5 Emerging Trends in the SaaS Industry for 2023
A steady rise in SaaS popularity reveals that SaaS is here to stay. It will continue providing small and large enterprises with valuable features and the convenience onsite infrastructures can’t offer. But why would a UX design company choose SaaS solutions over traditional onsite infrastructure? In most cases, this decision is explained by the fact that SaaS provides speed and simplicity that empower small businesses to compete.
With 2023 around the corner, businesses using SaaS should embrace the trends that will drive the industry. This article discusses the top five drivers expected to accelerate SaaS in 2023.
Mobile Optimization Retains Momentum
The mobile-first design seems to be a lasting reality that won’t go away. The reason is that the world has gone mobile in all its interactions. People are busy and don’t have the time to access solutions using desktops. Moreover, billions of mobile gadget owners don’t own or easily access desktops. That’s why going mobile is the only sure way of moving forward with your target users.
Most traditional server solutions limit how people access software and shared documents. The rise of remote working, especially after COVID-19, has significantly increased the need for cloud-based services. As the remote work revolution takes shape, the mobile-first reality will follow proportionally. Therefore, companies seeking to maximize their SaaS experience next year must prioritize their users’ mobile experience.
Vertical SaaS targets specific markets and provides them with software solutions. Next year, you may expect to see SaaS solution providers up their game in this area to offer their customers the best experience. This approach replaces generic tools that accomplish similar goals but deliver mediocre results. 2023 will witness the rise of this practice in the SaaS industry to give businesses targeted solutions.
Low or Zero-Code SaaS
While low to zero-code apps aren’t new, their importance has increased after the pandemic. The average SaaS user doesn’t want to bother themselves with much coding. Therefore, a forward-looking SaaS company should understand how to build and customize software that meets user needs.
Please note that enterprises depend heavily on software regardless of size. Thus, the more complex editing and customizing processes in the apps are, the less value they add to users. Therefore, we will continue to see more drag-and-drop customization and features dominating software automation across various industries.
All forward-thinking SaaS companies in 2023 must offer their users numerous low-code/no-code options to meet their usability and customization needs. These features won’t involve manual coding and will provide businesses with desired flexibility, automation, and workflow optimization.
Customer Experience for Retention Remains Focal
The customer is central to all SaaS businesses. Without customers, all the other trends shaping the industry in 2023 will amount to nothing. Thus, it is reasonable to expect an increased focus on enhancing customer satisfaction, receiving customer feedback, and promoting customer experience.
SaaS companies seeking to acquire more clients in the coming year must build customer cohorts and streamline their customer acquisition processes. Since all SaaS enterprises operate on a subscription basis, they must keep their annual and monthly subscriber figures stable to retain income generation. Thus, boosting customer experience will be vital to their survival and success.
These firms will have to do the following to survive the endless battle for customers next year:
- Identify their target audiences and create personalized experiences for them.
- Promote excellence in their customer support.
- Constantly update and fix stability issues in their services.
All reputable researchers agree that SaaS business efforts will focus on customer success and acquisition in 2023. That’s why 25% of SaaS firms concur with this fact. No wonder, according to research from PWC, customers are willing to pay more for items if they enjoy a positive experience from sellers. The study shows that consumers were ready to pay a premium price of up to 13% to 18% for luxury and indulgence services, as they enjoyed a great customer experience.
Another consumer survey reveals that customer experience (CX) significantly impacts impulse buying. It shows that 49% of buyers made impulse purchases after getting more personalized experiences. More interesting findings in a Walker study towards the end of 2020 reveal that CX will overtake pricing and product as the primary brand differentiator.
So, the key to survival and success in 2023 depends on how SaaS players get, satisfy, and retain customers. All the rest are just tributaries because only clients define business and keep SaaS players in it.
Focus on Products
Focusing on customer-centric products is another trend that will shape SaaS in 2023. The reason is that the changes we’ve just discussed won’t happen without products. All these good experiences are nothing if a customer can’t buy a product that solves their problems.
That’s why according to 18% of surveyed SaaS companies, everything boils down to product quality and design. As SaaS companies focus on improving CX, they must balance things to ensure those experiences culminate in quality solutions. To do this, SaaS leaders and players should concentrate on the following:
- Invest in product development (new features).
- Improve product-market fit to make their products better than their competitors’ alternatives.
- Move toward a self-service product-led growth (PLG) model.
Three Success Keys for SaaS Companies in 2023
Now, you are abreast of the trends. Indeed, financial challenges are bound to face some SaaS players. However, they can maximize operational efficiency and remain on top of their game. So, how do you position your SaaS business to benefit from them? Here are three expert suggestions to help industry players remain afloat.
- Review costs and take steps to increase cash runway for 18-24 months.
- Focus on customer retention and expand existing customer accounts to 20-30% of revenues.
- Invest in product development and improve product-market fit.
With the top five trends that will shape SaaS in 2023 at your fingertips, you can now get ready for the next year’s business challenges better. We hope you will embrace these insights to position yourself correctly and build a solid competitive advantage in the SaaS market.
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