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With SaaS becoming a popular option for tech companies, SaaS product management has become critical for companies to manage their competitive edge. Here we have listed the best practices to help SaaS product managers achieve their desired goals.
Products tend to succeed thanks to a single core use case that mattered to usersOthman Laraki, Co-Founder, Mixer Labs
This quote aptly describes the pathway for success in the highly dynamic software industry. With the multitude of options available to users, any tech product/service needs to truly outshine others to gain the required traction. If you are looking to establish a software company that solves the users’ real problems, then opting for the SaaS route can be the best decision for you. But just the aspect that you have a good idea is not enough; the idea should be either something that can solve a new problem or something that can solve an already existing problem in a better way for being able to survive in this dynamic industry. This is where the importance of SaaS product management comes to the fore.
Saas: Way into the Future!
Software-as-a-service, i.e., SaaS, is a cloud-based service wherein users access the application through an internet browser instead of downloading software. SaaS’s ease and convenience, along with excellent growth potential for the service providers, is responsible for the exponential growth of this cloud technology. As per reports, the annual growth rate for the SaaS market has been pegged at 18% in 2020 and is expected to increase further.
SaaS has plenty of advantages to offer for the businesses, such as accessibility, compatibility, and operational management. This model requires fewer upfront costs than the traditional approach, which helps its availability to many other businesses. This is why almost 83% of work in companies will be completed on the cloud by 2020.
SaaS Product Management and Best Practices
At the heart of every product person, there’s a desire to make someone’s life easier or simpler. If we listen to the customer and give them what they need, they will reciprocate with love and loyalty to your brand.Francis Brown, Product Development Manager at Alaska Airlines
SaaS product managers have a very strenuous job. They are in a constant struggle to produce market differentiated products for their users. But what we do not know is that they are supposed to de-scope such products to a minimally viable version so that the product could be released into the market soon with updated features. Starting a SaaS business is a herculean task. It requires people to think, analyze and execute their ideas effectively and efficiently. It is certainly not a cakewalk to survive in this industry when almost 73% of the enterprises are thinking of shifting all their applications to the cloud.
If you are also struggling with getting complete control over your SaaS product management, then here are some of the best practices which will help you attain the desired objectives efficiently: –
1. Market Intelligence
Generally, product managers are more focused on traditional methods like making client calls, completing client meets, and detailed reports as a part of their market intelligence system to understand their market problems. On the other hand, SaaS product managers use online communications for improving the customer engagement and gaining the required information.
The time where ‘90% margin phrase’ was used is long gone. Now, the SaaS product managers are supposed to know the know-how of different types of costs. What they must know is the cost of acquiring new customers. The other points they are supposed to know are, the total cost to service a single customer, the needs of customers and the time to expect profits, target margin, expected payback period, what to do to account for new sales commissions, marketing ramp-up, and support.
3. Technical Development and Roadmap Planning
Product managers guide the setup of a SaaS company’s product, goals, strategy, and vision. Product managers fill the shoes of schedulers, prioritizes, chroniclers, and messengers when they work with the engineering teams. They are also supposed to ensure the incorporation of customer’s feedback and have an active say in the prioritization of projects.
4. Product and Feature Launches
The launch must be one of the most refreshing processes of the overall product management process. A launch timed well can help grab the attention of potential customers, and when timed with a proper marketing and PR team, it can help attract media, analyst firms, and a larger share of the market.
A SaaS business model has many advantages, which gives it an upper hand over the rest of its counterparts; therefore, it is a preferred model for businesses who are moving to the cloud to enjoy a stress-free life by renting services for reduced overheads. Therefore, if a low-overhead business with a recurring revenue model is what you are looking for, then the SaaS model is everything you need to give your attention to. But the aspect that holds critical importance is that to convert the thought into something tangible, you must be willing to embark on a path of sheer dedication, determination, and passion for achieving your goals.