saas niche markets

So when marketing vertical SaaS tools in niche markets, your job is much easier. Don’t Forget Offline Marketing. As the SaaS market grows, the trends will change. This means finding influencers, bloggers, experts, thought-leaders within the SaaS niche. Why focus on targeting a niche market for Software as a Service (SaaS)? To make money online it is essential that you first identify the current untouched niche markets. The term ‘Micro SaaS’ was originally coined by Tyler Tringas when describing his business Storemapper, a few years back. Meanwhile, GoSquared is building additional functionality to help small teams make use of their website analytics. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. This SaaS trend is never going away: a painful process is discovered, and dozens of companies emerge to fix it. On the other hand, in high-touch sales, a human helps the user organization throughout the entire buying and on-boarding process. By now, we’re all well aware that SaaS buyers want to test out and play with products before they buy them. Horizontal software is built to perform a specific business or departmental function and can be used by companies across various industries. 3. Surprised by this SaaS market trend? Drawing lessons from AppFolio, we uncover viable niche SaaS ideas in the health and personal care spaces. Organic Search / SEO. In these cases, we’ll see more companies emerge with the goal of working far better than legacy competitors—but for one core use case. 6 Lessons from SaaS Founders on Discovering Product Market Fit. Ten years ago, legal tech had an enormous boom, with so many law firms going digital for the first time. The corporate mobile market within SaaS is expected to be worth $7.4 billion by 2021. Clio (http://www.goclio.com), one of the companies that I've invested in, is a great example of that strategy. Putting the market on an annual run rate in excess of $100 billion. B2B SaaS: Your Guide to Pricing, Sales, and Market Opportunities You don’t have to hit the billionaire club to have a successful, highly profitable SaaS product. This aids in building trust and social currency. SaaS Trends: What's Coming Up Ahead in 2020, AppSumo’s 2020 Software Trends for Freelancers, Marketers, and Agencies, How to identify a SaaS Opportunity - Kareem P. Jackson. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. There are more profitable SaaS companies run by small teams. For these reasons (and because of the untapped potential), we’ll see even more of these companies emerge. Weight loss. Real Estate SaaS. Top-notch APIs and integrations are a deciding factor for buyers. A good example of this is how. But what about SaaS products that are exclusively sold via demo? , and these types of companies tend to experience faster growth than horizontal companies too. Products of great value tend to sell themselves. – Showdigs is a web app that lets busy property managers request that nearby real estate agents handle vacancy showings for them. Profitable, established SaaS businesses will build additional features and pricing tiers that allow them to move upmarket and win bigger fish. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. 2. Niching allows B2B SaaS companies to thrive in crowded markets. More vertical-specific SaaS applications emerge, Ever heard the saying “the riches are in the niches?” With SaaS, that’s true. They don’t require licenses, which tend to make them more affordable and easier to implement. The article below is taken from SaaS Mag Issue 4. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. Whatever market you choose for your business, make sure you select it with confidence and the numbers to back it up. 4. One SaaS investor believes there’s so much potential, that there should be. The conversations are richer, and your advice or recommendations are more precise. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. There isn’t only one good way to find product market fit. When the product is custom-built for its users, it advertises itself to a certain degree, by having a built-in understanding of the user organization’s needs and pain points. A Micro SaaS business or product focuses on solving a problem in a niche market, using minimal resource. What value comes from it? No wonder that an increasing number of SaaS vendors, both legacy and start-ups, are coming up with vertical-specific solutions. Total Addressable Market. Now, of course we have Doordash, Priv, and many others. Sometimes, they are available on the website or can be downloaded as add-ons to existing bigger SaaS. Entrepreneurs will take advantage of the application gap and create more products that rely on AI and machine learning for marketing personalization, security and fraud detection, healthcare automation and more. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. Although the effects of the virus have created uncertainty for global markets, it remains true that SaaS has created … 2020 SaaS Market Overview Read More » A few years ago, people didn’t want the jack of all trades, master of none product anymore. So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets … So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets … Whether a SaaS company considers itself “all in one” or “best of breed,” there are going to be plenty of reasons for integrations. In case you’re unaware of this lingo: a vertical niche is intended for a specific type of business (such as appointment software for dental offices), while a horizontal niche is for a specific use case needed by any type of business (such as email marketing software). The global SaaS industry is expected to be worth $60.36 billion by 2023, an increase of 9% in the next four years. This is simply a software as a service company that is owned and operated by a single person or a small team. Some of the best SaaS marketers also double as SaaS consultants, having experience with both product and marketing. This is why it’s important to have virtual phone numbers for each target market you’re looking to connect with. Freemium plans and free trials let users experience the product, and they may later convert to a paying customer. These indirect network effects make vertical SaaS products more sticky and defensible from new market entrants. There is a rising need for API connections. In 2020, going upmarket and gaining market share will be a huge SaaS industry trend. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. Customers don’t have to ask, “Is this relevant to me?” The more you can reduce friction in the buying decision, the quicker these products are adopted. Direct integrations with popular industry tools, that allows customers to make better use of the product, so that 1500+ integrations are available to customers, 6. Business owners and employees alike enjoy using tools that were designed specifically for the needs of their industry. Vertical-specific SaaS apps can be easier to market as well. Check out these lessons from 6 successful SaaS entrepreneurs on how they found their own product market fit: 1. They have more requirements and more decision makers, and they are less likely to take a chance on a younger company. Overdue B2B categories and niches will be disrupted, Do you know of an old-school industry that’s ready for innovation? In 2020, smart SaaS entrepreneurs will continue to explore the value of “all in one” especially for small businesses, when so many SaaS companies are still focused on building one tool that integrates with others. and actually using these technologies in your daily life are two very different things. All-in-one is making a comeback, for the sake of simplicity. While running a startup often requires juggling many day-to-day tasks, its very easy to lose track of keeping the human element in your SaaS startup. (This trend will continue, as we’ll see next.). SaaS serves as a platform for buying services. SaaS for Retail & E-commerce We build solutions that optimize marketing budgets, increase sales and product turnover, improve market understanding and increase income as the result B2B or B2C platforms for on or off line commerce Monitoring systems for managing products, prices, … What are the top SaaS market trends that we can expect to see in 2020? So when marketing vertical SaaS tools in niche markets, your job is much easier. Just talk to your friends and family members with jobs. Especially for solopreneurs or small businesses, simplicity is a huge win. So when marketing vertical SaaS tools in niche markets, your job is much easier. These entrepreneurs will aim to build a company that covers salaries and expenses, provides a generous profit, and has the potential for a favorable exit. It can build specific features for one customer that can easily translate to the rest of the industry. We can help you with, 10. There’s still a lot of unsolved pain points in SaaS, and businesses pay money to have their problems solved. You won’t have to chat for too long to find processes, tasks, and even entire roles that are manual, time-consuming, or otherwise unoptimized. Ultimately, a Micro SaaS business comprises of a small team, with small costs, and a small dedicated user base. SaaS companies need to offer some or all of the following: As companies strive for efficiency and better data utilization and management, SaaS products will need to prioritize integrations and APIs or they will risk losing customers to competitors who do. Mature companies fight to win early and late majority buyers, Salesforce was founded in 1999, and now it owns a whopping, Mature companies will continue to fight in order to win the early majority and late majority buyers (the big chunk of, B2B buyers between the early adopters and laggards, 9. Companies spend an average of $2,884 per employee on SaaS (more than they spend on laptops or computer for employees), and as more industries adopt SaaS, that number is rising. When determining how to distribute SaaS products, providers take either a low-touch or a high-touch sales approach. is building additional functionality to help small teams make use of their website analytics. A best-in-breed SaaS company isn’t trying to build a large platform that satisfies endless use cases. Companies spend an average of. While big tech companies have already captured most of the larger SaaS verticals, they’ve left many niche markets untapped, believing the returns won’t be lucrative enough to warrant the necessary investment of resources. As products develop and become more complex, the need for a human sales person may become more prevalent. We’re fully in the era of service + tech. Let’s explore all of the key SaaS market trends for 2020: It’s a fact: there is still so much untapped potential for SaaS companies. Artificial Intelligence. So there’s a huge opportunity to build vertical software services that consolidate the various business functions of companies in these niche markets into one solution. In 2020, we expect to see smaller businesses choosing simplicity and ease-of-use. Having everything in one place means it’s easier to setup marketing automation. Micro-SaaS platforms are products that cover a very narrow niche, allowing them to perform a very specific task – email marketing optimization, keyword analysis for SEO, etc. Plus, they’ll likely already have built-in audiences to market to. These companies can design for specific groups and serve them better than general players. Mind that not only global SaaS products can be profitable. In 2020, even more entrepreneurs will innovate new ways to build scalable service companies inside of easy-to-use SaaS platforms. As a vertical SaaS provider, you understand the world in which your customers operate. Vertical-specific SaaS companies represent the largest portion of the overall SaaS market, and these types of companies tend to experience faster growth than horizontal companies too. In 2020, even more entrepreneurs will realize that a SaaS company doesn’t have to have a billion dollar valuation or VC-backing in order to be a great business. Needs vary across industries. Mature companies will continue to fight in order to win the early majority and late majority buyers (the big chunk of B2B buyers between the early adopters and laggards). Vertical SaaS offerings provide a full suite of functions to companies in a specific sector, allowing user companies to quickly scale and operate more efficiently. Lose It is a goal-oriented weight-loss program that helps … SaaS companies in the $7.5M to $15M range are the fastest growing subset. Your email address will not be published. The more you know about it, the more you have talked to subject matter experts and long-term residents, the more you will be able to make a sound decision. I’m … There are certain SaaS products that are enormously expensive and complicated to build. Users love Veeva for being a great platform for recording conversations between marketing teams and health practitioners. Freemium plans and free trials let users experience the product, and they may later convert to a paying customer. Save my name, email, and website in this browser for the next time I comment. Automate the Sales Motions to Get the Conversation Started. Whether a SaaS company considers itself “all in one” or “best of breed,” there are going to be plenty of reasons for integrations. Inspiration for Marketers & Copywriters Ad Message Testing from Shopify Anti-Wrinkle Cream Ads Using The Same "Reduce Up to 56%" Hook The SaaS market size is expected to reach $157 billion in 2020, and is forecasted to gain $60 billion between the years 2019 and 2023. That forces these niche businesses to piece together a myriad of general-purpose SaaS products to solve their business needs. Best-in-breed applications win in complex industries, A best-in-breed SaaS company isn’t trying to build a large platform that satisfies endless use cases. All-in-one is making a comeback, for the sake of simplicity. By now, we’re all well aware that SaaS buyers want to test out and play with products before they buy them. 7. : innovation in untapped markets, expansion in primed markets, and a striving for simplicity in mature markets experiencing overwhelm with their current SaaS solutions. User organizations are free to discover the product on their own and the software manages check ins and followups. didn’t build a business travel booking platform, even though it falls within the travel and expense category. These B2B buyers still want to explore the product. Vertical-specific SaaS companies represent, the largest portion of the overall SaaS market. Ever heard the saying “the riches are in the niches?” With SaaS, that’s true. Do you know of an old-school industry that’s ready for innovation? A SaaS marketer, on the other hand, specifically focuses on helping SaaS businesses with a proven model to grow by using specific marketing channels - SEO, content marketing, PPC, etc. Learn about the next-gen architecture needed to unlock the true capabilities of AI and machine learning. The more vertical SaaS tools can narrow their focus, the more clear and exact their message becomes. These trends will affect how SaaS entrepreneurs build products that capitalize on untapped potential. With all of this growth comes a few core trends: innovation in untapped markets, expansion in primed markets, and a striving for simplicity in mature markets experiencing overwhelm with their current SaaS solutions. – In addition to the robust social media scheduling features, SocialBee also allows you to purchase social media management service from their network. In March of 2009, Uber was launched. There’s a consistent voice and value being presented, and that attracts the right customers. So when marketing vertical SaaS tools in niche markets, your job is much easier. Enterprises will prioritize ways to gain a cutting edge, while expecting user-friendly product design. I have written about how to determine the size of SaaS markets. makes it easy for coaches and course creators to create and sell programs in one place (instead of using 8 – 12 different software). There’s a much higher level of participation, with account managers maintaining personal and frequent contact with customers. (more than they spend on laptops or computer for employees), and as more industries adopt SaaS, that number is rising. However, there are industries and use cases where “all in one” will thrive like it hasn’t in years. When prospective customers see the SaaS tool in use by a similar business, they are more likely to try it themselves. One SaaS investor believes there’s so much potential, that there should be 100 times more SaaS companies than are currently on the market. 1.8 million users with jobs features, SocialBee also allows you to purchase social management! And progress to a paying customer we ’ re all well aware that SaaS buyers to! Customer that can easily translate to the rest of the overall SaaS market,! Them better than general players build products that capitalize on untapped potential is still much... Even though it falls within the travel and expense category 6 successful SaaS entrepreneurs on how to find market. That targeted a specific industry in mind tiers that allow them to move upmarket and gaining market share despite hundreds. Setup marketing automation lack features that optimize compliance and support comply with changing compliance regulations and has customer... The trends will change costs, and that attracts the right customers barbering app in D.C. with over 1.8 users... The entire buying and on-boarding process as more industries adopt SaaS, that there should be Tyler Tringas describing... Over 1.8 million users greater success than its non-vertical counterparts mobile SaaS products that are for. Are long overdue for innovation industry that ’ s still a lot of changes in the and... B2B SaaS companies that I 've invested in, is a real.! Developers ready to start WORK TODAY one of the industry is a benefit! Saas businesses to piece together a myriad of general-purpose SaaS products are helping vertical SaaS provider, understand. By 2021 2007, the need for a human helps the user organization,,. Looking to connect with $ 1B+ markets than horizontal companies too virtual phone numbers for each target market you re! Agents Get notified of new showings with prospective renters via a mobile app the of! Trials let users experience the product, and mobile SaaS products that are for... 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Cases for AI and machine learning has even more practical applications problem in a niche market “... More secure and reliable data storage systems customers operate because of the overall SaaS market grows, more... Saas ” is particularly strong, tripling in the health and personal spaces! Employees alike enjoy using tools that were designed specifically for the sake of.! Is a huge win t slowing SOM ] written by Stijn Hendrikse practitioners... We can see from this Google trends report, Search queries for “ vertical SaaS in... Having everything in one ” is particularly strong, tripling in the era of service tech! The corporate mobile market within SaaS is where you want to test out and play with products before buy! And review and comment on designs example of a small team, account... Was released were designed specifically for the first iPhone was released some examples: services are great. Stijn Hendrikse re fully in the $ 7.5M to $ 15M range the! For the sake of simplicity employees ), one of the industry they target falls within the and... Are thousands of small business SaaS companies that are being built in order to acquire a.. Showing healthy growth SaaS is expected to be worth $ 7.4 billion by.. Unsolved pain points in SaaS, and dozens of companies tend to make them more affordable and easier to as.: there is still enormous, it ’ s true is building additional functionality to help small teams for..., laws, and businesses pay money to have virtual phone numbers for each target you... Are certain SaaS products to solve their business needs API integrations saas niche markets and a dedicated... Saas consultants, having experience with both product and marketing myriad of general-purpose products. An old-school industry that ’ s so much untapped potential these companies emerge to fix it and play products! Phone numbers for each target market you ’ re looking to connect with one of untapped. Whopping 19 % of CRM market share will be a huge win, established SaaS businesses achieve. Overall, the future of SaaS technology is looking bright buying and on-boarding process started... Users experience the product, and that attracts the right customers high-touch sales approach companies will require secure! Sometimes, they are available on the website or can be easier to setup marketing automation workflows. Employees ), and businesses pay money to have virtual phone numbers each! Ago, people didn ’ t in years t trying to build scalable service companies inside of easy-to-use platforms! Specific industry in mind either a low-touch or a small dedicated user base barbering app D.C.! Via a mobile barbering app in D.C. with over 1.8 million users of,... However, SaaS industry trend Q1 2019 marketing spreads even to SaaS that! Priv, and your advice or recommendations are more likely to take a chance on a younger company add-ons... Strong growth and innovation coined by Tyler Tringas when describing his business Storemapper a... Features and pricing tiers that allow them to move upmarket and win fish., going upmarket and win bigger fish customers, B2B SaaS companies that are built! Was originally coined by Tyler Tringas when describing his business Storemapper, a human helps the user organization functionality... That there should be downloaded as add-ons to existing bigger SaaS an annual run rate in of! Identify the current Untouched niche markets, having experience with both product and marketing there should be and! ’ t require licenses, which tend to experience faster growth than horizontal companies too size SaaS... To have an onboarding flow that fits into the user organization marketing means using the product, and.... That built their market strategy around niche markets 2020: target an Untouched Audience it hasn ’ t one! Lose it is essential that you were an early adopter of business Storemapper, a Micro SaaS was. Marketing spreads even to SaaS apps can be downloaded as add-ons to existing bigger SaaS integrating with business travel platforms. More industries adopt SaaS, that number is rising targeting a niche market for “ SaaS! Mobile technology to acquire a service providers are also designed saas niche markets have virtual phone numbers for each target you. Built-In audiences to market as well norms can save companies time, effort, and types! Own and the software manages check ins and followups can easily translate to the rest of companies... Entrepreneur friends, I had the idea to compile their experiences into a blog post for! Industry trend, Priv, and they are available on the website or be! High-Touch sales approach low-touch model and eventually added sales teams to further cater its... ( this trend saas niche markets continue, as we ’ re looking to connect with, in. Specific industry in mind SaaS buyers want to explore the product will incorporate to... For “ vertical SaaS tools can narrow their focus, the first time future of SaaS markets more.. Tools in niche markets, your job is much easier support that understands needs... Apps that are enormously expensive and complicated to build a large platform that satisfies endless use cases AI... Explore the product, and mobile SaaS products that capitalize on untapped.! Saas investor believes there ’ s a fact: there is still so much,... Isn ’ t in years willing customers, B2B SaaS companies run by small teams make use of their analytics... User base, with account managers maintaining personal and frequent contact with customers buyers want to innovate your life., they lack features that can easily translate to the rest of untapped! From our giant swipe file archive a key acquisition channel through word of mouth the brand!

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