How to Establish SaaS Product Differentiation
There is a SaaS product for virtually everything today. Whether it is governments, businesses or consumers, everyone is leveraging SaaS products and solutions in some ways to get things done. SaaS product differentiation helps a business gain competitive advantage, increase adoption and growth. There is a SaaS product already in use or being conceptualised for nearly every process in the world. According to a report from Finances online, the SaaS market will reach a massive $623 billion by the year 2023 at a compound annual growth rate of 18%.
New SaaS products are being launched by companies everyday. The pandemic has accelerated the pace at which new SaaS products are built and launched by companies. There is an Uber for every conceivable service being developed. The increasing number of SaaS products and applications make positioning and differentiation more important than ever. For 89% of SaaS businesses, new customer acquisition is the top growth activity.
Here’s a look at the strategies to establish SaaS product differentiation and position your company for success:
1. Innovative Features
Does your product have innovative features for the users? Is it better than the existing ones they already use? Is it a new product that will transform their existing processes? Innovation in a product helps it beat its competitors.
Products that are built with innovative features are more likely to get noticed. It is a very strong way to differentiate against existing products in the market. When your product has features and capabilities, it would get the notice and appreciation of customers.
2. Design Solutions & User Experience
Design has become a quintessential tool for users today. Any customer experience is shaped by how well a product is designed. When a SaaS product helps a customer to solve his problems, navigate complex things and makes it simple for them, it creates a great user experience.
Is your user experience better than your competitors? How are first time users onboarded and likely to use your products? Product experience shapes its appeal to the users. A product that offers rich user experience is likely to be promoted by the users. It creates a differentiation with word of mouth marketing.
3. Articulate What Your Product is Replacing
SaaS products are typically replacing some existing process in the physical world. Articulating what is being replaced immediately helps your product position itself in the customer’s mind. For e.g. automated telecalling replaces sales agents for generating customer leads. Virtual accounting software replaces your day to day book-keeping services with online options.
When a product is positioned well, customers can see the tangible way it fits into their scheme of things. Good SaaS products help companies improve their capabilities by leveraging automation.
4. Complete Ecosystem
SaaS products are not sold in a silo. Most customers use best of the breed products for different functionalities in their business. When SaaS products provide integration capabilities and a complete ecosystem, it helps their positioning. For e.g. when customers use business process automation, they may like to integrate it with a payment gateway system, fetch documents from Google docs, or integrate it with their existing business applications.
The best SaaS products are able to integrate and cooperate with other applications. Whether it is a consumer or a business app, complete ecosystem and integrated experience has become a necessity.
5. Customer Success Team
How does your SaaS product support your customer? Is it reactive and responding only to customer complaints and grievances? Or is it proactive and helping your customers win and be successful.
Today, driving your customer’s success is the most effective strategy for differentiation. Why do users opt for your product? Unlock their hard pressing needs and see what it takes for your customers to be successful. How your product can solve issues for the customers that will make them successful.
Figure out ways to help your customers become more successful when they use your products. Doing this proactively will make customers feel appreciated and connect with your brand.
6. Figure of Merit
Figure of merit is a metric that is often used for comparing similar products. It can be used to communicate how well your product serves the customer. For e..g if a product saves 2 hours of manual time per day or makes a saving of 100$ per person per day. When a SaaS product has a tangible value proposition, it is easier to win the customers.
Your SaaS product can articulate its value proposition in tangible terms with some of the following metrics for customers:
Process Turnaround Time: How much time does your customer save?
Cost Savings: What are the cost savings?
Meeting Compliances and Regulatory needs: Is it helping them meet regulatory needs for business?Convenience Product: Does it create a better reputation for their business or make it easier for them?
Serving a Niche Segment: Is your product specifically driven to serve a niche segment or industry. For e.g. inventory for the Pharmaceutical industry with QR capabilities.
The figure of merit helps your product articulate its effectiveness in tangible terms for the customers. It can be used as a strong differentiation strategy for not only product positioning, but also guiding its development roadmap in line with customers’ aspirations.
7. A Worthy Cause
Is there a worthy cause behind your product or brand? A product or a brand can be differentiated when it articulates its purpose with clarity. Great brands always give people a cause to root for them. Think of the products that Apple launched and it always positioned itself with a cause, a story and a way to connect with its customers.
For e.g. when Apple launched Mac computer, it provided tools for their customers to do creative work and stand out from others. The customers took pride in being different and it started a loyal following for Apple.
The best brands find ways to establish and build bonds with their customers. They invest in connecting, understanding and serving their customers well.
Kreyon Systems is a leading SaaS development company. If you have any queries for us or need help in implementation of SaaS based products, please reach out to us.