When good SaaS goes Bad

Ever seen how a good company can go bad very quickly (Read wikipedia entry on RIM for a quick history lesson). It’s even faster if the company is SaaS. Without any tangible investment into software, IT or hardware and with no long-term contracts, it’s very easy for customers to ditch SaaS when it starts to sour.

So as a SaaS vendor there are 4 things you’ve to look out for:

Software Feature Creep

Stay away from adding too many bells-and-whistles into your product. As you grow, you list of feature request grows. That’s a great way to drive innovation. But continuously ask: Does it simplify? Will it be used by most? Does it deliver value?

Selling Solutions rather than SaaS product

Think twice about shifting focus from a task specific tool to selling ambiguous solutions. This is very true for simple SaaS tools that feel inferior to bigger, more complex competitors. Most SaaS tools get successful because of a succinct and fine-tune value proposition. Don’t muddle it up by selling ambiguous “solutions”.

Slow Software Performance

Don’t forget to upgrade your architecture as you grow. And just because you host your service at Amazon doesn’t necessarily mean your servers are optimized. Do your homework and make sure every page load is lightning fast.

Poor SaaS Service

And don’t forget good customer service. Your customers probably came to you because of poor service from other vendors. They can just as easily replace you.

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Zaki Usman

Hello, I'm the founder and CEO at ShoutEx. I like to blog about marketing, mobile and web topics. Feel free to connect with me on LinkedIn.

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