SaaS Apps

Things to Consider While Developing SaaS Application


The SaaS business model has been in existence for quite some time now and has proven to be an extremely lucrative venture. According to PitchBook Data, Inc., investors have poured over $3.62 trillion into IT-related companies belonging to this category since 2013.

Image Source

In recent times, this trend has become more prevalent. One significant contributing factor is the use of cloud computing and the COVID-19 pandemic which catalyzed remote work.

Products such as Slack, Zoom, and Microsoft Teams have gained massive popularity due to their ability to facilitate remote communication and collaboration.

By leveraging the potential of cloud-based computing, companies have unlocked the possibilities of flexibility and accessibility for businesses worldwide, paving the way for a new era of working.
As a result, venture capital and other investors are putting money into SaaS startups, with the global SaaS market size projected to grow at a CAGR of 13.7% from 2023 to 2030 and valued at USD 261.15 billion in 2022.

Image Source

Looking ahead to the promising future of SaaS applications in the upcoming year, you might be thinking about launching a new venture or growing your existing business in this arena. 

But are you ready to navigate the highly competitive SaaS market?

If yes, then before you start developing a SaaS application, there are certain important factors that you should consider. What? Let’s explore some of them below.

Considerations to Keep in Mind When Developing a SaaS Application

Currently, in 2023, the market size of software-as-a-service (SaaS) is worth around 197 billion U.S. dollars, growing to 232 billion by 2024. Users can access these cloud-based services on a variety of platforms, such as their desktops, mobiles, and through web browsers.

1. Know Your Target Audience

The first and most important aspect of developing a SaaS application is knowing your target audience. With that, we mean:

  • Try to get insight into what your targeted customers require, what they like, and in fact what challenges they are facing.
  • Capture what’s going around you by identifying the industries, businesses, and individuals that would benefit the most from your solution.
  • Understand buying habits of your target audience.
  • Conducting market research and competitor analysis to gain insights into the existing demand and competition in the market.
  • Refining your value proposition and messaging to resonate with your target audience’s needs and aspirations.
  • Develop user personas to guide your design, development, and marketing efforts.
  • Creating a minimum viable product (MVP) and testing it with a group of early adopters from your target audience to gather feedback and validate your assumptions.
  • Continuously iterating and improving your solution based on the feedback and data from your users.

Moreover, some essential features that a SaaS app should have, are

Must-have Features of Software-as-a-Service Application

User AuthenticationSecure login and authentication mechanism for users, ensuring only authorized access to the app.
Role-Based Access ControlGrant different levels of access and permissions based on user roles to maintain data security.
Intuitive User InterfaceUser-friendly design and navigation, providing a seamless and intuitive experience for users.
ScalabilityBeing able to cope with a larger user base and higher levels of data, without a negative effect on the performance of the system.
Data Backup and RecoveryAdd feature that let user protect their data against loss. The system should create regular backups and develop a reliable method for restoring data.
Analytics and ReportingKeeping track of app usage statistics and delivering informative feedback to both customers and administrators alike.
Multi-platform SupportDesigned to work across a range of devices and systems, both for desktop and mobile users
Integration CapabilitiesAbility to integrate with other systems, APIs, or third-party services for enhanced functionality.
Security MeasuresImplementing robust security measures to protect user data, including encryption and firewalls.
BillingIncorporating a billing system to handle subscription plans, payment processing, and invoicing.
Customer SupportOffering responsive customer support channels to address user queries and issues efficiently.

2. Choose the Right Technology Stack

It’s essential to choose a technology stack that aligns with your SaaS application’s unique requirements and can help you achieve your goals. 

Always remember, selecting the wrong technology stack can significantly impact the development timeline and budget, so choose wisely. Be sure to conduct thorough research and seek expert advice from a software product development company if necessary to make the right decision. 

Here is the commonly used tech stack in SaaS application development:

FrontendHTML/CSS, JavaScript, React, Angular, Vue.js
BackendNode.js, Express, Ruby on Rails, Django, Spring Boot
DatabaseMySQL, PostgreSQL, MongoDB, Cassandra, Redis
Storage ToolsCloudflare, Google Cloud Storage, Microsoft Azure Storage, Akamai
Third-Party Tools
Payment GatewaysStripe, PayPal, Braintree
Authentication/AuthorizationAuth0, Firebase Authentication, Okta
Analytics and MonitoringGoogle Analytics, Mixpanel, New Relic
Email DeliverySendGrid, Mailgun, Amazon SES
Deployment and HostingAWS Elastic Beanstalk, Heroku, Microsoft Azure App Service

3. Decide On the Pricing Model

The pricing model is a crucial factor to consider while developing a SaaS application. Finding a middle ground between cost and profitability is a must; if your product’s price is set too high, prospective customers could be put off, while if the cost is too low, your enterprise might not gain the revenue it requires for sustenance.

Well, it’s important to keep in mind that there isn’t a single pricing model that works for every SaaS product out there. It really depends on what you’re offering and who you’re aiming to sell to. That said, there are a few pricing models that are commonly used in the SaaS world, including

  • Subscription-based: Subscribers are required to pay a continual fee to be able to take advantage of the app and its various functions.
  • Freemium: Free access to fundamental capabilities is available, with paid subscriptions that grant extra features.
  • Usage-based: Prices are determined by the number of app resources utilized.
  • Pay-as-you-go: Users are billed based on granular usage metrics (e.g., transactions, API calls).
  • Custom Pricing: Tailored pricing models for enterprise clients or high-volume users.

4. Security is a Must

Your users are trusting you with their valuable data, and any breach of security can result in loss of trust, reputation damage, and even legal consequences. To avoid this, ensure that your SaaS application has a robust security infrastructure that protects against potential threats. This includes 

  • using secure servers
  • implementing data encryption
  • following security best practices
  • regularly testing for vulnerabilities

In addition, consider obtaining security certifications such as SOC 2 or ISO 27001 to give your users added confidence in your security measures. Don’t compromise on security, as it is crucial for the success of your SaaS application.

5. Prioritizing Scalability from the Outset

When building a SaaS application that serves multiple customers, you need to ensure that it can handle a large volume of traffic and data without slowing down or crashing.

Scalability can be achieved in two ways – horizontally and vertically. Horizontal scaling refers to adding more machines or nodes to the system, whereas vertical scaling involves adding more resources to a single machine.

It’s important to plan for scaling from the start because if your application becomes popular, it can be difficult to retrofit your code to accommodate growth. Consider using cloud-based solutions like Amazon Web Services or Microsoft Azure that allow for easy scaling without requiring a complete redesign. 

Another consideration for scalability is designing your architecture to be modular and loosely coupled. This means that individual components can be easily replaced or scaled up or down without affecting the rest of the system. Additionally, incorporating load balancing and caching strategies can also improve the application’s performance and responsiveness.

6. Develop a Strategy to Gain New Clients

Did you know? Businesses anticipate that currently 70% of their apps are based on Software as a Service, and they believe this figure will escalate to 85% in five years.

Image Source

Building a successful SaaS app requires a solid client acquisition pipeline. It’s not just about getting customers, but also keeping them satisfied and renewing their subscriptions. The aim is to recover the acquisition cost within a year.

Remember, SaaS sales cycles are longer as trust needs to be built and value demonstrated for a long-term commitment.

Having a dedicated team focused on customer relationships is crucial. They ensure customer success, satisfaction, and loyalty.

Simultaneously, as a business, it’s crucial to not only retain your existing customers but also consistently gain new ones. This can be achieved by implementing successful marketing and sales tactics that attract fresh clientele.

7. Provide Updates Regularly

Keeping your SaaS product up-to-date is crucial to staying ahead of the competition and meeting your customers’ evolving needs. To achieve this, 

  • It’s vital to adopt an agile development methodology that allows for frequent and efficient updates. This involves dividing your development process into smaller sprints, which enables you to respond quickly to customer feedback and implement necessary changes. By doing so, you can ensure that your product remains competitive and relevant and that your customers stay satisfied.
  • Regular newsletters or notifications will keep your customers informed on the most recent updates. Designing a web page that showcases recent features or changes to your software is also recommended. Gaining feedback from customers will prioritize which features or updates will give the most value.

Offering continual updates reveals a dedication to providing quality and keeping customers content dedicated.

Quytech Your Trusted Partner for SaaS Application Development

Developing a Software as a Service (SaaS) application can be an exhilarating yet daunting experience. With numerous aspects to take into account, it’s not uncommon to feel overwhelmed. Fortunately, you do not have to go through this experience on your own. At Quytech, we possess expertise in SaaS development and provide comprehensive services to guide you through the process.

Our skilled professionals can guide you through ideation, conceptualization, implementation, and deployment. Trust us to be your reliable SaaS app development company. Moreover, here is a quick overview of how we develop a SaaS app.

  • Design: Develop a clear and intuitive UI that effectively solves users’ tasks. Pay attention to mobile mockup designs, as mobile-first SaaS is a growing trend. Implement extra protection and role-based access features.
  • Tech Stack and Engineering: Choose the appropriate tech stack, such as Angular.js for front-end development, Ionic for hybrid app development, Symphony for backend, and Docker/Kubernetes for microservice architecture. MongoDB can be used for efficient data storage and exchange.
  • Partitioning: Divide the software’s data into separate partitions to accommodate future alterations, scalability, performance improvement, flexibility, and security enhancements. Consider different partitioning strategies, such as horizontal, vertical, and functional.
  • Testing: Conduct thorough manual and automated testing to ensure the software meets user requirements and has minimal bugs. Engage beta testers to discover non-trivial use cases. Perform cloud security assessments.
  • Deployment: Automate the deployment process to ensure smooth user access, comprehensive documentation, and prompt support. Deploy small changes incrementally instead of major updates to minimize system downtime.
  • Managing, Monitoring, and Optimizing: Continuously manage, monitor, and optimize the performance of the SaaS application to meet customer expectations. Track security vulnerabilities, address user experience issues, and ensure scalability readiness.
  • Migrating to the Cloud (if applicable): If the SaaS development framework was not cloud-based initially, migrate it to the cloud using appropriate migration options like P2V, P2C, V2V, or V2C, considering server type, data volume, and acceptable downtime.

Following this process ensures a well-designed, robust, and scalable SaaS application that delivers value and meets customer expectations.

Closing Words

Developing a top-notch SaaS app requires careful planning, a user-friendly interface, and a strong marketing strategy. Stay focused on your target audience, choose the right technology stack, hire a reputable SaaS product development company and continuously gather user feedback for improvements. With dedication and adaptability, your SaaS app can become a leader in the industry. Good luck on your journey!