent pricing.
SaaS is the fastest-growing segment of the software industry, with sales exceeding $104.7 billion.
Cloud technology spending is up by 50% in just two years, and businesses are relying more on them.
But with so many opportunities for expansion, how reliable is SaaS? Let’s take a real-world scenario as an example.
On Jan. 1, 2021, the messaging service Slack went down for 3 hours, leaving 12 million users unable to communicate with their co-workers and customers.
Twitter users were in an uproar, the media was in a tizzy, and meme-generators everywhere were working overtime.
If we didn’t have to rely on software to get through the day, we wouldn’t be in this mess. This shows just how reliant we are on SaaS technology and that it’s not going anywhere any time soon. It’s important to understand the structure and big picture of this phenomenon.
In this blog, we’ll look at SaaS technology, what it is, what it’s selling, and how to follow its business model. Then, see how 10 of the most successful companies have followed this business model.
What is the SaaS Business Model?
SaaS businesses are built in three phases: setup, growth, and stabilization. Let’s take a closer look at each stage.
The startup phase of a SaaS company is where the foundation is laid. This is where founders determine the products they want to develop, identify their markets, and create their products.
In this phase, the company will put together a sales and marketing strategy for the product, consider options to provide customer service, and organize its finances.
After the product is released, the company hopes to see a lot of growth in sales.
Because most SaaS companies market their products to a global audience, they can expect to see a sudden spike in demand from customers, creating an immediate need for customer service, sales, and marketing teams. The company must act fast to take advantage of the opportune moment to build brand loyalty.
This growth will be accompanied by increased revenues. By re-investing the profits into developing more products, companies have the finances necessary to meet the growing demand for support and customer service.
As the company continues to gain more customers, it will begin to bring in more revenue.
Since the company has already acquired a decent number of customers, they don’t have to take on more overhead, which saves them money.
That’s because, at this stage, the company has already invested in marketing automation, customer services software, and product upgrades.
As SaaS businesses grow, they need to keep up with the demands of their customers, provide a delightful experience, and plan for an eventual exit.
Now that we’ve covered the basics of the SaaS business model, let’s take a look at a few of the most popular examples.
What are SaaS Products?
Software as a Service (SaaS) is a type of software that is provided by a service provider and made available to customers through the Internet. Instead of downloading and installing the app, users can access the product from a browser.
The SaaS company then updates and manages its software based on the users’ feedback.
On the other hand, hosted software is installed on your workplace’s own servers and requires users to download it onto their computers. Some popular examples of hosted software are Microsoft Word, QuickBooks, and, of course, the CDs you used to get from America Online.
In today’s digital age, some of these companies have begun offering Software as a Service (SaaS) versions for their hosted software.
A company’s products often determine whether they’re a business-to-business (B2B) or a business-to-consumer (B2C) company.
B2B SaaS is made for businesses. The needs of these businesses are usually specific to owners and management. Some examples of B2B companies are HubSpot, Asana, and Google.
B2C SaaS is made for personal use. These apps are often for entertainment, personal finance, and organization. Some examples of B2C companies are networking site LinkedIn, credit report service Experian, and dating site Bumble.
The Best SaaS Companies
SaaS vendors that sell cloud-based software solutions to other companies are called B2B or business-to-business companies.
Businesses use these tools to automate their marketing efforts, increase sales, provide better service, and streamline their operations.
Because their products are geared towards helping companies reach specific business goals, many B2B SaaS companies have a vested interest in their customers’ overall satisfaction.
When your customers achieve success with your product, they’re much more likely to continue using your service and become brand evangelists who tell their friends, family, and colleagues about you.
This benefits both the customer and the company.
Some software companies have stood out this year, which is tough to do in their particular market.
We’ve compiled a list of the fastest-growing, strongest, and biggest B2B SaaS companies that you can learn from.
Strongest SaaS Companies
Online survey creator and data analyzer, Survey Monkey, was recognized as the 2021 winter momentum leader.
Hubspot is an inbound marketing and sales software with tools for customer relationship management, social media, content creation, analytics, and search engine optimization. In 2020, it was named one of the 100 highest satisfaction products by G2.
Microsoft has over 100 different products that utilize cloud computing. Their popular presentation program, PowerPoint, was recognized as one of the most popular software products in 2020.
Asana is a task management software that assists teams in tracking, managing, and connecting on tasks. Asana’s market capitalization is $5.62 billion as of 2021.
5. SAP Concur
Travel planning, expense tracking, and invoicing can all be done through SAP Concur, making life a lot easier for managers and employees alike. The market cap for this software giant is currently $157 billion.
ProofHub is a project management and team collaboration tool that allows teams to keep track of everything in one place. In 2021, ProofHub was recognized as one of the top three project management systems and is used by over 85,000 teams worldwide.
Mailchimp is a marketing automation software company that offers three primary services. Their main product is an email marketing tool that allows you to create and schedule emails.
The $6 billion company Canva is a design platform that lets users create beautiful graphics using a simple drag and drop interface.
Shopify is an e-commerce business that owns four products. Shopify, the online store platform and retail POS was ranked as one of the Top 50 Small Business Products in 2020.
Slack owns three products. Its main product is a collaboration and chat tool that allows for internal messaging, video conferencing, and productivity.
With 50 different software products in digital marketing, publishing, and print media, it’s no surprise that Adobe is a powerhouse in the software industry.
Data visualization platform Snowflake had a 273% growth in 2020.
A 194% growth in 2020 helped the monitoring software OpsGenie become one of the leading platforms for alerting and responding to IT and DevOps issues.
14. Google Cloud Platform
Google’s Cloud platform provides a place for people or businesses to host their apps online. In 2020, the platform saw 108% growth.
Splunk offers software for searching, monitoring, and analyzing machine-generated data. The company experienced growth of over 100 percent in 2020.
KnowBe4 provides security awareness training on solving IT security problems such as spear phishing, engineering, and ransomware attacks. KnowBe4 had an 89% growth in one year.
Looker offers business intelligence software that lets users explore, analyze, and share real-time business analytics. It had an 86% growth in 2020.
Apple-focused IT solutions provider Jamf experienced 82% growth in 12 months.
Envoy streamlines the workplace with software that enables visitor management, reservations, booking and more. The company had an 80% growth in 2020.
Freshservice is the customer service software of Freshworks. It offers helpdesk software that assists customer service teams with their daily functions. Freshservice had a 77% growth in the past 12 months.
Zoom became a household name during the pandemic as this video conferencing tool connected people remotely. In 2020, Zoom had a 76% growth rate.
Biggest SaaS Companies
There are 58 different cloud computing products that fall under Salesforce. The company’s market cap is $207.35 billion.
Enterprise automation and workflow solutions company, ServiceNow, streamlines work and communication throughout an organization. Its market cap is $108.13 billion.
Square is a credit card processing app that lets businesses easily accept credit payments without a cash register. With Square, any phone, computer, or tablet transforms into a credit card processor. The market cap for Square is $99.17 billion.
25. Atlassian Corporation
Atlassian is a software company that provides products like JIRA and Confluence that aim to improve development, teamwork, and project planning. The market cap of Atlassian Corporation is $56.57 billion.
Workday is a tool for HR teams for financial management and personnel management. The market capitalization for Workday is $54.85 billion.
Veeva is a technology company that provides cloud-based software solutions for companies in the pharmaceuticals and life science sectors. Its market cap is $42.41 billion.
Paycom is a software company that assists companies in managing and optimizing their payroll processes.Its market capitalization is $22.63 billion.
The comms platform Twilio allows companies to connect with both their internal employees as well as external customers. Its market cap is $54.48 billion.
30. Ring Central
Ring Central is another comms provider that offers messaging and video solutions that help businesses communicate internally. It experienced a 73% growth with a market cap of $33.14 billion.
Okta integrates applications into one interface, making each app accessible through one secure location. The market cap of Okta is $33.46 billion.
Top B2C SaaS Companies
A cloud-based storage service, Dropbox has four different products, which altogether are worth $9.55 billion.
The web development tool, Wix, is targeted toward users who have little to no experience with building websites. Its market cap is $13.81 billion.
34. Elastic NV
A data analysis platform that enables users to explore data in different ways, Elastic NV has a market cap of $13.41 billion.
35. New Relic
New Relic provides analytics software to companies so that they can monitor their apps in real-time. Its current market capitalization is $4.73 billion.
Low code app maker, Appian, is software for automating business processes and casework. Its market cap is $15.11 billion.
PluralSight is a platform that provides online courses for a variety of skills, including web development, software testing, and data science. Its market cap is $3.02 billion.
How to Set Goals for Your SaaS Company
These companies have set the standard for what successful Saas businesses look like.
As a service professional or entrepreneur, it is important to study the structure of successful SaaS organizations in order to understand how to grow your own company.
There are fundamental differences between the business models of business-to-business (B2B) and business-to-consumer (B2C) companies. Understanding these differences can help you set realistic goals for your startup.
By looking at these success stories, you can learn how to grow your own company.
The accomplishments of the businesses we featured should motivate you to set business goals, such as improving customer service and gaining loyal customers. Doing so can help you achieve similar results for your SaaS company in 2022.
As the old saying goes, the customer is always right. If you want to grow your SaaS company, you need to provide excellent customer service.
By providing great customer service, you’ll earn customer loyalty and satisfaction, which will lead to more growth for your business. So what are you waiting for? Get started today!