A guide to SaaS product strategy and steps to achieve it

The digital landscape is progressing rapidly and organizations need a well defined Software as a Service (SaaS) strategy. The strategy is not about what the product or the service offers, but also about who it serves, and it compares with its peers in this competitive market. It is also about creating a roadmap that can guide the development, distribution, pricing and market acceptance of the product. A SaaS product strategy includes understanding customer requirements, identifying competition, creating a product vision and future development product plan. The strategy has to be dynamic and should be able to adapt to market changes and evolving customer requirements.

In this article, we will define what is a SaaS strategy and how to create it.
What Is A Software As A Service (SaaS)Strategy?
A Software as a Service (SaaS) strategy is an approach taken to deliver software applications to customers over the Internet. A SaaS strategy covers what the product is about, how it is to be marketed and sold, and who is the end user of this product or service. by hosting applications on the cloud. The SaaS provider assumes the responsibility for operations, management and maintenance of the software including the infrastructure.
The key components of SaaS strategy are:
• Cloud hosting — This refers to the software that is hosted on the cloud.
• Accessibility — Enables access for any customer having an internet connection.
• Subscription model — Customers can use the services by subscribing to the service.
• Multi-tenant architecture — Customers can access the service or the product though a single instance of the application.
• A SaaS strategy can provide customers with an efficient approach for using and paying for the services or a software product and offers multiple benefits such as rapid time-to-value, zero management overheads and transparent costs.
Steps To Create A Winning Software As A Service Strategy
• Find the issue to address: Finding the issue that needs to be addressed is the first step to developing a SaaS strategy. It is also not about finding any issue but rather that issue should be pervasive enough to create a gap that users are willing to pay for its solution. This needs an in-depth understanding of the target market and user requirements. By using market research, customer feedback and competitive analysis, companies can find the specific issues that their product can address or a requirement they can fulfill. A well-defined requirement or problem can give the SaaS product a purpose that can increase its chances of success in the market.
• Competitive advantage: Competitiveness gives an edge or an advantage that can clearly identify the distinguishing or uniqueness of the product. It can be some unique feature, better customer service, brand reputation or even cost effectiveness. This advantage should be able to offer value to the users and should ideally be difficult for the competitors to copy or replicate. By continuously monitoring the market and peers, companies can ensure that the product or service remains relevant. This competitive advantage can attract more customers and retain existing ones.
• Setting product vision and strategy: Setting a vision helps outline the objective behind the SaaS strategy, and should ideally align with the company’s mission. After setting the vision, a product strategy can be formulated. This details how to achieve the vision, and includes identifying the target market, understanding customer requirements, and planning to meet those needs. The strategy can include pricing models and competitive analysis to reach the market. A clear vision and a strong strategy can provide direction and can be critical for the success of the SaaS product.
• Identifying and understanding the target audience: Identifying the target audience, their requirement and how the product or service can address their needs involves market research. Segmentation of the target user base can provide a clear picture of whom the product is being built. It is also important to understand user behavior and preferences using surveys, interviews, and user testing. These insights can be the guiding factors for product development and ensure that the product features are in sync with user needs and requirements.
• Feature development: As a part of SaaS strategy, feature development translates the market requirements into product features. Here it is critical to give priority to those features that are based on user needs, impact on business, and the development effort. Companies can use Agile methodologies to develop, test, user feedback, iteration to finally release the product. The features can be scalable and flexible enough for future enhancements.

Final Words
A SaaS product strategy is a broad and an inclusive plan that suggests how a Software as a Service product can achieve its objectives. The strategy involves understanding the target audience, developing a product vision and strategy including the features as per user needs. SaaS based product development is an iterative process that is based on user feedback. A well thought out SaaS strategy can help companies achieve the goals by meeting user requirements in a competitive business landscape.