3. SaaS Trends: What's Coming Up Ahead in 2020, AppSumo’s 2020 Software Trends for Freelancers, Marketers, and Agencies, How to identify a SaaS Opportunity - Kareem P. Jackson. It's true that a great SaaS success starts with $10M ARR however there are a lot of localised solutions that are valid just in one country. Although we now enjoy the fruits of the web, nothing beats good old … A SaaS marketer, on the other hand, specifically focuses on helping SaaS businesses with a proven model to grow by using specific marketing channels - SEO, content marketing, PPC, etc. Vertical SaaS offerings are also designed to have an onboarding flow that fits into the user organization’s day-to-day activities. While big tech companies have already captured most of the larger SaaS verticals, they’ve left many niche markets untapped, believing the returns won’t be lucrative enough to warrant the necessary investment of resources. This is why it’s important to have virtual phone numbers for each target market you’re looking to connect with. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. What are the top SaaS market trends that we can expect to see in 2020? EXPERTLY TRAINED, BATTLE-TESTED, ELITE DEVELOPERS READY TO START WORK TODAY. The untapped potential is still enormous, It’s a fact: there is still so much untapped potential for SaaS companies. They will have a deep understanding and insight for a software’s functionality and features. Vertical SaaS can often be even further customized to better fit a specific company’s needs — including needs that the company may not know it has. Your email address will not be published. One SaaS investor believes there’s so much potential, that there should be. Drawing lessons from AppFolio, we uncover viable niche SaaS ideas in the health and personal care spaces. A good example of this is how. VentureBeat Homepage.cls-1{fill:#ed2025;}.SiteLogo__v{fill:#ffffff;}. Because these products address a single function, they lack features that can give you a holistic view of a business. Surprised by this SaaS market trend? A Deep Dive into the SaaS Public Cloud Market Share. We’re fully in the era of service + tech. A few years ago, people didn’t want the jack of all trades, master of none product anymore. In sectors where businesses are heavily monitored, SaaS tools will provide features that optimize compliance and support. TaskRabbit is an example of a company that targeted a specific demographic within a geographic area. By now, we’re all well aware that SaaS buyers want to test out and play with products before they buy them. (This trend will continue, as we’ll see next.). Freemium plans and free trials let users experience the product, and they may later convert to a paying customer. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. SaaS companies in the $7.5M to $15M range are the fastest growing subset. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. Those first users started sharing the site with their friends, and through word of mouth the TaskRabbit brand was established. For example, Simplero makes it easy for coaches and course creators to create and sell programs in one place (instead of using 8 – 12 different software). Providing Customer Support for your SaaS Startup. Artificial intelligence, blockchain, API integrations, and mobile SaaS products are helping vertical SaaS businesses to dominate their respective niche markets. Software as a service is eating the world. Automate the Sales Motions to Get the Conversation Started. Inspiration for Marketers & Copywriters Ad Message Testing from Shopify Anti-Wrinkle Cream Ads Using The Same "Reduce Up to 56%" Hook Clio (http://www.goclio.com), one of the companies that I've invested in, is a great example of that strategy. is building additional functionality to help small teams make use of their website analytics. Ever heard of a little thing called micro-SaaS? Before the COVID-19 pandemic swept the globe, 2020 was shaping up to be a year of both strong growth and innovation. For these reasons (and because of the untapped potential), we’ll see even more of these companies emerge. Products of great value tend to sell themselves. Horizontal software is built to perform a specific business or departmental function and can be used by companies across various industries. No wonder that an increasing number of SaaS vendors, both legacy and start-ups, are coming up with vertical-specific solutions. The conversations are richer, and your advice or recommendations are more precise. AI and machine learning has even more practical applications. Lease-administration SaaS provider Lucernex, for example, helps companies comply with changing compliance regulations and has excellent customer support. The hottest SaaS opportunities are those that serve businesses and industries who are long overdue for innovation. We can help you with, 10. SaaS for Retail & E-commerce We build solutions that optimize marketing budgets, increase sales and product turnover, improve market understanding and increase income as the result B2B or B2C platforms for on or off line commerce Monitoring systems for managing products, prices, … They wanted multiple best-in-breed applications that they could integrate together. User organizations are free to discover the product on their own and the software manages check ins and followups. So expect to see a lot of changes in the marketing approach for companies that you were an early adopter of. Freemium plans and free trials let users experience the product, and they may later convert to a paying customer. Vertical software can leverage industry-specific jargon, best practices, and training, and it can deliver new features as market shifts occur, allowing businesses to continuously serve customers at the best of their ability. In 2020, even more entrepreneurs will realize that a SaaS company doesn’t have to have a billion dollar valuation or VC-backing in order to be a great business. and actually using these technologies in your daily life are two very different things. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. It can build specific features for one customer that can easily translate to the rest of the industry. 7. These B2B buyers still want to explore the product. The SaaS market size is expected to reach $157 billion in 2020, and is forecasted to gain $60 billion between the years 2019 and 2023. Artificial Intelligence. By simplifying the life of moms who were typically over-tasked and strapped on time, the company built incredible rapport with its initial users that paid dividends. Knowing the top use cases for AI and machine learning and actually using these technologies in your daily life are two very different things. Industry experts build these tools with nuanced knowledge on how to address various pain points with a unique feature set. The first of our most impactful trends in SaaS is of the autonomous, self … makes it easy for coaches and course creators to create and sell programs in one place (instead of using 8 – 12 different software). The future of SaaS is certainly heading towards vertical because more and more niche-specific software is being launched these days to serve the unique needs of the industry. Vertical SaaS systems, on the other hand, are configured to cater to all customer needs in their intended market niche, which made good business sense. In 2020, smart SaaS entrepreneurs will continue to explore the value of “all in one” especially for small businesses, when so many SaaS companies are still focused on building one tool that integrates with others. (more than they spend on laptops or computer for employees), and as more industries adopt SaaS, that number is rising. Although the effects of the virus have created uncertainty for global markets, it remains true that SaaS has created … 2020 SaaS Market Overview Read More » Zendesk, for example, started with a low-touch model and eventually added sales teams to further cater to its users. In 2020, we expect to see smaller businesses choosing simplicity and ease-of-use. While plenty of B2B employees and small business owners are utilizing SaaS solutions at work, very few are regularly using SaaS products that are powered by AI and machine learning. By niching, companies can narrow the playing field and target smaller markets. So when marketing vertical SaaS tools in niche markets, your job is much easier. As a vertical SaaS provider, you understand the world in which your customers operate. Top-notch APIs and integrations are a deciding factor for buyers. Feb 14, 2020. And with its higher prices and more willing customers, B2B SaaS is where you want to innovate. Type: SaaS/ Example: Lose It. Micro-SaaS platforms are products that cover a very narrow niche, allowing them to perform a very specific task – email marketing optimization, keyword analysis for SEO, etc. The article below is taken from SaaS Mag Issue 4. These companies can design for specific groups and serve them better than general players. Weight loss. All-in-one is making a comeback, for the sake of simplicity. So when marketing vertical SaaS tools in niche markets, your job is much easier. Ultimately, a Micro SaaS business comprises of a small team, with small costs, and a small dedicated user base. I’m … Having everything in one place means it’s easier to setup marketing automation. Just talk to your friends and family members with jobs. In essence, the spirit of SEO is to … Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. All-in-one is making a comeback, for the sake of simplicity. Salesforce was founded in 1999, and now it owns a whopping 19% of CRM market share despite having hundreds of competitors. AppFolio Shows That Niche SaaS Ideas Are Big Business. While running a startup often requires juggling many day-to-day tasks, its very easy to lose track of keeping the human element in your SaaS startup. In January of 2007, the first iPhone was released. Whereas, hospitality businesses with high turnover may need tools with highly streamlined and efficient on-boarding workflows. There isn’t only one good way to find product market fit. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. I’m a big believer that “all in one” is not the right product approach or marketing message for a lot of the companies that are using it. In March of 2009, Uber was launched. The more you know about it, the more you have talked to subject matter experts and long-term residents, the more you will be able to make a sound decision. didn’t build a business travel booking platform, even though it falls within the travel and expense category. Vertical-specific SaaS companies represent, the largest portion of the overall SaaS market. Whether it’s payment processing, website building, or restaurant managing software, there’s a SaaS tool out there that handles it. But in oversaturated markets, “all in one” is a real benefit. In 2020, even more entrepreneurs will innovate new ways to build scalable service companies inside of easy-to-use SaaS platforms. Mature companies will continue to fight in order to win the early majority and late majority buyers (the big chunk of B2B buyers between the early adopters and laggards). Let’s explore all of the key SaaS market trends for 2020: It’s a fact: there is still so much untapped potential for SaaS companies. Obi Omile is co-founder of theCut, a mobile barbering app in D.C. with over 1.8 million users. Plus, they’ll likely already have built-in audiences to market to. Ever heard the saying “the riches are in the niches?” With SaaS, that’s true. So when marketing vertical SaaS tools in niche markets, your job is much easier. By now, we’re all well aware that SaaS buyers want to test out and play with products before they buy them. This means finding influencers, bloggers, experts, thought-leaders within the SaaS niche. Profitable, established SaaS businesses will build additional features and pricing tiers that allow them to move upmarket and win bigger fish. Now, of course we have Doordash, Priv, and many others. The vendor may outline specific use cases, reducing the amount of work the user organization has to do when figuring out if the product is best for its needs. How to find product-market fit for SaaS ventures [TAM, SAM and SOM] Written by Stijn Hendrikse. A sales motion is the combination of … Sometimes, they are available on the website or can be downloaded as add-ons to existing bigger SaaS. The goal is to be better for some people, not everyone. 6 Lessons from SaaS Founders on Discovering Product Market Fit. , and these types of companies tend to experience faster growth than horizontal companies too. Don’t Forget Offline Marketing. A best-in-breed SaaS company isn’t trying to build a large platform that satisfies endless use cases. In case you’re unaware of this lingo: a vertical niche is intended for a specific type of business (such as appointment software for dental offices), while a horizontal niche is for a specific use case needed by any type of business (such as email marketing software). Since they don’t have to divert resources to actively manage customer relationships, vertical SaaS companies can invest those resources in further developing the product and managing hyper-unique client needs or situations. Small- and mid-market SaaS business in a highly competitive niche will tend to find itself under-funded and unable to compete with the development efforts and features of better-funded, VC-backed SaaS companies. This is simply a software as a service company that is owned and operated by a single person or a small team. Business owners and employees alike enjoy using tools that were designed specifically for the needs of their industry. When prospective customers see the SaaS tool in use by a similar business, they are more likely to try it themselves. Niching allows B2B SaaS companies to thrive in crowded markets. Companies spend an average of $2,884 per employee on SaaS (more than they spend on laptops or computer for employees), and as more industries adopt SaaS, that number is rising. These trends will affect how SaaS entrepreneurs build products that capitalize on untapped potential. There are more profitable SaaS companies run by small teams. These indirect network effects make vertical SaaS products more sticky and defensible from new market entrants. Half of all SaaS companies depend on user-based pricing for profit. Lose It is a goal-oriented weight-loss program that helps … Product-led growth marketing means using the product as a key acquisition channel. As we can see from this Google Trends report, search queries for “SaaS” are going up and up. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. There’s a consistent voice and value being presented, and that attracts the right customers. We can help you with SaaS development. Just talk to your friends and family members with jobs. There are thousands of small business SaaS companies that are bootstrapped and profitable. Direct integrations with popular industry tools, that allows customers to make better use of the product, so that 1500+ integrations are available to customers, 6. Uber was one of the first examples of people utilizing mobile technology to acquire a service. In 2020, going upmarket and gaining market share will be a huge SaaS industry trend. I have written about how to determine the size of SaaS markets. Total Addressable Market. SAAS (Software as a Service) niche marketing examples... advertising & rare copywriting examples from our giant swipe file archive. Learn about the next-gen architecture needed to unlock the true capabilities of AI and machine learning. In niche vertical markets, a low-touch sales strategy will have greater success than its non-vertical counterparts. The term ‘Micro SaaS’ was originally coined by Tyler Tringas when describing his business Storemapper, a few years back. Meanwhile, GoSquared is building additional functionality to help small teams make use of their website analytics. With all of this growth comes a few core trends: innovation in untapped markets, expansion in primed markets, and a striving for simplicity in mature markets experiencing overwhelm with their current SaaS solutions. Some companies start with low touch and progress to a higher touch model. Users love Veeva for being a great platform for recording conversations between marketing teams and health practitioners. , and businesses pay money to have their problems solved. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. Putting the market on an annual run rate in excess of $100 billion. Overall, the future of SaaS technology is looking bright. Entrepreneurs will take advantage of the application gap and create more products that rely on AI and machine learning for marketing personalization, security and fraud detection, healthcare automation and more. Companies spend an average of. These entrepreneurs will aim to build a company that covers salaries and expenses, provides a generous profit, and has the potential for a, 8. 4. Overdue B2B categories and niches will be disrupted, Do you know of an old-school industry that’s ready for innovation? When the product is custom-built for its users, it advertises itself to a certain degree, by having a built-in understanding of the user organization’s needs and pain points. There are certain SaaS products that are enormously expensive and complicated to build. Now, of course we have Doordash, Priv, and many others. So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets … Save my name, email, and website in this browser for the next time I comment. They don’t require licenses, which tend to make them more affordable and easier to implement. SaaS companies need to offer some or all of the following: As companies strive for efficiency and better data utilization and management, SaaS products will need to prioritize integrations and APIs or they will risk losing customers to competitors who do. Organic Search / SEO. More vertical-specific SaaS applications emerge to serve individual niches, All-in-one is making a comeback, for the sake of simplicity, Best-in-breed applications win in complex industries, Top-notch APIs and Zapier-integrations are a deciding factor for buyers, SaaS serves as a platform for buying services, There are more profitable SaaS companies run by small teams, Mature companies fight to win early and late majority buyers, Overdue B2B categories and niches will be disrupted, AI and machine learning has more practical applications, Product marketing spreads even to SaaS apps that are sold via demo, 1. . The corporate mobile market within SaaS is expected to be worth $7.4 billion by 2021. – The FreeeUp software was built so entrepreneurs and small business owners could get paired up with freelancers in the Philippines and US, and manage their payments. Your email address will not be published. While “all-in-one” products will make a comeback with some business types and use cases, there are plenty more where the “best-in-breed” trend will dominate. Whether a SaaS company considers itself “all in one” or “best of breed,” there are going to be plenty of reasons for integrations. Clio provides a SaaS pratice management solution for … Whether a SaaS company considers itself “all in one” or “best of breed,” there are going to be plenty of reasons for integrations. However, SaaS startups that built their market strategy around niche markets quickly made an impact. To satisfy this desire, more SaaS companies (that have inside sales teams) will create interactive product demos or small side-project apps to bring in curious leads and later convert them. Unlike its legacy software predecessors, Expensify focused on building the best expensing solution and on directly integrating with business travel booking platforms. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. To order your free copy, click here. So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets into one solution. While winning early and late majority buyers doesn’t always mean going upmarket, this is often the case, because bigger companies are harder to sell to. There’s a much higher level of participation, with account managers maintaining personal and frequent contact with customers. A Micro SaaS business or product focuses on solving a problem in a niche market, using minimal resource. It actually has value. Vertical-specific SaaS apps can be easier to market as well. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. ? When determining how to distribute SaaS products, providers take either a low-touch or a high-touch sales approach. For example, management software for gyms and salons will combine schedule management, payment processing, payroll, and marketing all in one place. Recent data from the Synergy Research Group reports software vendors generating revenue in excess of $23 billion for Q1 2019. – In addition to the robust social media scheduling features, SocialBee also allows you to purchase social media management service from their network. Software as a Service is the most mature public cloud market, showing healthy growth. One SaaS investor believes there’s so much potential, that there should be 100 times more SaaS companies than are currently on the market. The SaaS businesses that achieve a premium are almost always products that are prepared for growth at scale. Vertical SaaS providers are also well versed on the regulatory needs of the industry they target. Real Estate SaaS. What value comes from it? The real estate agents get notified of new showings with prospective renters via a mobile app. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. Content marketing is one of the best channels a SaaS company can work with because: You need a relatively low budget to get started You can drive hundreds of leads without spending a dollar You can establish yourself as an authority in your niche The product will incorporate features to streamline the reporting process and ensure that the business is abiding by all rules of law. 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