Do you know of an old-school industry that’s ready for innovation? After a few conversations with entrepreneur friends, I had the idea to compile their experiences into a blog post. 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. – Showdigs is a web app that lets busy property managers request that nearby real estate agents handle vacancy showings for them. – 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. When determining how to distribute SaaS products, providers take either a low-touch or a high-touch sales approach. What are the top SaaS market trends that we can expect to see in 2020? Inspiration for Marketers & Copywriters Ad Message Testing from Shopify Anti-Wrinkle Cream Ads Using The Same "Reduce Up to 56%" Hook In March of 2009, Uber was launched. Before the COVID-19 pandemic swept the globe, 2020 was shaping up to be a year of both strong growth and innovation. Whether it’s payment processing, website building, or restaurant managing software, there’s a SaaS tool out there that handles it. Whether a SaaS company considers itself “all in one” or “best of breed,” there are going to be plenty of reasons for integrations. I have written about how to determine the size of SaaS markets. Half of all SaaS companies depend on user-based pricing for profit. Why focus on targeting a niche market for Software as a Service (SaaS)? Just talk to your friends and family members with jobs. 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. 488 East Winchester St., Suite 450 Murray, Utah 84107, SaaS industry growth isn’t slowing. Total Addressable Market. They wanted multiple best-in-breed applications that they could integrate together. 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. Your email address will not be published. You won’t have to chat for too long to find processes, tasks, and even entire roles that are manual, time-consuming, or otherwise unoptimized. Similarly, there are many SaaS products that are being built in order to acquire a service. – In addition to the robust social media scheduling features, SocialBee also allows you to purchase social media management service from their network. To make money online it is essential that you first identify the current untouched niche markets. A good example of this is how Expensify didn’t build a business travel booking platform, even though it falls within the travel and expense category. The real estate agents get notified of new showings with prospective renters via a mobile app. This is also how you think about nailing your first niche, or winning a certain part of the market without a lot of competition. Lease-administration SaaS provider Lucernex, for example, helps companies comply with changing compliance regulations and has excellent customer support. VentureBeat Homepage.cls-1{fill:#ed2025;}.SiteLogo__v{fill:#ffffff;}. Users love Veeva for being a great platform for recording conversations between marketing teams and health practitioners. B2B SaaS: Your Guide to Pricing, Sales, and Market Opportunities You don’t have to hit the billionaire club to have a successful, highly profitable SaaS product. Enterprises will prioritize ways to gain a cutting edge, while expecting user-friendly product design. , and businesses pay money to have their problems solved. 5. So when marketing vertical SaaS tools in niche markets, your job is much easier. 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. 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, … 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 » Horizontal software is built to perform a specific business or departmental function and can be used by companies across various industries. Uber was one of the first examples of people utilizing mobile technology to acquire a service. There is a rising need for API connections. Because these products address a single function, they lack features that can give you a holistic view of a business. In niche vertical markets, a low-touch sales strategy will have greater success than its non-vertical counterparts. Customer support that understands industry-specific needs, language, laws, and norms can save companies time, effort, and money. (more than they spend on laptops or computer for employees), and as more industries adopt SaaS, that number is rising. As products develop and become more complex, the need for a human sales person may become more prevalent. 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. Especially for solopreneurs or small businesses, simplicity is a huge win. Plus, they’ll likely already have built-in audiences to market to. 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. 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. Putting the market on an annual run rate in excess of $100 billion. So expect to see a lot of changes in the marketing approach for companies that you were an early adopter of. 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. In January of 2007, the first iPhone was released. 4. Feb 14, 2020. Fintech and healthcare companies will require more secure and reliable data storage systems. Here are some examples: Services are a great, reliable business model. Mind that not only global SaaS products can be profitable. More vertical-specific SaaS applications emerge, Ever heard the saying “the riches are in the niches?” With SaaS, that’s true. Zendesk, for example, started with a low-touch model and eventually added sales teams to further cater to its users. In 2020, even more entrepreneurs will innovate new ways to build scalable service companies inside of easy-to-use SaaS platforms. The market for “vertical SaaS” is particularly strong, tripling in the last decade. 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). . Knowing the top use cases for AI and machine learning and actually using these technologies in your daily life are two very different things. However, SaaS startups that built their market strategy around niche markets quickly made an impact. So when marketing vertical SaaS tools in niche markets, your job is much easier. 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. They don’t require licenses, which tend to make them more affordable and easier to implement. 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. The corporate mobile market within SaaS is expected to be worth $7.4 billion by 2021. This means finding influencers, bloggers, experts, thought-leaders within the SaaS niche. Industry experts build these tools with nuanced knowledge on how to address various pain points with a unique feature set. 2. Vertical SaaS offerings provide a full suite of functions to companies in a specific sector, allowing user companies to quickly scale and operate more efficiently. 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. The goal is to be better for some people, not everyone. Weight loss. 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. Having everything in one place means it’s easier to setup marketing automation. In 2019 and 2020, some of the top opportunities for disruption are in business travel software, property management software, real estate software, OKR and KPI tracking, and other underserved, overly manual industries such as early education and medical. By now, we’re all well aware that SaaS buyers want to test out and play with products before they buy them. Which makes it easier for vertical SaaS solutions to reach potential new users. Ever heard the saying “the riches are in the niches?” With SaaS, that’s true. You won’t have to chat for too long to find processes, tasks, and even entire roles that are manual, time-consuming, or otherwise unoptimized. Your email address will not be published. In low-touch sales, there’s very little human interaction with the user organization. For example, management software for gyms and salons will combine schedule management, payment processing, payroll, and marketing all in one place. There are certain SaaS products that are enormously expensive and complicated to build. 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. 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. It can build specific features for one customer that can easily translate to the rest of the industry. The market for “vertical SaaS” is particularly strong, tripling in the last decade. There are more profitable SaaS companies run by small teams. We can help you with SaaS development. Artificial Intelligence. A Deep Dive into the SaaS Public Cloud Market Share. Check out these lessons from 6 successful SaaS entrepreneurs on how they found their own product market fit: 1. The first of our most impactful trends in SaaS is of the autonomous, self … On the other hand, in high-touch sales, a human helps the user organization throughout the entire buying and on-boarding process. Vertical SaaS providers are also well versed on the regulatory needs of the industry they target. A best-in-breed SaaS company isn’t trying to build a large platform that satisfies endless use cases. Some companies start with low touch and progress to a higher touch model. 'Niche' doesn't have to mean 'small', since there are many niches or verticals that represent $1B+ markets. So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets … 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. Vertical-specific SaaS apps can be easier to market as well. These entrepreneurs will aim to build a company that covers salaries and expenses, provides a generous profit, and has the potential for a favorable exit. I’m … Today’s episode features a fireside chat between Margie Ramos, sales and marketing coordinator at Block 64, and Jono Landon, founder and CEO of Hubbli. In 2020, we expect to see smaller businesses choosing simplicity and ease-of-use. Type: SaaS/ Example: Lose It. Providing Customer Support for your SaaS Startup. Now, of course we have Doordash, Priv, and many others. In sectors where businesses are heavily monitored, SaaS tools will provide features that optimize compliance and support. Obi Omile is co-founder of theCut, a mobile barbering app in D.C. with over 1.8 million users. Some of the best SaaS marketers also double as SaaS consultants, having experience with both product and marketing. To order your free copy, click here. How to find product-market fit for SaaS ventures [TAM, SAM and SOM] Written by Stijn Hendrikse. A Micro SaaS business or product focuses on solving a problem in a niche market, using minimal resource. Vertical SaaS offerings are also designed to have an onboarding flow that fits into the user organization’s day-to-day activities. Product marketing spreads even to SaaS apps that are sold via demo. Those first users started sharing the site with their friends, and through word of mouth the TaskRabbit brand was established. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. There’s a consistent voice and value being presented, and that attracts the right customers. They have more requirements and more decision makers, and they are less likely to take a chance on a younger company. Whatever market you choose for your business, make sure you select it with confidence and the numbers to back it up. . All-in-one is making a comeback, for the sake of simplicity. Drawing lessons from AppFolio, we uncover viable niche SaaS ideas in the health and personal care spaces. Real Estate SaaS. In these cases, we’ll see more companies emerge with the goal of working far better than legacy competitors—but for one core use case. For these reasons (and because of the untapped potential), we’ll see even more of these companies emerge. 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. Vertical-specific SaaS companies represent, the largest portion of the overall SaaS market. NOV 12, 2019. by Trung Phan. didn’t build a business travel booking platform, even though it falls within the travel and expense category. As the SaaS market grows, the trends will change. All-in-one is making a comeback, for the sake of simplicity. They will have a deep understanding and insight for a software’s functionality and features. 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