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SaaS Application Development: Step-by-Step Guide

Updated : Oct 22, 2024
How to build a SaaS application

Quick Summary: Are you someone who has been running an organization for a brief period? If yes, you must be well versed that the digital transformation revolution is underway. To meet the 21st-century marketplace, businesses must ensure that they are up to date, no matter what!

Do you wonder what the best ways to keep up with digital transformation are? Other than finding the right technology, helping workers through the transformation, adjusting the culture, expanding the customer base, and listening to the team's feedback, there is something more to it!

You need to understand that the core element of digital transformation is cloud computing.

Every organization's digital transformation journey requires the cloud. The transfer to the cloud can happen in several ways depending on various elements, such as the process's size, uniqueness, and complexity. The most popular type of cloud computing is SaaS.

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The function of SaaS is to deliver on-demand computing services through applications over the Internet! It helps in enhancing scalability, accessibility, and reliability while eliminating overhead and maintenance costs. Building a SaaS product is now a basic requirement for most mobile app development companies. The global Software as a Service (SaaS) market is projected to reach a revised size of US$ 234900 million by 2028. The data must have got you excited, right?

In this article, let's explore more about SaaS app development.

On This Page
  1. What is SaaS?
  2. Why Now is the Time for SaaS Application Development?
  3. Why is SaaS App the Key to Rapid Business Growth?
  4. Types of SaaS Applications
  5. Mistakes to Avoid While Creating SaaS Apps
  6. Step-by-Step SaaS App Development Procedure
  7. Challenges of SaaS Application Development
  8. Conclusion
  9. FAQs

What is SaaS?

Have you been thinking about what is a SaaS product? Well, SaaS (Software as a Service) is a cloud-based solution that provides ready-made software to customers through a mobile app or web browser. The customer does not need to purchase the software and install it on their computer. Customers typically subscribe to the software on a pay-as-you-go basis, often through a monthly or yearly subscription fee. The user also does not have to maintain the software, as it is automatically updated with new features and security fixes. Using this service, customers need not install or configure the app as the software provider takes care of it. This must take you to the idea of software maintenance, right? Want to explore more about why software maintenance is important? Read our blog and gear up!

There are some differences between building a SaaS product and other traditional products. When a SaaS product is launched, a SaaS development company works continuously. It is necessary to update services regularly to get more users and lead the competition. Companies like Amazon and Salesforce have dedicated development teams to keep the solution updated. Do you want to learn more about the benefits of SaaS? Read our blog about the eight benefits of SaaS.

It is all about SaaS application development, but do you wonder why it is crucial now? Let us look into the same.

Why Now is the Time for SaaS Application Development?

If you have been surfing the web with, "what is SaaS application development and why is it becoming popular?", In that case, you need to know that SaaS application development is becoming more popular due to many factors, such as the Internet being a globally accessible medium, with mobile devices providing an additional access channel. Furthermore, the concept of B2B SaaS applications and B2C SaaS applications are very recent solutions.

Now, to the query: what is SaaS application development?

SaaS application development is a process of creating software applications that are delivered to users as a service over the internet. Instead of installing and running the application on their local devices, users can access and use the application through a web browser or a dedicated client.

Many benefits can be obtained from software application development using SaaS. For example, the flexibility of SaaS applications can provide businesses with a host of options that can be used to enhance their operations by providing them with new functionality.

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Why is SaaS App the Key to Rapid Business Growth?

SaaS solutions have greater potential for improving businesses. It is the right choice for both mobile application development and web application development. Noted below are a few reasons why SaaS is the key to rapid business growth:

  • Cost-efficient: SaaS services are less expensive in the long run because users don’t have to purchase or maintain expensive hardware. SaaS solutions come with paid subscriptions. Hence, the company pays only for the required functions; they can stop payment if the services are no longer required.
  • Reliable: As SaaS is a cloud-based solution, it is more reliable. Cloud is a network of services placed worldwide. So, even if a server is down, the SaaS products continue to work.

Benefits of SaaS App Development

  • Scalable: If a business has subscribed to SaaS, it can pay for the services needed. However, in case of a change in requirement, the subscription plan can be upgraded within a few minutes.
  • Secure: Security is a major challenge in cloud-based services. However, the system is secure, protected, and encrypted.
  • Seamless Access - SaaS apps differ from traditional custom software development services in that they are easily accessible. You just need stable internet to access these apps wherever and whenever possible.

This is how SaaS can help in rapid business growth, do you want to learn more about why do you need a SaaS application for your business? Read our blog.

Now let us have a look at the types of SaaS applications.

Types of SaaS Applications

Software as a Service (SaaS) is becoming popular for many businesses. Software that runs on a cloud or internet-based platform it's been designed to have minimal hardware requirements and allow its users to access it from any location with an internet connection. To help you decide if this is the right application for your business, here are some of the most popular types of SaaS applications:

  1. Customer Relationship Management (CRM) - Organize customer data, monitor customer interactions, gather company analytics, and automate sales.

  2. Enterprise Resource Planning (ERP) - Integrate numerous features into a comprehensive system to boost productivity and information sharing.

  3. Accounting Software - To ensure your company expands as it should, it keeps your finances structured and accurately managed.

  4. Project Management Software - It can assist in developing resource estimations and planning, organizing, and managing resource tools.

  5. Email Marketing Software - It allows customers to make, send, and track emails to their subscriber list.

These are the different types of SaaS applications. Now, let us look at the list of mistakes that can be avoided while building a SaaS application.

Mistakes to Avoid While Creating a SaaS Application

When you are looking forward to creating an app, you need to know that a new SaaS product's development presents a variety of difficulties. However, a successful SaaS marketing strategy can be distilled down to creating a sound plan, foreseeing any obstacles, and adopting safety measures. Here is a list of things you can avoid while developing SaaS applications.

  1. Inadequate knowledge of the SaaS business model

  2. Unaware of your market

  3. Poor SaaS marketing strategy development

  4. Unsure of how to set the price for your SaaS product

  5. Leaving out customer feedback

  6. Inadequate client onboarding procedure

  7. Not taking care of your customers

  8. Lack of SaaS product development knowledge

With this list, you can stay ahead with the tech difficulties you might face while building a SaaS product. Most of you must have a question regarding the cost of building a SaaS application. Well, the aspect of the cost depends on the end user completely.

Multiple factors need to be considered when discussing the SaaS development cost. The list of factors includes the complexity of the application, design, programming, maintenance, and many other factors like the location of the app development company, the developer's per-hour charges, and the tech stack. Thus, this is how the cost factor will be resolved; if not, you can speak to our experts and get a quotation for the same.

By this time, you must also have clarity on what kind of SaaS application you want to develop; if not, then consider looking at the following:

Technical characteristics of SaaS application development

A strong SaaS program needs to function flawlessly in the areas listed below:

  • Databases
  • Scaling
  • Frequent updates
  • Third-party integrations

Non-technical characteristics of SaaS application development

Being a reliable piece of Software is only half of your SaaS's success. The other half is making it user-friendly, thus guaranteeing that your remedy includes the following:

  • Market fit
  • Client acquisition process
  • Various packages

Now that you have an idea of mistakes that must be avoided and the kind of SaaS application you want let us dive into the steps of developing a SaaS application.

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Step-by-Step SaaS App Development Procedure

Building a SaaS product is not the same as regular mobile app development. The key difference in developing a cloud-based solution is the demand for a reliable cloud-based service provider.

Amazon Web Services (AWS) is one of the most popular providers offering several tools for SaaS developers.

Let’s learn more about SaaS application development. Remember, it needs time and energy to learn what customers demand.

Step 1: Add Value to the Solution

SaaS products can only gain users when you offer a valuable solution. Customers weigh the value of products before they subscribe and pay for it.

For instance, some mobile apps offer a 14-day free trial. It is an effective way to help customers understand the value of the app and its benefits. Moreover, you could also offer single user payment for the platform. This offer can be convenient for them.

Step 2: Competitor Analysis

To start SaaS application development, you should know the market thoroughly. You must understand the target audience and analyze your competitors, their solutions, and business models, etc.

Market research is important to realize how to develop the SaaS application that could stand out from all the existing products in the market.

Step 3: Gather the Necessary Requirements

Before you start SaaS app development, consider the following project requirements:

Have a list of features ready. Divide the features of the app categories – basic features and advanced features.

Basic features or MVP is the features needed to satisfy user requirements. Advanced features add exciting and engaging functions.

Some of the important SaaS application development tools are functional tools, analytical tools, and management tools. Each of these tools has unique roles to play.

Step by step guide for developing SaaS Apps

Step 4: UI/UX Design is the Key

Creating a brilliant UI/UX design for the SaaS product is important to make it appealing to users. As you know, users are spoilt for choice. They do not want to stay on apps or websites with unclear and unattractive designs. To make the app more profitable, come up with a user-friendly design.

Remember, the design process requires both time and money. It begins with the wireframe or the schematic placement of different elements on an app screen. Usually, wireframes are monochrome, showing the screen connection.

After that, designers add a visual style to the app. they play with colors, fonts, and graphic elements.

Designers create app screens and conditions. Then, the prototype. Finally, they hand over their designs to the developers.

Step 5: Pricing

Pricing is also a strategy. It plays a crucial role in any SaaS product. As a subscription plan is not a surprise anymore, you should come up with multiple plans to meet and exceed user expectations.

Besides, it would be wise to add different free functions. You can also offer a free trial.

SaaS providers offer subscriptions for several numbers of users, from 3 to 1000 accounts.

Step 6: Tech Stack

It is very challenging to choose the right technology for a SaaS app. You have to justify the project requirements, design, and features to the mobile app development team. They can pick the necessary technologies for SaaS app development. Make sure the solution is updated. Choose tools that ensure scalability.

These are the steps that you have to follow to develop SaaS applications, or a SaaS project. Now that you understand SaaS and the steps to build a SaaS product, let us look at the challenges of SaaS application development.

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Challenges of SaaS Application Development

There may be many difficulties on the technical side of SaaS app development.

#1: Scalability

The number one challenge is scalability.

To create a successful SaaS product, you should have a scalable tech stack. Complex solutions should be customized at each layer. Hence, developers must consider these aspects:

  • Interface
  • Integrations
  • Page templates
  • Features
  • URL structure

Scalable products are attractive to users. It brings value to the app in the long run.

#2: Reliability

For cloud software maintenance, the AWS SaaS architecture provides reliable service. AWS is responsible for the hardware and keeps a backup of all data. It’s a major data of using the SaaS solution.

Your users should rely on you and trust your services completely. Hence, you should pay attention to details such as UI/UX design, logo, color, etc.

Challenges of SaaS Apps Development

#3: Security

SaaS solutions work with different processes and business segments that keep sensitive information. The responsibility for user data rests with the services.

Sensitive information like personal data, bank details, customer information, and other data may leak if security is not guaranteed. It may lead to a loss of customers and trust.

#4: Third-party Integrations

SaaS applications have third-party integrations such as PayPal, Google Maps, etc. It is a big responsibility to maintain this. Only a proficient mobile application development team can develop such a SaaS application. Moreover, third-party integrations dictate the final price of the product.

ConclusionHire SaaS experts from Radixweb who have the knowledge, expertise, and proficiency in handling SaaS product development. Owing to rigorous training and client project exposure, we have ensured that our team is abreast of the latest trends and knows the ins and outs of SaaS app development. Our robust SaaS services can bring about a radical disruption in your business. Contact us to know how.

Frequently Asked Questions

How long does it take to create a SaaS app?

What are the key SaaS features you should be tracking?

What are the differences between SaaS and standard software products?

What is SaaS development framework?

Why is Radixweb best for SaaS development services?

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Jaydeep Patadiya is a AVP - Sales at Radixweb and always has the answer to- what's on the mind of the customers? In an industry that is fundamentally changing, he helps customers make the right decisions by connecting the right dots and adopt new technologies. Beyond work, he prepares for upcoming marathon races.