Broad definition of SaaS
SaaS is an extremely broad term in the grand scheme of things. It quite literally refers to any piece of software used to provide a service to someone. These services can range from phone applications, online writing tools, digital marketplaces, communication platforms, and even design applications to help aid in creativity. There are so many services that are built around software, and so many audiences ready to tap into them. Among those audiences, everyday consumers are the primary target. This is what leads us into discussing our next business model.
Understanding the Business-to-Consumer Sales Model
Business-to-Consumer is a sales model that enforces the practice of businesses, or providers connecting directly with customers to perform transactions. Over the years since software has entered this sales model, people have found an array of ways to make something of value to sell using a variety of applications and ideas. A couple of examples of this would be how the application “Pandora” has been used to stream music, or how “Netflix” was formatted as a way to play movies pretty much anywhere. Services like the ones mentioned are meant to create convenience and make the lives of everyday people more satisfactory simply by optimizing the technology they have at their disposal. These types of services need transactions to sustain themselves, and must constantly adapt to retain customers who will continue to trust the brand.
How Income is Generated
People or corporations who dabble in the art of SaaS have found many ways to make money from their audience. Examples of this include:
• Subscriptions. They are popular among music and movie streaming services. A regular payment is made on a scheduled date to retain access to a service.
• Ad-based models are ones typically seen with video streaming services. These usually contain short commercials that cut into a viewing experience and help generate money for the business since corporations have to pay to have their own product advertised.
• Freemium is another practice used by businesses built around software. This involves offering a product for free but locking key features behind a paywall or subscription. These extra features aren't usually necessary but can often be convenient.
These are pretty much the most commonly accepted ways to make money using software, but in order to do that, a business needs to reel in an audience. Regulars who rely on their services day in and day out are the most important piece to an overall successful business formula, and without them, these business endeavors would amount to nothing.
How to Build an Audience
Building an audience is essentially the marketing aspect of creating a business. There are many different strategies to use that are really dependent on the type of revenue model you have set up for your software. Some commonly practiced ones include:
• Offer free trials. Free access to premium services included in the software, usually blocked behind paywalls, gives customers a chance to test the waters and familiarize themselves with a service.
• Create social media posts or blogs to advertise your product to a global audience.
• Making your software easy to access and navigate without confusion prevents consumers from becoming frustrated and dismissing your product.
It is important to create a way for an audience to directly engage with a service and provide feedback. Comment sections, FAQs, and regular updates are essential.
Of course, there are other miscellaneous methods for promoting your software, such as:
• Associating it with keywords to improve SEO.
• Building secure websites to house your content.
• Keeping up with trends to avoid falling behind the competition.
• Engaging with customer feedback.
It is important to create something unique by paying close attention to markets, understanding what consumers desire, and creating a personal experience that will keep them coming back to your service.
To get a deep dive into personalized content and how to implement it, check out Why Personalized Content Delivery Drives Results.
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