Mistakes to Avoid When Starting a Mobile SaaS Busines
technology

Mistakes to Avoid When Starting a Mobile SaaS Business

One of the most common mistakes that many businesses realize is setting low rates for SaaS products.

Mistakes to Avoid When Starting a Mobile SaaS Business

Starting a mobile SaaS development company is not so trick track if stepped with the right knowledge. The business startup might face some risks with Software as a Service. Risk-taking is the key start for any business and mistakes are inherent when starting a mobile SaaS business.

SaaS business treads along with innovation and feasibility. The Software as a Service enables businesses to leverage additional advantages, which are otherwise not available in traditional enterprises. It is a low-cost platform for starting the infrastructure and comes easier and convenient with timely software upgrades.

SaaS offers a win-win situation for both seller and buyer, but still, the question “why few SaaS models fail?” needs to be addressed.

Here we will be discussing a few common, but deadly mistakes that need to be avoided while starting a SaaS company or business.

Deadly Mistakes That Most SaaS Startups Make

If you are wondering ‘how to start a saas business,’ well, we have listed some common problems in saas startups that can take away the crown of being one of the top saas companies.

1. Pricing SaaS Product Too Low

Lowering the SaaS product pricing makes a negative impact on the reputation of the solution. Lower the prices, lower the quality of customers.

The worst scenario for any business is when your customer pays you next to nothing. The pricing depends and varies as per the Geolocation; however, it can still be priced at a minimum cost of $15-25 per month.

The lower prices of your competitors intimidate the new startup, but if your product is better and you offer a unique solution, it solves the real issues, and then the customer does not mind spending.

Example of SaaS-Based Product Pricing

starting a saas business

2. Binding Customers in Package

The enticing feature of SaaS is its flexibility cost-effectiveness. Here the users pay only for what he has used. This is why people consider SaaS instead of traditional software. When you lock customers in a package, you kill the values of SaaS.

Instead, the customer must be given the flexibility to upgrade and downgrade the service as per needs and consumption.  

3. Leave Unworthy Metrics

You should always understand which metrics are useful. Not all metrics help determine your business health. Therefore, you must measure the:

 

  • Recurring revenue
  • Cost of acquiring customers
  • Churn rate.

Metrics such as website traffic and brand awareness stats are a good marketing strategy for a SaaS startup.

4. Freemiums are Unwholesome

The worst mistake while starting the SaaS development company is to offer Freemiums. Freemiums not only make one-time mistakes but also drains out the valuable resources. However, many successful business models are offering freemium services and it is always possible to start similarly.

However, it is strenuous to start a freemium company than to make a subscription company. The dream of millions of users working over your software platform is a good dream to think of. However, pay attention to the support resources engaged in free user plans. 

The same you can implement by offering a way for customers to pay at the end of the trial. If your product is beneficial, you will get the subscriptions and the customer will positively pay at the end of the trial.

5. Not Collecting the Pixel Data

Usually, whenever you visit a website, you start seeing the ads of that website everywhere. Retargeting is nothing but targeting the customers, which have been to your website earlier. It is a very useful technique to target the customers and costs much less than the regular targeting of new customers. If the companies do not retarget, companies end up spending four-5 times more than the retargeting.

start saas business

It is always recommendable to have the FB retargeting pixel on the website; otherwise, you end up spending the money wastefully. Whether if you are not planning now to run the ads, but in the future, you might think of running an ad. Therefore, collecting pixel data now is always profitable when starting a saas business. The method is free to set up and there is no loss. 

6. Listen to User Feedback

There are always a number of reasons why a mobile application development company must survey and collect feedback. A user uses the product for different realistic scenarios and therefore offers valuable ideas for different feature integrations.

Alongside this, a user can better understand the bugs and glitches. The expert suggestion is to always listen to your product carefully, look for patterns and then experiment the data in generating the market campaign.

Alongside, pay attention to the phraseology used by the customers to describe the product. It gives a broader sense of understanding of the results of your marketing strategy.

7. Retrieve the Self-Cancellation Ability

It is always recommended not to give the self-cancellation ability to customers. The businesses must know the reason for cancellation before leaving their customers. At first, this sounds not so good to remove the self-cancellation, but it is for some great reasons.

Expert mandates communication with customers, who wish to cancel the subscription. The customer has several alternative options; therefore, he possesses a candid comparison between multiple products available in the market. Asking them the reason to cancel can provide you with useful information.

Ask every customer, why they wish to leave and then make a spreadsheet or Google document with all the collected reasons for canceling the subscription. This gives you the real market reputation of your SaaS application development product and lets you see the pattern. If the majority of reasons for canceling the subscription are that your product is "laggy", you must pay attention to your product and you have a product issue. 

starting a saas business

Whenever they face any issue with your enterprise mobility services, they drop you an email for assistance in place of canceling altogether. You can provide the customer with a simple message like below when he wishes to cancel the subscription.

"Hello, Samantha. No problem, we will be glad to cancel the subscription for you. However, before this cancellation, would you like to provide us some suggestions to know how we could serve you better?”

It is only one aspect of removing self-cancellation ability. When the self-cancellation ability is removed, you can save customers from leaving. You get to start getting emails from multiple customers about what's and How's of your product.

Conclusion

Above are the few common mistakes that need to be avoided while starting a SaaS business. SaaS business indeed needs less starting capital, a low workforce, lower resources, and many different advantages, which an ordinary mobile application development company lacks. The cloud business models make the best use of innovative methods using applications, sponsored programs, and digital media.

For any of your thoughts or suggestions, feel free to comment below, and our experts will be more than happy to answer your queries.

Dev Technosys
Written By
Dev Technosys

Dev Technosys started back in 2010, is a perfect fusion of talent, endeavoring over 950+ successful Custom web development and Mobile application development projects. Since our outset, we cultivated a successful history of digital solutions for SMB's and enterprise level companies with utility-based software; designed for wide range of technologies.

mobile App marketing

A Complete Guide On The Best Mobile App Monetization Techniques

4 min read  

Turning an app idea into reality is just the first step, which is followed by a number of modules, one of which includes app monetization. It involves planning and strategizing on how to make money out of an app.The app monetization techniques are just not limited to the new app; if an app is al

mobile app development

Know About Crucial Web Developer Skills & Technologies For 2019

4 min read  

When it comes to web application development skills, the scope is progressive in nature and there is always a chance to upgrade. The same is the case with programming languages and other technologies. And that’s one of the main reasons why our team at MobileAppDaily has decided to write about

technology

Effective Tips to Deploy AI and ML in Running Application

4 min read  

Artificial intelligence is the capability of machines performing beyond conventional limits. The maneuvering of human capabilities and converting them into mechanical actions powered by code is entirely different from human capabilities.Artificial intelligence development removes the overhead of

technology

Most Common Mistakes in Data Loss and How To Prevent Them

4 min read  

Losing data can be the worst experience for business. The time taken to restore data can cost you a lot including money, customers, and reliability. Data loss happens when an individual accidentally deletes a particular file, or an external source corrupts a file. Viruses and formatting can damage y