One of the few benefits of the pandemic is that it has accelerated our progress towards the future. Think telemedicine, virtual work, on-demand delivery – all of which were catapulted into development and even implementation due to the pandemic.
Covid-19 has certainly impacted several technologies, more specifically, SaaS executives around the world are asking themselves one question: how will the pandemic impact the future of SaaS?
While you may be thinking that solutions like SaaS and cloud are already what is needed for the future, in reality, most SaaS businesses actually adopt the product model of the future (or the cloud) but still employ internal practices of the past.
While most SaaS executives are paying more attention to the fact that amid the pandemic, churn, retention and customer success are critical, SaaS technology is developing and thriving rapidly. Here are 3 reasons why SaaS will impact the future.
Customer experience should be at the center of business offerings
A factor that unites most successful new businesses ranging from unicorns to cash cows is their cunningness when it comes to putting product and customer experience at the core of their business offerings. This enables them to measure and optimize churn from the get-go.
A clear-cut example of this is how early startups often employ customer success managers way before they employ a salesforce. These companies are innovating, and other more traditional businesses can certainly learn a thing or two from them.
Customers’ expectations are steadily increasing
Current cost pressures are leading management teams to raise the bar when it comes to what they can expect from a vendor. SaaS executives have become more oriented towards outcomes, and more tangible results. They are now more interested in the value that a new technology might bring forward. Post-pandemic, clients are going to hold vendors accountable for a new standard when it comes to SaaS models.
Recurring revenue streams must be nurtured
Management teams are learning that revenue doesn’t simply recur; growth requires investment. This can be witnessed by increased churn rates and the fact that most companies project Gross Renewal Rates to drop – even companies that sell to large enterprises with more lucrative deals. Enterprises are realizing that the easiest way to grow is to nurture their client base. Several companies are working extensively on customer success and using it to drive net retention.