How to build a SaaS product

Picture a world where your software doesn't just sit in the background of your browser. A world where your software evolves based on user needs and becomes a top product in the market realities. That's a world where the SaaS industry comes into play.

Creating a SaaS product is like having a digital vending machine that keeps giving you something valuable all the time. We will not only explain how to build a SaaS product to you but also profit from it. Removing the need for hefty up-front costs and complex IT infrastructure, SaaS features have made it possible for businesses of all sizes to extend their powerful software solutions. This allows budget optimization by using flexible pricing models and staying ahead with innovations by accessing the latest technology.

We know you're willing to build a SaaS product that will blow everyone's minds with its amazing features like hyper-personalization and real-time analytics. Wait, how to do saas? Where to begin with?

What is a SaaS product

Software as a service (SaaS) is a cloud-based model in which software is furnished to users over the internet. Instead of having software installed on your computer, you just access it through a web browser. Maintenance, updating, and security concerns are dealt with by the provider of the software.

Do you remember when you had to buy a DVD disk just to watch a movie? Now, with software as a service (SaaS) like Netflix, you can access it without any hassle. Instead of being set to some kind of physical space, it is just based on the cloud. By the way, you can even access it from any device with a web browser.

Now, we would like to provide you with simple examples of software as a service. Do you remember the name of the tool you use to keep track of all your responsibilities (because being an adult is hard)? Otherwise, the name of that graphic design software that turns your boring presentations into “Wow, how did you do that?” even if your content isn’t about what people would like to think about every day. Those are both traditional SaaS solutions. They let you keep making your work or daily things way better, no matter what your device or where you are.

As you can see, the SaaS based product is all about being able to adapt to your conditions. To get more people to use your app, you can start with a free version. Yet, if someone wants more features, you can offer them a paid version with extra elements. You want to give your users the best software to solve their problems, don’t you? They get what they want = you get paid. Therein hides the standout of the software as a service model. It brings long-term relationships with your customers in 92%, and growth of the business since every party will be interested in the continuation.

The secret weapon behind any SaaS product is the ability to change the software industry.

What is the difference between SaaS and traditional software?

Software as a Service means rather than a lot of programs installed on your computer, you get access to software on the Internet. Never wait for a download or update again. All of that's done for you, by the guys who wrote the software, so you can get on with using it, rather than constantly looking after it.

Traditional software

Installing a new program can be a real headache, with all those confusing instructions, big discs, and messages. Installing traditional software can bring excitement, but it still takes time and involves many steps. Moreover, you and your users can use the software only on the device where they installed it.

Keeping up with the latest updates can be a challenge, but it’s worth it to get the results you wanted so much. If there are some new security updates, you must be ready to get into the browser and follow long instructions in the messy software maintenance world.

Software as a Service

At the same time, we have SaaS products that live in the cloud and eliminate the need to be present on your PC. No matter where you are. SaaS runs on remote servers, so you can concentrate on getting things done and making the most of your possibilities. The main task of software as a service product is to increase your productivity and get more things done.

Btw, it is not just convenient; it's also scalable. As more people join, the product can grow and adapt to meet their needs. You don’t have to stress about installing software on each customer's computer. Operating on remote servers, it keeps all the data in the cloud, so you have no worries, like with classical software, regarding the data when connecting a new device — just log in through your browser. According to our project statistics, SaaS is 95% an excellent solution for growing your business and enhancing user engagement.

Types of SaaS software

So, what makes these SaaS applications feel like a cool addition, driving your growth like an optimized workflow engine? SaaS solutions can help businesses focus on strategic initiatives by automating routine operations, centralizing data, and providing real-time insight. So, what are these different types of SaaS into which these solutions can transform your business?

Types of SaaS Applications

SaaS is software as a service, covering a broad range of applications designed to smoothen the operations and enhance the productivity of any business. SaaS solutions are offered for almost every business need, from customer relationship management to project collaboration.

Vertical SaaS tools

Vertical Saas tool is a tailored solution for industries such as retail, financial services, insurance, healthcare, or manufacturing. For example, a law firm may use a solution for legal document management and case monitoring, just like the Clio app.

Horizontal SaaS applications

These are the workhorses of the SaaS sector, providing solutions that are applicable across industries. Consider accounting software like QuickBooks, which helps businesses manage their cash, or project management tools like Trello or Asana, which helps teams stay organized no matter what they do. This category also includes e-commerce platforms such as Shopify, which allow anyone to easily set up an online store and sell their products.

Types of SaaS Products

There are different available types of SaaS products, each designed to cater to specific needs and provide a complete experience. With accounting software, you can easily handle all your financial tasks, from creating invoices to generating detailed reports.

CRM (Customer Relationship Management)

With CRM, you can manage customer interactions, manage leads, and cultivate connections all from one virtual platform. Also, you can easily strengthen data security by keeping customer data with CRM. For this, you can use Salesforce, Zoho, HubSpot, or Pipedrive.

CMS (Content Management System)

CMS allows you to easily create and manage a website or blog, even if you're new to technology. No coding abilities are necessary - simply drag, drop, and publish. The best example of this system is simple-to-use WordPress or Squarespace. However, some coding knowledge can thus be of use or is even demanded in more advanced customization or troubleshooting. Basic site creation, however, does not require any coding, which again makes it much easier to use by people who do not possess technical skills.

Therefore, while you can drag, drop, and publish with no coding at all, further customization of a higher level will require at least some coding skills. Within the SaaS product development, there are solutions as different as website builders like Wix and Webflow, both of which customers can use to easily create and launch a professional-looking website.

ERP (Enterprise Resource Planning)

ERP can help you to streamline some back-office activities, including inventory management and accounting. This type of SaaS allows for the monitoring of all these activities in a single location. There are some famous basic ERP systems: SAP, and Oracle NetSuite.

Accounting solutions

With the help of accounting solutions, it’s easy to track your finances, generate invoices, and manage payroll with one user-friendly interface. There are some examples: Quickbooks, Xero, and Wave.

Project management software

Project management software allows you to easily collaborate with your team, assign tasks, track progress, and meet deadlines. Think of it as your project organizer, keeping everyone on task. Many teams now use Asana and Jira, or Linear.

E-commerce software solutions

We love these solutions. They let you create an online store, manage your products, and accept payments all from one convenient platform. Have you ever heard about Shopify? Yes, that’s what this e-commerce solution looks like.

Types of SaaS solutions

There are different types of SaaS solutions, each designed to tackle specific problems. We’ve prepared some info for you to consider:

SaaS marketing tools

Nowadays, we can’t live without marketing tools, just like software can’t live without updates. Create email campaigns, manage your social media presence, and automate marketing operations to reach new consumers and increase revenue. Consider it a digital lasso for attracting new clients.

SaaS tools for remote collaboration

You have a nice opportunity to boost communication and coordination among geographically distributed teams. Think video conferencing, instant chat, and collaborative workspaces are all bundled into one, just like Zoom or Teams.

Types of SaaS models

Pricing strategies vary in SaaS companies. Knowing these models is very important to decide which of them is the most appropriate for our product. Many subscription services offer the choice to pay monthly or annually, depending on your preference. Some apps offer a free trial with basic features, but you can also choose to upgrade and get more cool stuff.

B2B SaaS

Imagine the backbone of a business – the CRM software that keeps track of customer interactions. The ERP software that manages everything from inventory to accounting, or the project management software that keeps teams on track, like Asana. These are the most common examples of B2B SaaS solutions that give modern firms a boost.

B2C SaaS

Now consider your personal IT habits. The photo editing app that makes you look like a million bucks or the music service that curates your perfect playlist (because who has time to pick songs anymore?). These are classic B2C SaaS products that have become an integral part of our daily lives without any notice.

Benefits of SaaS

Traditional software may be inexpensive initially, but the hidden expenses of installation, maintenance, and updates can quickly add up. With the subscription model provided by SaaS, the users do not have to spend so much money on a specific upfront investment. Instead, they just pay a predictable monthly or annual fee. Imagine a monthly gym membership: you only pay for what you use, and you don't have to worry about buying and maintaining all the equipment (or dealing with software updates). Yet, what are the benefits of SaaS over traditional software?

Overcode team prepared this table to summarize the primary benefits of SaaS software, highlighting the advantages for both business owners and users:

The Perfect Fit for Small Businesses

SaaS development can help businesses realize the power of strong software solutions that, due to upfront costs, were otherwise unreachable. Through flexible and scalable features, SaaS enables companies to tailor their software to suit particular needs without necessarily having to break the bank. Very user-friendly and manageable, SaaS applications do not require huge IT teams, hence availing advanced technology to small enterprises. On this level playing field, smaller businesses have the opportunity to rub their shoulders with industry giants because they can access the same tools at mere fractions of their traditional cost.

Integration

One of the most compelling advantages of SaaS is its unparalleled integration capabilities. Visualize living in a world where accounting software, project management tools, and customer relationship management systems could easily speak to each other, sharing data for automation purposes. This is what SaaS integration does.

Integration will break your data storage do away with the manual input, and make your operations smoother and more productive, error-free. Integration is the next step toward making data-driven decisions and receiving a single, unified, complete view of your business. The great news is that SaaS integration is flexible, scalable, and secure; this works to the advantage of all sizes of businesses.

Whether it's connecting your CRM to a marketing automation platform or the HR system to payroll software, SaaS integration is there.

Now, you know that software as a service is some kind of the king of modern solutions, offering both companies and individuals an advantage.

How to build a SaaS application: 7 main stages of product development

At this point, we will talk about a way to develop a SaaS application. Where do you start your SaaS product development process? We'll show you how to build a SaaS app your very own application step by step.

Confirm your idea's viability

Don't just do market research once; keep doing it regularly to stay on top of your game. It's a continuous journey that should guide your choices and actions as you work on your product. Yet, what are the steps?

• Research the market. Find out if people are interested in your SaaS solution by doing some research. Take the time to explore the market and see what's out there. Look for any opportunities where your product can make a difference and stand out from the crowd. One more thing to consider: don't just do market research once; keep doing it regularly to stay on top of your game.

• Identify the target audience. Who are the people you want to reach with your product? To create a product that people love, it's important to know what they want, what bothers them, and how they use technology.

• Evaluate the existing products. Start by identifying the direct and indirect competitors in the market. Then, analyze their feature sets, pricing models, user interfaces, and overall user experience. Knowing customer reviews and feedback deeper gives a view into where exactly customers face pain and areas of dissatisfaction. That will clearly show probable gaps in the market, thus enabling the pinning down of opportunities for differentiation. Careful research through the existing solutions will allow for refinement of the product concept, identification of the unique selling points, and formation of a compelling value proposition.

Keep in mind that the idea isn't to copy existing products but to improve upon their strengths and fix their weaknesses.

Select features of the SaaS product

Understanding the market should precede development, realized by a deep analysis of the competition, study of user needs, and industry trends.

• Competitive analysis, which involves mapping the closest competitors, identifying what they offer, their prices, and customer feedback with the help of tools like SimilarWeb, which provides information related to website traffic and demographics.

• Market research constitutes the reading up of the most recent industry reports and services from companies like Statista and Gartner to identify trends and potential business opportunities, or the discovery of untapped segments in niche publications to find out what the customer really wants.

• Study reviews, social media, and tools like Google Trends to understand user behavior with existing solutions for pain points.

• Integrate qualitative feedback by users with quantitative data from surveys and analytics that will help you in the development of your MVP.

Choose a monetization model

Once you know what you're selling and who you're selling it to, it's time to figure out how you'll make money. Let's explore some popular ways to earn a pretty penny from your SaaS business:

• Tiered Pricing

  Tiered pricing is when companies provide a product with multiple subscription plans that differ in features, storage, or even users. Such a model serves varied customer requirements and budgets. Through the various tiers provided, businesses can take advantage of customers' upgrading needs as they become more demanding. Each tier should, however, present a clear value for its price difference. There should also be a free tier to acquire users and showcase the product.

• Per-user Pricing

  Per-user pricing means charging the customer based on how many users would access the software. This model is extremely common in collaborative tools and enterprise solutions. Here, a clear user definition would help avoid disputes. Volume discounts for bigger customers, which would directly help maximize your revenues. Be careful not to experience churn when your pricing becomes excessive for customers.

• Per-Feature Pricing

  Per-feature pricing means that a customer is required to pay for certain functionalities or modules. This plan gives room for flexibility but can make very complex structures for your pricing. Customers need to understand the value brought by each feature in order to be able to pay for them. It requires great care in the choice of core features to be included in the base plans, with others remaining as premium options in order to avoid feature creep.

• Usage-based Pricing

  Usage-based pricing means charging customers only for resources consumed or services used. This model is especially desirable in software with variable patterns of use, such as cloud storage or data processing. This plan guarantees fair pricing per actual usage but is potentially complex in its implementation and control. To avoid customer dissatisfaction, transparent usage metrics and usage limits should be provided.

• Flat-rate Pricing

  Flat-rate pricing involves a fixed fee for unlimited access to the software. While this model keeps pricing simple, fixed price is not ideal for all software as a service offering.

  Optimal for:

  • Recurring products – tools required for project management, cloud storage, etc.

  • Utility-oriented products or services for which the fundamental value is easily recognizable and the same for every consumer.

  • Products that lack great complexities in their functionalities.

  Not Optimal for:

  • Products that are used more frequently for some time and less for some time, for example, data processing or video rendering.

  • Products that contain numerous parameters may be offered as a package of services.

  • Companies that need to implement company-level solutions that can only be afforded with company-level prices.

  This model works well only for products that have comparatively flat usage patterns and limited variations in features. For customer satisfaction, make sure that there is a value proposition regarding the product worth the flat fee being charged.

Think about how people use your product, how much they're willing to pay, and what makes your product special compared to others.

Choose the right technology stack

The technology tools you pick are like the building blocks for your software development product. It's what holds everything together and makes it work. Choosing the right tools can be the key to a smooth development process, saving you from endless coding headaches.

Here take a closer look at some of the technologies used in SaaS development, and see what makes them special and what they're not so great at:

If you can’t choose the right technology, Overcode developers can guide you in selecting the right technology stack to bring your product vision to life. We'll take into account your unique requirements, budget, and monetization model to make sure your SaaS application is built to last. Contact us now!

Create a SaaS product roadmap

A product roadmap is a strategic, super detailed plan that outlines the vision of a product and how the product might evolve over time. It serves as a compass for product teams, elaborates on the purpose of features, and frames the timeline of building the respective features.

This roadmap empowers you with features that help improve user interactions. You can also easily organize and express ideas to your team, partners, or stakeholders. The roadmap also allows you to guide your product’s success based on collected data, making sure the features people desire are incorporated.

A solid product roadmap is similar to a business plan that helps you make smart choices and can also impress potential investors.

Choose the right SaaS product development team

Your development team is the beating heart of your SaaS product, driving its evolution Having the right people on your team who know what they're doing is super important. Let's take a closer look at some important specialists you might want to include in your team:

• The project manager keeps the project moving forward, manages the team and resources, and ensures everything gets done on time.

• The designer crafts a user-friendly and visually intuitive interface for the SaaS app, making it easy for users to navigate and enjoy their experience.

• Front-end developers take UX UI design and convert it into an interface you interact with within your browser, as well as take care of those interfaces to look good at any possible display scale

• Back-end developers set up the interaction between the frontend interface, the server side, and the database. And double-check that data is stored securely.

• The DevOps engineer customizes infrastructures, automates development tasks, verifies everything works simply, and keeps the process itself in top shape.

• QA tester: finds and highlights any problems in the app to make sure it works the way it should.

How to pick your team?

When it comes to building your development team, you have two choices: either hire people directly or work with an external team. When you have your team, you have more control over things, but it also means you have to spend a lot of time and money finding the right people and setting up everything. Outsourcing development can be a great way to get things done, but it's important to communicate clearly and manage the project well to make sure everything goes smoothly.

Build your SaaS application

The development process can be divided into different stages that help us understand how things are made.

• Discovery session: explore thoroughly your product idea, who it's for, and what it needs to work.

• UX/UI design: create interfaces that are easy to use, visually appealing, and make users feel good.

• Development: create the main features of your SaaS app using the chosen technology stack.

• Data security: certify your personal information is safe and follow the rules to keep it that way.

• Integration: connect your SaaS app with other tools or services to make it even better.

• Testing: check that everything works perfectly before you release it to the world. Review if the software works properly, how fast it runs, and if it's safe from hackers.

• Quality assurance: ensure your application is robust, reliable, and user-friendly through rigorous testing, bug fixing, and performance optimization.

Challenges in SaaS Application Development

Creating a top-notch SaaS product is no easy task. We have to face some tough obstacles in our journey towards progress. Don't worry, brave SaaS entrepreneur! Your knowledge is your weapon. When you read our guide till the end, you’ll know what to expect and be prepared to come out on top.

Let's talk about some of the common problems you might face when developing SaaS applications.

Data protection

Nowadays, personal information is like a precious treasure that companies want to collect and use. As a SaaS provider, you have the important task of keeping your users' personal information safe and secure. Data security is super important, especially when it comes to protecting your users' information.

We have experience in setting up infrastructure & databases and creating custom APIs from scratch, as well as using Backend-as-a-Service (BaaS) app development platforms like Supabase and Firebase. BaaS solutions can better fit startups with limited resources because they provide secure and scalable APIs, Auth, and Database/Storage solutions from the box. A tailor-made backend is usually more flexible and resource-intensive. It fits complex apps better with a multi-tenant architecture.

Double-check that users’ data is secure from hackers so they can't steal your secrets or mess with your stuff.

Integration issues

When creating an application, always think about how it can work together with other tools and services that your users might already be using. When data flows seamlessly, it ensures that people have a hassle-free experience.

Make sure that different parts of the app work well together and can communicate with each other. Sometimes, unexpected technical problems can pop up when we're trying to put things together.

If your application contains multiple integrations with 3rd-party APIs and services, we recommend covering it with automated tests using tools like Cypress. After setting up the CI/CD system, these utility scripts will automatically run on each application deployment, checking that all the essential user flows work stably.

You can't guarantee that something will not crush after the next update on the side of the CRM or analytics service that your app integrates with. Still, automated tests help the developers find and understand such problems faster.

Updates

Technology is always changing and getting better. To keep up with the latest trends, you'll need to regularly update your app with new features and improvements. How do you verify these updates go easily and don't cause any trouble for your users?

It's a tough challenge to find the right balance between adding new features and fixing bugs without making the application unstable. You can make changes without interrupting the flow or creating new issues.

SaaS application development at Overcode

We seriously understand that every software as a service product must be unique. For someone building a SaaS application, it can feel overwhelming, but for Overcode, it's an achievable task. Our specialists work every day to create functional and user-friendly Saas applications in a wide range of industries. As a result, we will realize complex solutions, for which other developers do not undertake. Our team is fully aware of the current development frameworks as well as the cloud platform. With a proven track record of five years of delivering successful SaaS projects, we specialize in building:

• CRM systems: Optimized to boost the customers’ attention and stimulate purchases.

• E-commerce platforms: Made for smooth use when shopping online.

• Project management tools: Improving efficiency and work organization.

• Custom SaaS applications: If any particular business requirements are there then it can be fulfilled by implementing this module.

How can overcode help you?

• More than 80% of our projects are Saas applications where we implement best practices and innovative solutions on the market. Read our case studies of creating reliable SaaS applications for different industries.

• Overcode is a team of professional developers, who use innovative tools and technologies to create top-notch SaaS solutions. Our expertise spans a wide range of platforms and frameworks, including:

  Frontend development: React.js / React Native, Angular, Vue.js

  Backend development: Node.js, Python

  Cloud platforms: AWS, Supabase, Azure, and Google Cloud Platform

  Database management: PostgreSQL, MySQL, MongoDB

  Version control: Git

• Additionally, our collaborations with industry giants like Stripe and Supabase allow us to build on their reliable and advanced foundations to develop applications that offer the best experience to the users. Such partnerships enable us to provide clients with superior payment processing services as well as dependable database services.

• We follow an Agile development approach, where we constantly gather feedback and make improvements, resulting in a project that meets your user’s wishes.

• The main goal of our applications will stand on user experience, intuitive navigation, and clear information hierarchy as measured by the success rate of completing a task, the time on task, and the rate of errors.

• We’ll confirm your information stays safe and secure while also following all the rules and regulations.

• At Overcode, after an intro consultation, our developers and project managers will put together a clear time estimate for your SaaS development.

Each application is special, and the cost depends on different things, like how much work is needed and what the SaaS is for. However, if you want to know all about app cost - we got your back. Here’s an article where you can find out everything: from techniques to basic stages of development and their impact on prices.

If you want a rough idea, here's a sample estimate of how long it takes to develop some common SaaS features:

Overcode is a trusted partner that helps businesses unlock their full potential through innovation.

We're not just your regular software developers; we're your go-to partner for all things innovative and exciting. We're all in this together. Let's make your SaaS product super cool, super useful, and with a high level of personal data protection.

We are your ideal companion for the project, offering a range of features and benefits that make your life easier and more efficient:

• Overcode developers collaborate with specialists whose skill level is not lower than Intermediate. This allows us to maintain the quality of our products at a high level

• We have official partnerships with various platforms and certifications that prove the expertise of our developers

• Overcode cares about constantly updating best practices and implementing them in projects

• High-quality communication at all stages of product development and support for the application after its release

Start your journey to building the ultimate SaaS application. Get a free estimate after a call with us, let's embark on this incredible software development adventure with Overcode!

Should you migrate your web application to SaaS?

The SaaS market is hot, with many companies migrating from web applications to cloud-based models very efficiently. Companies like Salesforce, Dropbox, and Zoom come to prove the huge potential of SaaS in both increasing revenues and scalability and in customer satisfaction. You need to take into account both the business and technical aspects. Let's break down the important factors to help you make a decision.

Business considerations

• Is your web app ready to embrace the subscription model? Does it provide ongoing benefits that users would be willing to pay for regularly?

• Can your web app handle more people using it? With Saas, you can easily scale your business as your user base grows without any hassle.

• SaaS, or software as a service, is a reliable source of income because people keep paying for it every month. Is this a better option for your business than paying a one-time fee?

• If you want to stay ahead of the other IT world and bring in new users, think about migrating to a new platform.

Technical considerations:

• Architectural Flexibility: Your application architecture matters a great deal in a smooth SaaS migration. This will bring some challenges in the case of monolithic architecture but not in the case of microservices or cloud-native designs. Check how well your application works in a distributed, scalable environment.

• Data Security: Ensure that data security is of prime importance during the entire migration process. Do an evaluation of your existing security measures and indicate which measures are not in place to be added. There should be a strong infrastructure to support encryption, access controls, and data backup strategies.

• Cost-Benefit Analysis: The SaaS migration process is a costly investment in terms of time, energy, and resources. Do a calculated cost-benefit analysis to ensure that potential advantages are far-reaching in comparison with the investment proposed. Development costs, operational expenses, and long-term returns should be the key factors to consider.

• Ongoing Maintenance: SaaS needs you to update, maintain, and assist all the time. Assess the capacity of your team to run such ongoing responsibilities. Engage outsourcing options if necessary.

Our experts often say that migrating to SaaS can be a game-changer for high-growth businesses. Why?

• Saas helps you earn money regularly, which makes it easier to plan and know how much you'll make. Instead of getting caught up in the hassle of managing software licenses, concentrate on growing your business and achieving success.

• Saas breaks down the walls of distance, giving you the power to reach people from all corners of the world without the hassle of setting up different systems in different places.

In case you already have a product built, but your processes are not aligned the way you'd like them to be? Overcode can do a free 40-minute consulting session where we can break down the issues at hand:

• Developers not meeting deadlines?

• Poor communication with the client?

• A large task list for the MVP version? Overcode can tell you which integrations are really important in the first phase and which can wait for the extended version of the product.

• Discussion of the tech stack: existing or planned.

• Estimate request.

If you're thinking about moving your web application to the cloud, Overcode is here to help. Our team of experts will carefully examine your unique requirements and offer personalized guidance.

Get in touch with us now and get a free 40-minute consultation!