How to Build Saas Product?

Table of content

Summary

Do you know? The annual growth rate of the SaaS market has increased from 18% to 18.7%, and it is expected to reach $908 billion in 2030. These statistics clearly show the future of SaaS (Software-as-a-Service).

But why? Businesses choose the SaaS model because it saves money, is easier to scale, and offers better security.

So, are you curious to know more about SaaS and how to build SaaS product? This article is here to help.

We’ll explore the following topics:

What is a SaaS Product?
Business Model of SaaS
What are the Types of SaaS products?
What are the Benefits of SaaS Product Development?
How to Build SaaS Product?
SaaS Industry Trends
Impact of Artificial Intelligence on SaaS Development
Low Code No Code Cloud Services
Problems for SaaS companies & Solutions

What is a SaaS Product?

A SaaS product is an app you can use online without downloading anything. You access it over the internet through a subscription, meaning you pay a monthly or yearly fee. The company behind the SaaS product handles everything—like hosting the app, managing the software, and keeping your data safe.

Business Model of SaaS

In simple terms, the SaaS business model lets you use software by paying for it on a subscription basis. Instead of buying software outright, you pay a fee to a third-party provider hosting everything. You can use the software without worrying about maintenance or infrastructure costs.

SaaS products are designed to solve specific problems.
For example, Zoom and Slack help remote workers connect easily through messaging and video calls, making work-from-home life much easier.
Since these products are cloud-based, you don’t need to download anything—they work in your web browser!
Choosing a SaaS business model for your startup is important because it reduces expensive infrastructure costs. This helps keep service prices lower, making your subscription more appealing to users.

What are the Types of SaaS products?

There are two main types of SaaS products:

Vertical SaaS: This type is more specialized and focuses on specific niches. Think of it like a specialized tool for a particular job.
Horizontal SaaS: This one is broader and serves a wider audience, providing general solutions that many people or businesses can use.

What are the Benefits of SaaS Product Development?

Software as a Service (SaaS) product development can benefit various industries in many ways, including:

Cost Savings: You save money because you don’t need to buy expensive software upfront. Instead, you pay as you go with a subscription.
Scalability: As your business grows, you can easily scale up your SaaS solution to meet your needs.
Accessibility: Since it’s cloud-based, you can access it anywhere worldwide, making it super convenient.
Customization: You can tailor SaaS applications to your business’s needs.
Security: SaaS products often have strong security measures to protect your data.
Updates: The SaaS provider handles updates and maintenance, so you don’t have to stress about IT issues.
Collaboration: SaaS solutions make it easy for teams to work together, no matter where they are.
Try Before You Buy: Many SaaS products offer a free trial period, so you can test it before committing.
ESG Reporting: Some SaaS platforms help companies track and report on sustainability efforts, making it easier to stay accountable.

How to Build SaaS Product?

Step 1: Find Your Designer

Good Design Matters!

Design and user experience (UX) are important for any SaaS product. Great design helps attract customers, keeps them engaged, and encourages them to stick around.

Where to Look?

We found our designer on Dribbble, a community where designers show off their work. You could also try Carbonmade or Behance, but Dribbble felt right.

Tip: To message designers on Dribbble, you must pay $20 for a yearly membership. Worth it!

Step 2: Create Product Requirements

The “Product requirements” phase is a bit daunting. It sounds too formal! This phase is the story of a product—what it is, how it works, and who it’s for. At Nodespace, we follow the below steps to create product requirements:

A simple product design overview
A list of must-have product features
A real-life example showing why our product is needed
A document about the problems we’re solving

We even used a worksheet based on the Hook Model, a great way to build products people love using.

Summary of Documents Created
Product Design Overview
Product Features
Real-Life Use Case
Pain Points & Solutions
User Stories
Hook Model Worksheet
Now that everything was set, we moved on to the designer’s deliverables!

Step 3: Design Deliverables

This phase takes much time on wireframes to nail down the user experience. After that, we moved on to the final designs. We’d share feedback until we both liked what we saw. In the designing phase, you can use tools like InVision to view designs and FreshBooks to handle invoices for each milestone.

Step 4: Building The Product

Building a software product can be challenging but not impossible. There are several things to do while building the SaaS product:

setting up the project architecture
creating the database with tables, schemas, and triggers
setting up webhooks for API calls
creating login credential validation, and so much more.

Step 5: Marketing & Sales

With the product ready, it was time to start selling! There’s a lot of info out there about SaaS marketing, but here’s a quick overview of what we prefer:

Registered a domain with GoDaddy
Used WPEngine to host my site
Set up branded emails with Google Apps
Created a WordPress landing page

SaaS Industry Trends

Impact of Artificial Intelligence in Saas Development

AI is the Future!

Artificial Intelligence (AI) is making SaaS products smarter. It helps tools read data, automate tasks, and make smart predictions, which means businesses can work better and faster.

Example: Salesforce uses AI to track customer interactions and improve services based on insights gathered from data.

Low Code No Code Cloud Services

Anyone Can Build!

In the past, creating apps was just for experts. Now, anyone can design and modify apps easily with no-code and low-code platforms. These platforms offer templates and simple drag-and-drop features, making it easier for businesses to develop valuable tools.

Problems for SaaS Companies & Solutions

Worried About Security?

Businesses want to keep their data safe from breaches and compliance issues since third-party providers manage their info.

How to Keep Customers?

Keeping current customers is cheaper than finding new ones! Having a solid customer retention strategy is key to long-term success.

Facing Technical Challenges?

Challenges like scalability and system uptime can affect user satisfaction. It’s crucial to have a strong technical infrastructure!

Need Help with Compliance?

SaaS apps must follow different laws and regulations depending on the region and industry.

Struggling with Pricing?

Many SaaS companies use subscription pricing, which can lead to billing headaches.

Nodespace’s Expertise in Building SaaS Applications

Let’s Elevate Your Business!

At Nodespace, we specialize in creating unique, secure, scalable SaaS solutions. Whether you want to build a new app or manage an existing one, we’re here to help! Over the years, we’ve developed various products for different industries, including CRM, ERP, and CMS systems. We aim to simplify management, streamline processes, and enhance user experience.

In addition, we have deep experience delivering SaaS products across multiple industries.

Need assistance to build a SaaS Product?

Contact our Experts to Build a Successful SaaS Product

FAQ'S

Why build a SaaS product?

Building a SaaS product provides a steady revenue stream through subscriptions, making it financially appealing. It offers users lower upfront costs and eliminates the need for hardware, enabling easy scalability and automatic updates. The remote access features also promote collaboration, catering to the growing demand for cloud-based solutions.

What is the cost of SaaS development?

Cost of SaaS Development: The cost of developing a SaaS product varies based on complexity, features, technology stack, and team size. It can range from $50,000 to $500,000 or more on average. The cost includes development, design, testing, deployment, and ongoing maintenance. Customizations, third-party integrations, and advanced features like AI or automation can increase the overall expense.

How to launch a SaaS product?

For a successful SaaS product launch, you need to follow below steps:

Market Research & Validation: Understand your target audience, assess demand, and validate your product idea.
Develop MVP (Minimum Viable Product): Build a basic version with core features to test the market and gather feedback.
Set Pricing & Business Model: Choose a pricing strategy (subscription-based, freemium, or tiered) and decide on payment systems.
Marketing & Outreach: Use digital marketing, social media, and SEO to generate awareness and attract early users.
Launch & Iterate: Roll out the product, monitor feedback, and continuously improve features and performance.