2020 was a year of disruption for SaaS: teams from all type of industries (not only tech) started collaborating and working remotely, some of them for the first time. As a result, many processes were taken online, giving SaaS a great push. This trend is just beginning and we’ll see SaaS consolidating their position in the market more and more during 2021.
SaaS market was worth $105 bn in 2020 and is expected to grow to $141 bn in 2022. This incredible growth is just the reflection of SaaS ruling the software market and a sign of being the big winner of the future economy.
As we once heard “Software is eating the world”, we can now say “SaaS is eating Software”…
SaaS is often on the cutting edge of new strategies and technologies to attract, sell to, and serve customers better. To stay ahead in the world of SaaS, you have to be on top of the latest trends. 2021 is set to see a huge growth and further reliance of all companies on SaaS, and as always, SaaS will adapt accordingly with new and innovative strategies.
Here are the most important SaaS trends to follow in 2021:
1. AI and machine learning.
AI and machine learning has already been a growing trend in SaaS but as B2B customers catch on to the need in their own industries, it will become an even bigger focus for SaaS companies.
The amount of data that can be collected today is so extensive, that it makes much more sense to have AI analyzing it and making the most efficient choices based on results.
Many e-Commerce companies are seeing the importance of mass personalization in their sales and marketing strategies. Therefore, machine learning for marketing and sales SaaS products will become the key selling point that companies are willing to pay for. Learn more about how to automate SaaS customer engagement here.
North Face uses IBM’s Watson AI to help customers find the perfect product.
2. APIs and integrations.
In the past, and now even, switching to new tools is a big feat for companies. The bigger and more established they are, the more of a process it is to decide on and switch to a SaaS platform.
Companies want to know that their existing data will be protected and easily transferred through APIs without massive costs and time constraints. They want SaaS platforms to easily work with existing processes and the tool their team is already using.
Many companies looking for more SaaS options in 2021 are already using some SaaS tools they love. They want tools to work together through integrations. We will see many tools integrate to work with each other in 2021 to serve customers.
3. Data security.
Moving processes to the cloud bring companies a new vulnerability, which wasn’t such a concern in the past. That’s why SaaS are focusing more on more on data security and protection.
Online users are also more and more aware of data collection and they demand a transparent and clear policy about data collection and use. GDPR is a great example of this, and every SaaS company should have available documentation and processes to comply with this regulation. Learn more about how to comply with GDPR as a SaaS business here.
From 2021 onwards, we’ll see this trend deepen and also there will be more SaaS businesses exclusively created to attend special need of other SaaS and businesses on data security, privacy and protection.
4. Consolidation and M&A growth.
The SaaS market is becoming so competitive and profitable, that we start watching giant acquisitions and M&A movements.
Let’s think of the recent SalesForce acquisition of Slack. The $27.7 bn mega deal is an evidence of this increasing trend. We are not talking about small acquisition or garage-based startups, but massive transactions that will transform the market.
In addition, there seems to be a lot of fresh money from venture capital and investors that will pave the way for more transactions through 2021.
5. Education and leadership from SaaS companies and experts.
Because SaaS companies are on the forefront of emerging technologies and strategies, they are becoming thought leaders ahead of all other industries. Companies and individuals outside of SaaS are looking towards founders, leaders, and resources from SaaS companies for new strategies and thoughts on everything from sales, marketing, customer service, security, etc.
SaaS is the leader in the online space and helps many older companies move into the digital world effectively, so this leadership position makes sense. Hubspot and Spotify educate millions on marketing and sales in the digital work via their blog and free resources and their actions are followed closely by companies world wide.
6. No code tools.
As SaaS usage spreads along different industries, they need to pivot to different type of users.
SaaS are not only for developers or savvy tech users anymore: they are for anyone! That’s when no code tools become more and more important. No code tools don’t require heavy tech knowledge to use them. Their UX and UI is simple enough that anyone with internet access can use them!
That’s great because it democratizes access to SaaS tools, and widens the market more and more. Think of any small business who doesn’t even have an IT person: that’s no needed anymore thanks to the emergence of SaaS no code tools. And this also applies to SaaS using other SaaS: their marketing, sales or design teams can use no code tools as well. Learn more about why you should use no code tools for your SaaS here.
For example, Beamer is a no-code changelog you can integrate into your SaaS web app or website to communicate your latest updates and better engage users. Posting new updates is very intuitive and anyone in your team can easily do it. In a simple interface you can also add images or videos, include call to actions and activate push notifications.
This SaaS trend is going to expand more and more in 2021.
7. White labeling.
As more companies begin to use SaaS tools for front-facing activities on their websites, via email, etc., more are wanting SaaS tools to look native. SaaS companies will continue to respond by offering white labeling options for companies at a premium.
Many SaaS companies are offering to work with enterprises on creating customer interfaces and features for their needs on an even deeper level. Especially for e-Commerce companies whose entire process happens via multiple SaaS tools, this is important for a cohesive experience.
Beamer has the option to customize your Beamer feed to match your interface completely so it looks native to your app and website. Expect more personalization, or white labeling, in 2021, as more companies switch their processes entirely to SaaS.
8. Increased Customer Success.
One of the biggest problems for the launch and long term success of SaaS companies is churn. Keeping customers engaged and lowering churn rate is the main goal of Customer Success and a big focus for all SaaS companies.
Many companies will put more effort, staff, and budget into customer success for educating and supporting new users and companies. Their goal is not only to show value, but also to integrate their SaaS tools into their processes smoothly. Companies that learn to benefit from a SaaS tool right away are likely to stay on board for the long run and not churn out.
SaaS companies will create more educational material, improve onboarding and focus on customer success in 2021 to combat churn.
9. Increased focus on Mobile.
As more and more employees and business owners connect and run their companies from their phones, SaaS tools must adapt. SaaS platforms and tools are learning that users want mobile options to match the way they work on the go.
Many SaaS communication and task management platforms now have highly function mobile apps that are becoming the preferred method of their users. SaaS companies will have to create and continually improve the mobile versions of their tools and services to match the direction work is moving towards in 2021.
10. Micro-SaaS.
As mentioned before, all of the biggest “spaces” for SaaS are populated with around 9+ competitors. As a result, many emerging SaaS products will be “micro-SaaS” or smaller tools that provide one important function and are run by a smaller team, rather than large platforms. They may come in the form of add-ons, extensions, or accessories to other tools and platforms. This includes plugins and extensions for platforms like WordPress or social platforms like Instagram. There is a huge opportunity for tools like these in niche areas of the SaaS market. They can be deployed faster and managed and grown with few people and overhead.
SaaS is not only a leader in technology trends but business trends in general as the world goes completely digital. With new heights guaranteed to be on the horizon for SaaS, expect it to be an exciting year in developments that will undoubtedly influence many other industries. Stay tech trendy and let users and customers follow your latest updates with your own news feed built into your website or app with Beamer.
