“Is there such a thing as too much choice?” I think this question is one we should stop asking because obviously, the internet has given definite answers. From recent research, cognitive functioning is weakened to a great extent when people are told to choose between 12 options that are alike. There tends to be more difficulty in making a decision as to the number of alternatives increases. This phenomenon is commonly known as choice overload or “over choice.”
SaaS businesses will face four issues in 2019, but the major one will be Saturation or “SaaS pollution.” In this article, we will take a closer look at each of these issues, but our focus will be on what steps SaaS business owners can take to overcome the challenges each of these issues may throw at them.
1. (Saa) Saturation
In an industry survey carried out by Chiefmartechback in spring 2018, 6,829 SaaS companies were found to be in the marketing space. During the same period, business software review site G2 Crowd published listings of 34,727 software products across 745 vertical industries. It is almost impossible for even the most basic of SaaS products to be without stiff competition.
Our Tip – Focus on Reviews
Out of the three reviews sites, Capterragets the most traffic and is monetized basically through a Pay-Per-Click (PPC) advertising model. The model works in this way. Software vendors pay to access premium placement, multiple links to their landing page, campaign analytics, etc.
Consumers can also be paid to test and write reviews of software in the form of gift cards on Capterra and other software review sites. However, this method has had lots of controversies linked to it.
Another issue that is affecting SaaS businesses in 2019 is hyper-specialization. This issue is entirely related to saturation. Hyper-specialization happens when individual business functions are not best served by a single product but by many-frequently provided by diverse vendors.
The issue of hyper-specialization is made worse by the number of solutions available for any given problem. This does not only lead to saturation if you’re a business owner looking to utilize a best-of-breed application for a variety of business processes, it means you’ll need to use a separate product for each.
Our Tip – Try Public APIs
One of the most efficient ways of making sure your customers can easily integrate your SaaS app with other solutions is by making the Application Programming Interface (API) public; After doing that, you then provide users with best practices, code examples, and extensive documentation. If your SaaS must be customized, access to your API will be essential. So, you allow your customer’s development team to customize it better and integrate it with all the other apps they employ.
3. Location of Data and GDPR
Before the announcement of the General Data Protection Regulation (GDPR) of the European Union in 2012, which became effective on May 2018, the users and owners of SaaS business were overlooked for failing to pay attention to the physical location of customer data. Don’t forget that one of the benefits of the cloud is its availability.
Our Tip – Follow the guidelines
This piece may not present more detailed advice, but generally, a company should take appropriate steps to ensure that when they have customers in the EU, then, GDPR compliance is a necessity. Some of the essential steps a SaaS business owner can take include:
- Appoint a Data Protection Officer (DPO) that would respond to complaints concerning GDPR by the masses.
4. Data Security
In the SaaS world, the most popular data breach happened in 2012, and it recorded 68 million email addresses of Dropbox users stolen. It took Dropbox four years to confirm that the passwords controlling those email addresses were also compromised.
Our Tip – Follow the GDPR Standards and implement the measures listed below
In a situation where trendy elections and social media such as Facebook, Twitter, or Quora get hacked frequently, individuals and enterprises must have security concerns, and that becomes an obstacle to all vendors of SaaS must strive to overcome. When the above GDPR procedures are implemented, and customers are informed about new artificial intelligence techniques to overcome it effectively.