So, when did you last open Netflix? Maybe yesterday- Right?
Did you know it is one of the top real-life examples of SaaS product development?
Don’t be surprised if there are plenty more we use daily without even realizing it, such as Google Drive, Dropbox, or Zoom, to have an online chat with our friends or family.
The SaaS market isn’t just growing—it’s accelerating at hyper-speed. Irrespective of size, companies or organizations use at least 112 SaaS apps and spend $1000 to $3500/ employee in each financial year.
The global SaaS market is expected to hit $793.10 billion by 2029, growing at a CAGR of 19.38%. Average per-user spending is also set to soar. Put all of this together, and the SaaS product development market is exploding, and it is the right time to invest in it.
Might you have a question—Will SaaS solutions work for my industry? Yes, SaaS is not limited to one industry. Businesses across diverse industries can utilize it for cost-effectiveness and sustainable business growth.
Or if you have a question about how to build a SaaS product, we’ve got your back. We have created an article to help entrepreneurs like you get a complete idea about the development process and various aspects like benefits, cost, challenges, best practices, and more. With the right SaaS development services, turning your product idea into a scalable solution becomes faster and more efficient.
Thus, it’s time to explore the blog. Let’s Go!
What is SaaS Product Development?
Before you find a perfect answer to your question about how to create a SaaS product, it is essential to know the definition and basics.
The process of creating cloud-based software applications is called SaaS product development. SaaS apps are hosted on a cloud server, and users can seamlessly access them online through a browser instead of installing them on their devices.
Software-as-a-Service providers handle infrastructure and maintenance independently. This approach offers key advantages, such as cost-effectiveness, scalability, and convenience.
Like any app development, SaaS application development also involves steps such as ideation, requirement analysis, UI/UX design, frontend and backend development, quality assurance, launch, and maintenance.
In terms of use, users pay a subscription fee monthly, quarterly, or yearly instead of purchasing a one-time license fee. It allows users to use the apps based on their requirements and when they want to use them. SaaS applications scale with usage, making them perfect for all.
How is SaaS implemented? There are three ways to do it.
- Private Cloud: When SaaS applications run within an organization, using its dedicated cloud infrastructure and resources.
- Public Cloud: SaaS apps use shared cloud services and infrastructure, which external providers like AWS or Google Cloud manage.
- Hybrid Cloud: When SaaS cloud apps combine public and private cloud services, an on-premise data center cannot handle peak loads.
Benefits of SaaS for Businesses
SaaS products offer myriad benefits not only for businesses but also for users. From a business perspective, the question is: Why should you invest in SaaS product development?
Cost-effectiveness
The SaaS products save businesses from upfront infrastructure and hardware costs. Companies also save on ongoing expenses since the provider takes care of maintenance and support.
Scalability
SaaS products scale seamlessly, supporting an expanding user base without sacrificing performance. You can scale your product to meet demand.
Integration
Saas products can easily integrate with existing services that help businesses streamline their workflow and boost productivity.
Customization
Customization is one of the significant advantages of SaaS product development. Businesses can customize their SaaS app to meet their customers’ emerging demands.
Competitive Edge
Using SaaS-based applications, you can deliver your services at flexible pricing, which will attract more customers and increase retention rates.
Analytics
In almost all SaaS tools, you get built-in analytics and reporting tools that you can use to gain deeper insights and design a perfect business strategy.
Key Stages in SaaS Product Development
So, how to build a SaaS product? It is a staged process, and each step gradually leads to your dream product.
So, let’s look closely at the steps to develop a SaaS product!
1. Market Analysis
The first crucial step is idea validation to ensure your SaaS product meets the exact needs. Thus, start with market research, such as what products exist with similar intent, who your competitors are, and what the latest SaaS development trends are. Then, identify the gaps you’ll bridge with your software.
Also, determine for whom you’re going to develop your project, and that is your target audience, right?
Once you’ve completed everything, outline the problem statement, value proposition, and target market description. This will all help you later.
2. Define Features
What makes a user stick around an app is its features, and SaaS Product development is no exception. If you’re thinking about how to develop a SaaS product, this step becomes even more critical. So, your next crucial step is to prioritize the features. The best professional way to do it is using the Kano Model. It helps a lot when deciding on features.
- Features that’ll delight the user
- Core/Basic/Must-have features
- Nice to have features
- Features that have no effect
Also, remember to define features based on your business goals and target audiences.
3. The Monetization
Monetizing is not about pricing; it is about offering real value with a sustainable business model.
The right monetization strategy ensures long-term profitability. Thus, before you can monetize, you need to determine how to earn and how customers will pay, or they must have options to choose from.
The popular pricing models are categorized as follows:
- Per-User Pricing: Typically applies to SaaS products that are used by a team.
- Pay as you go: It is ideal for services with variable demand.
- Subscription: Recurring charges – monthly, quarterly, or annually.
- Freemium: Basic plans are free, and advanced plans are paid.
- Tiered Pricing: Offer multiple plans, each with increasing features such as Basic, Pro, Enterprise.
- Per Storage Pricing: Take Google Drive, for example. A certain amount of storage is free; users can pay for the extra space if they need more.
- Ad-supported Pricing: Earn through third-party advertisements on your SaaS products.
4. The Tech Stack
Selecting the right stack stack is crucial for developing a robust application. In fact, selecting the right technologies is one of the most important steps while planning how to create a SaaS product.
The tech stack refers to the tools and technology for developing a full-fledged SaaS application consisting of UI/UX, frontend, backend, database, hosting, infrastructure, and others. It includes:
| Layer | Common Technologies |
|---|---|
| Frontend (User Interface) | HTML, CSS, JavaScript, React, Vue.js |
| Backend (Server-Side Logic) | Node.js, Python (Django), Ruby on Rails, Java |
| Database | PostgreSQL, MySQL, MongoDB |
| Authentication | Firebase Auth, Auth0, Passport.js |
| Hosting & Servers | AWS, Google Cloud, Microsoft Azure, Heroku |
| APIs | REST, GraphQL |
| DevOps & Deployment | Docker, Kubernetes, GitHub Actions |
| Monitoring & Analytics | Google Analytics, Sentry, Datadog |
| Payment Integration | Stripe, PayPal, Razorpay |
5. SaaS Product Development Team
Who will develop it is more important than finding the right way to develop a SaaS product. It is the work of precision, experience, knowledge, and skills, as you don’t want to face any bounceback after releasing your app.
Choose an experienced SaaS development company, similar to what successful brands have done before. When hiring experts, evaluate their knowledge, check their skills, go through portfolios, read testimonials, enquire about hiring models, and then make a final decision.
6. Develop SaaS Product
At this step, you’ll have the final answer to your question—how to develop a SaaS product? Until reaching this stage, you have decided your goals, tech stack, and SaaS development team. So, from this step, the developers and designers will carry forward your tasks.
Starting with wireframes, the process moves into full UI/UX design. When the design phase is complete, developers build the backend, frontend, database, and integrating services.
The best idea is to start with SaaS MVP development. It will be cost-effective and help you gather real-time feedback from your users.
7. Test & Launch
Rigid testing will help you ensure that your SaaS app or software will work properly on both your and your customers’ sides. Quality analysts will use different testing techniques to ensure that your product is ready for launch. After quality assurance, check the final version and release it for your users.
8. Post-Launch Maintenance
To reap long-term benefits, support and maintenance should be ongoing. It will increase customer satisfaction and consistency. The process involves fixing defects, upgrading features, and legacy modernization.
Challenges in SaaS Product Development
Based on the earlier section, developing a SaaS product is easy. But things are not as they seem. Similar to day and night or heads and tails, there are specific challenges that you must be aware of. Understanding how to develop a SaaS product also means preparing for those hidden challenges.
Value Delivery
With the SaaS product market’s rising graph, customers’ expectations are also high. Additionally, business competition is also on the verge. Therefore, creating a customer-centric product is a significant challenge.
Security
Protecting sensitive data is a big hurdle as cyber attacks increase, whether it is a SaaS app for customers or data that your employees will access in-house.
Scalability
The worst apps don’t scale with the growing user base, and this is true of most failed applications. It is a big challenge in SaaS product development to have a scalable solution that scales in real time with feature updates and security patches.
Integration
Integrating SaaS products with existing systems isn’t as easy as it might seem. If the systems are loosely coupled, it can lead to serious issues during real-time execution.
User Adoption
Customers have established preferences, and convincing them to switch from conventional apps to the SaaS product can be a bit tricky.
Solutions:
- Conduct deep market research and user analysis.
- Use best security practices such as data encryption, security audits, and access control.
- Leverage the auto-scaling capabilities of cloud technologies.
- Collaborate with the best SaaS development company to integrate SaaS products seamlessly with other systems or APIs.
- Craft a perfect marketing strategy and educate users about the benefits of using SaaS products.
Cost to Develop a SaaS Product
The SaaS products come with multiple benefits for a business. However, to have an application for your business that meets all criteria and aligns with specific needs, it is essential to know — how much does SaaS development cost?
The average SaaS Product development cost to build a product or application typically ranges between $25,000 and $150,000+.
But wait a second—
Has someone ever told you that app development cost depends on several key factors? No worries.
Let’s break it down!
The Complexity
The complexity of a SaaS product is determined by the complexity of its features and the size of its implementation, i.e., from micro to large-scale ones. With Micro SaaS Development, you can start at $10,000-$25,000; however, if you need a complex one, then add an extra zero, like $250,000.
The Type
SaaS use cases suit diverse industries, and based on your needs, you can develop them. Remember that different apps come at your own cost. For example, a basic CRM can cost you $30,000, but if you need a SaaS ERP, it may cost you $50,000 or more.
UI/UX
Appealing interface and engaging user experience lay the foundation for long-term success, but it has some cost, like $5,000-$50,000+
Integrations
Why reinvent the wheel when already pre-built solutions are available? Yes, it’s all about integrations, such as payment gateways. The cost is associated, but the benefits are unlimited.
Hiring The Experts
If your question is how to build a SaaS product, the answer starts with hiring experts for your next project. The cost of SaaS development also depends on hiring models, such as whether you need experts on a dedicated basis or a time-and-material model.
The Developers Location
The location of developers also influences the costs of SaaS product development. For example, hiring SaaS developers in Australia will cost you differently than hiring a SaaS app development company in the USA.
Best Practices for Successful SaaS Product Development
SaaS products are gaining popularity like wildfire. The global SaaS market is currently $266.23 billion and is estimated to grow to $1131.52 billion by 2032 [Fortune Business Insight]. This rising adoption creates multiple opportunities for businesses to launch their applications.
But how to make it a success? Some proven practices can help you with successful SaaS product development.
Market & Audience Insights
Know who you’re building for and where you’re going to launch. The first best practice is to know your market and audience. This will give you a clear vision and help you deliver value to your customers.
Prioritize User Experience
The success of your app or solution depends on the degree of satisfaction it provides to customers. Along with an appealing design, focus on smoothness so the user can have a delightful experience while using your solution.
Adopt Agile
Agile development methodology and SaaS product development are the best duo and made for each other. With flexibility and continuous improvement, you can create a successful SaaS product. Adopting agile methods is also the best answer to your question: How to create a SaaS product?
Adopt CI/CD
CI stands for Continuous Integration(ensures integration and testing of code changes regularly), and CD stands for Continuous Deployment(automates reliable delivery of updates). This process minimizes bugs and boosts security.
Security & Compliance
Implement robust security measures, including user authentication, data encryption, and compliance with relevant regulations.
Performance Monitoring
Implementing a robust monitoring and analytics system before product release is crucial for continuous performance and reliability tracking, including measuring uptime and response times.
Examples of Successful SaaS Products
Hope you got an idea what are the best practices and How to develop a Saas product? So, here comes the most interesting examples of successful SaaS products and consideration for you as some remarkable references.
Let’s explore!
| Successful SaaS Products | Description |
|---|---|
| Slack | Team chat and collaboration for modern workplaces. |
| Dropbox | Cloud file storage and sharing made easy. |
| Zoom | Video conferencing for remote teams and meetings. |
| Shopify | E-commerce platform for online store creation. |
| Salesforce | CRM software to manage customer relationships. |
| Notion | All-in-one workspace for notes and projects. |
| Trello | Visual task management with boards and cards. |
| HubSpot | Marketing, sales, and service CRM platform. |
| Airtable | Spreadsheets meet databases for teams. |
| Figma | Collaborative design tool for teams and prototyping. |
How to Choose the Right SaaS Development Partner?
Okay, so you’ve got an excellent idea for a SaaS app. But you need an experienced team to craft it as a success. Choosing the right SaaS development services provider is the best call you need to make.
Instead of falling into the low price trap, look for the experts who have actually made it for businesses and brands, ensuring the quality of the solution with real cost-effectiveness.
Saas product development requires expertise, so the first step to finding your right partner is to search for the names on the internet. Once you find it, make a shortlist and then:
- Go through the work folios
- Check what brands they have served before
- Check if they have expertise in developing SaaS solutions similar to your idea and vision.
- Evaluate the technical and communication skills of developers through interviews.
- Enquire about the hiring model, NDA process, and transparency.
Based on the above you can make your call. Whomsoever SaaS developers you hire they should be able to walk you through the process of how to build a SaaS product, step by step rather than making false commitments.
Conclusion
After reading this guide, we hope you now have a clear vision of what you need to do to make SaaS product development successful. Instead of building a conventional app for business, developing a SaaS app is a smart decision with benefits like cost-effectiveness, scalability, and more. Partnering with a reliable software development company can help you navigate this process smoothly and bring your SaaS product to life efficiently.
The entire game depends on whom you are going to develop it for, what pain points it will cover, what challenges it will solve, and who will develop it. If you are looking for an experienced SaaS development company, The NineHertz is your go-to partner.
We specialize in custom SaaS development, and our team is composed of certified SaaS developers who deliver out-of-the-box solutions that simplify clients’ challenges. Our knowledge of working with the latest tech stack and agile methodologies allows us to deliver what we commit to our clients, meeting their needs. We are open 24/7 to discuss your idea and how we will turn it into an exceptional SaaS solution.
So, when are you planning to launch your very own SaaS product? Give us a call!
Frequently Asked Questions
What is SaaS product development?
The process of developing SaaS products through multiple steps, such as ideation to launch, is called Software-as-a-Service product development.
What are the key phases of SaaS product development?
If you’re wondering how to develop a SaaS product, it involves several steps such as ideation, research, planning, designing, prototyping, MVP development, quality analysis, testing, launch, and post-release maintenance.
How long does it take to build a SaaS product?
It is also an important question, similar to how to build a SaaS product. The time to develop a SaaS application depends on the idea’s complexity. On average, it may take 3-6 months.
What technologies are commonly used in SaaS development?
Some of the common technologies used in SaaS development are:
- Frontend: React, Angular, Vue.js.
- Backend: Node.js, Django(Python).
- Database: MySQL,PostgreSQL, MongoDB.
- Cloud Platforms: AWS, Azure, GCP.
How much does it cost to develop a SaaS product?
The cost to develop a SaaS product ranges between $30,000 and $200,000+. But this is just a ballpark figure; the actual cost depends on the complexity of the idea, features, integrations, and tech stack—especially when you are figuring out how to create a SaaS product for business.
What is the difference between SaaS and traditional software?
The SaaS software or app runs through browsers, and users access it after paying for subscriptions. Conversely, traditional software requires installation on a device and a one-time licensing fee.
How do you validate a SaaS product idea?
Talk with real users, take surveys, launch a prototype, and gather feedback while exploring how to build a SaaS product that can simplify the challenges of end users or customers.
