MyPage is a personalized page based on your interests.The page is customized to help you to find content that matters you the most.


I'm not curious

3 Key Steps to Validating Your SaaS Idea

Published on 04 November 15
452
0
1
3 Key Steps to Validating Your SaaS Idea - Image 1
The popularity of SaaS is in constant raise as it proved to be a highly beneficial delivery model for multitude of business applications. These applications that users pay for on a subscription basis are hosted and managed in a service provider's data center and can be accessed via browser. They are always at your disposal, regardless of your physical location, and as SaaS does not involve any heavy expenses related to installing, maintaining and upgrading, it is considered extremely cost effective.


SaaS provides many advantages for your business by making it scalable, the process of administration simpler and collaboration far more effective. For all enterprises that are looking to expand their business, SaaS is certainly the most profitable way to go. However, in order to achieve excellence, you have to successfully execute your vision and focus on several key steps.


1. Determine your target audience


Building the right product for the right market is the foundation for success . Once you create a prototype, prior to its release, it is of utmost importance that you carefully define your target audience. After that, determining what types of messages should you create to drive marketing and sales should not pose any difficulties. With SaaS, increasing trial and paid conversions has never been easier, since it allows you to easily familiarize with your audience and gain insight into your customers' experiences. It enables them to send you valuable feedback and through their responses you gain detailed insight in the way they run their operations.


2. Outreach to acquire more information


After you have determined who might be your potential customers, the next step would be to contact them. Regardless of the communication channel you opt for, phone or email, you are bound to receive some crucial information. Even though this way you lack visual clues about your consumers and their business, you will still be able to understand their needs and wants more clearly. Additionally, through contact, you are building your online presence that will ultimately attract new clients.


Conducting formal survey thorough web-based services such as Zoomerang or SurveyMonkey is also highly beneficial, as then it will be much easier to collect results. Upon receiving some useful feedback on your product, you will want to select positive ones in order to do further research and validate whether there are people who are actually comfortable with paying for it.


3. Analyze results


Lastly, by creating a table in Microsoft Excel, you can conduct a simple analysis. All you have to do is place the variables you want to look at in the row label section and insert both sent and responded. Further you need to check whether there is some statistical significance by using chi-square calculator and depending on the percentage of success, you are able to conclude whether your outreach strategy has provided you with the results you have expected. If not, then you should consider altering, or completely changing it.



Today, with the growing popularity of SaaS, companies are provided with an alternative to purchasing a software license when they wish to use an application that is commercially available. Many vendors recognize multitude of SaaS benefits, however in order to enjoy them, business idea has to be viable. First step would be the determination of your target audience and their requirements, followed by detailed analysis. Finally, upon receiving the results, do not forget to keep regular track of your business development and industry trends in general that are constantly changing.












3 Key Steps to Validating Your SaaS Idea - Image 1

The popularity of SaaS is in constant raise as it proved to be a highly beneficial delivery model for multitude of business applications. These applications that users pay for on a subscription basis are hosted and managed in a service provider's data center and can be accessed via browser. They are always at your disposal, regardless of your physical location, and as SaaS does not involve any heavy expenses related to installing, maintaining and upgrading, it is considered extremely cost effective.

SaaS provides many advantages for your business by making it scalable, the process of administration simpler and collaboration far more effective. For all enterprises that are looking to expand their business, SaaS is certainly the most profitable way to go. However, in order to achieve excellence, you have to successfully execute your vision and focus on several key steps.

1. Determine your target audience

Building the right product for the right market is the foundation for success . Once you create a prototype, prior to its release, it is of utmost importance that you carefully define your target audience. After that, determining what types of messages should you create to drive marketing and sales should not pose any difficulties. With SaaS, increasing trial and paid conversions has never been easier, since it allows you to easily familiarize with your audience and gain insight into your customers' experiences. It enables them to send you valuable feedback and through their responses you gain detailed insight in the way they run their operations.

2. Outreach to acquire more information

After you have determined who might be your potential customers, the next step would be to contact them. Regardless of the communication channel you opt for, phone or email, you are bound to receive some crucial information. Even though this way you lack visual clues about your consumers and their business, you will still be able to understand their needs and wants more clearly. Additionally, through contact, you are building your online presence that will ultimately attract new clients.

Conducting formal survey thorough web-based services such as Zoomerang or SurveyMonkey is also highly beneficial, as then it will be much easier to collect results. Upon receiving some useful feedback on your product, you will want to select positive ones in order to do further research and validate whether there are people who are actually comfortable with paying for it.

3. Analyze results

Lastly, by creating a table in Microsoft Excel, you can conduct a simple analysis. All you have to do is place the variables you want to look at in the row label section and insert both sent and responded. Further you need to check whether there is some statistical significance by using chi-square calculator and depending on the percentage of success, you are able to conclude whether your outreach strategy has provided you with the results you have expected. If not, then you should consider altering, or completely changing it.

Today, with the growing popularity of SaaS, companies are provided with an alternative to purchasing a software license when they wish to use an application that is commercially available. Many vendors recognize multitude of SaaS benefits, however in order to enjoy them, business idea has to be viable. First step would be the determination of your target audience and their requirements, followed by detailed analysis. Finally, upon receiving the results, do not forget to keep regular track of your business development and industry trends in general that are constantly changing.

This blog is listed under Development & Implementations and Enterprise Applications Community

Post a Comment

Please notify me the replies via email.

Important:
  • We hope the conversations that take place on MyTechLogy.com will be constructive and thought-provoking.
  • To ensure the quality of the discussion, our moderators may review/edit the comments for clarity and relevance.
  • Comments that are promotional, mean-spirited, or off-topic may be deleted per the moderators' judgment.
You may also be interested in
Awards & Accolades for MyTechLogy
Winner of
REDHERRING
Top 100 Asia
Finalist at SiTF Awards 2014 under the category Best Social & Community Product
Finalist at HR Vendor of the Year 2015 Awards under the category Best Learning Management System
Finalist at HR Vendor of the Year 2015 Awards under the category Best Talent Management Software
Hidden Image Url

Back to Top