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Transforming the approach for SaaS businesses

by Mike Jones in Other Cat 22/01/2020

SaaS is a reputed business model with proven success and has become a popular tool across many industries. The innovative model enables businesses to work directly with customers or quite commonly, use a separate partner. By using a partner, these companies effectively ‘own’ the customer relationship and the attached data, probably the most critical part of any business.

Many SaaS focused businesses are realising the necessity of creating a direct relationship with the customer, providing the business with greater control and further options. The transition from the regular SaaS business model involving a channel partner to a multi-dimensional platform positions the SaaS company at the core of the model and in a more controlling position. Whilst believed to be more effective, the multi-structured approach means SaaS companies need to establish connections with each part of the model and view each as a customer that has requirements, this incorporates the channel partners and the end customers. 

Changing the approach

Generally, small SaaS businesses have developed specific agreements with their customers or suppliers as the business has developed. In nearly most instances, the SaaS business remains hidden to the customer using the service via their channel partners.

To deliver a successful service, SaaS businesses need to consider their business from a B2B and B2C perspective. Industry analysts believe the reshaping of these relationships represents the biggest challenge for the SaaS marketplace, involving meeting the needs of all members of the network.

Each section of the chain is looking to expand and the SaaS business needs to capture the areas where they can deliver and support each business in reaching that goal. To remain successful, SaaS businesses need to be adaptive and capable of transforming their existing models. Making the transition to a modern business model is likely a step that many companies need to make to remain competitive in an environment dominated by core technology.