Bespoke Software for SaaS
Custom code that grows as fast as your user base
Software as a Service (SaaS)
Software as a Service or SaaS has exploded in popularity over the last decade - particularly during the pandemic when remote working became the norm and organisations needed cloud based systems that could be accessed securely from anywhere. Many organisations have completely replaced their traditional, locally installed software that kept them tied to the physical office environment in favour of cloud based SaaS platforms that offer greater flexibility, scalability and accessibility opening up a mass of opportunities for SaaS companies.
If you're in SaaS, you'll be aware that there is no shortage of ideas in the industry, rather, the main challenge for the founders of SaaS products is usually the execution and when your whole business revolves around a single product - it simply HAS to be right.
Key characteristics of SaaS platforms
Key characteristics of SaaS platforms depend largely on their intended audience and the specific challenges they have been designed to solve. If your product is targeted at engineering companies for example, it's likely to include features focused around project lifecycle management, collaboration on technical designs and version control. If your platform is designed for finance it's features are naturally, going to be completely different. However, there are a number of defining characteristics that distinguish SaaS from traditional software delivery models:
Cloud based hosting
- Runs on remote servers in the cloud rather than on users’ local machines.
- Usually accessible via a web browser meaning no installation is required.
Subscription pricing model
- SaaS platforms are generally offered on a monthly or annual subscription basis.
- They may offer tiered pricing e.g. basic, pro, enterprise.
Multi tenancy architecture
- A single instance of the software serves multiple customers tenants.
- Each user’s data is isolated and secure but infrastructure is shared.
Automatic updates & maintenance
- The vendor is responsible for updates, bug fixes and security patches.
- Users can always access the latest version without needing to manually upgrade.
Data security & backup
- Centralised data storage with backups and disaster recovery.
- Often includes encryption, authentication and compliance standards especially when the target users are in regulated industries.
Rapid deployment
- Quick onboarding - users can start using the service pretty much instantly.
- There is rarely a need for complex installation or infrastructure setup.
Core challenges for SaaS companies
Like all industries, SaaS has it's own distinct set of challenges to deal with. Let's take a look at them in closer detail:
| The challenge: Customer acquisition and retention | For SaaS companies, growth comes from not only gaining customers but retaining them and that becomes harder to do as more options become available. Another aspect to this is that customers (rightly) expect to feel like they're getting value for money. What counts as value is more nuanced and will differ from customer to customer but things like regular updates, new features and consistent performance are common expectations to justify their ongoing payments. If you're the SaaS company in question...this of course comes at a cost to your business in ongoing development resource. |
| How to overcome it | The focus should be on deeply understanding your users and their needs. Strong onboarding, responsive customer support and clear communication of product value all help improve retention. Using data to track user behaviour can highlight where customers are dropping off, allowing you to refine the experience. Similarly, regular check ins with users which might be calls, surveys or emails allow users to provide you with regular feedback and help you identify where changes can be made. Meaningful updates rather than constant but low impact changes can also help to reinforce the value of your product. |
| The challenge: Infrastructure scaling | Another major challenge is scaling infrastructure and performance whilst maintaining the reliability of the platform - especially as user bases grow and demand becomes more unpredictable. Couple this with the fact that SaaS providers must ensure data security and regulatory compliance throughout which becomes much more difficult and complex as operations grow and it's clear to see why this can be a delicate hurdle to overcome. |
| How to overcome it | Investing early in scalable cloud native architecture and adopting practices including load balancing, monitoring and automated testing from the get go can save you a whole world of pain further down the line. Prioritising security and compliance as part of the development process as opposed to it being an afterthought can also help you avoid some pretty big 'spanners in the work' that reveal themselves at just the wrong time. |
| The challenge: How to price | Knowing how to price SaaS licenses can also be a bit of a minefield. Companies must consider a number of different elements including perceived value, competitor pricing, development costs - the list goes on. If you offer different tiers this just adds to the complexity. Most SaaS platforms also integrate with other off-the-shelf services which can be a key draw for clients. Setting up and maintaining these integrations should also be factored in. |
| How to overcome it: | If it's feasible to do so - adopt a flexible, value based pricing approach. You can test and iterate pricing models as you go rather than expecting to nail it upfront. Clear, transparent tiers that align with your customer's needs make it easier for users to choose the right plan. It’s also important to regularly review pricing as the product evolves to ensure it reflects the value being delivered. Offer flexibility wherever possible - do you offer certain features that some customers will never use? Don't charge them for those features. You could also consider offering usage based pricing so customers can scale their costs in line with how much they actually use the product rather than being locked into a fixed plan that may not suit their reality. |
| The challenge: It's a busy marketplace | Barriers to entry can be relatively low in the world of SaaS so certain markets can become overcrowded making it essential for companies to clearly stand out through unique features, superior user experiences or strong brand positioning. Without this clear differentiation, even extremely well built products can struggle to gain traction or retain customers. |
| How to overcome it: | Define and communicate a strong value proposition. This could be through unique features, a superior user experience or a focus on a specific niche. Building a strong brand and reputation that is supported by client testimonials, case studies and consistent messaging can really help you to stand out. Constantly reviewing the product and finding new ways to appeal to your users is also imperative. |
What do SaaS customers really want from a product?
There is naturally going to be some overlap in this section with the areas we have already touched on. What is it that SaaS customers really want from a product? What will make them choose one product over another? What screams 'value' to them?
1) Clarity & ease of use
Customers want to understand how your product works immediately. They've seen the demo, bought in to the value and the last thing they want is anything preventing them from jumping in and making the magic happen. A clean interface, intuitive navigation and minimal training help users see value quickly without needing extensive onboarding or support. This will also save you time and costs from a training resource perspective.
2) Immediate and ongoing value
All customers in all industries want to see results fast and SaaS is no exception. Whether it’s saving time, reducing costs or improving performance, the product needs to demonstrate clear, tangible benefits from the start and continue delivering value throughout the customers contract.
3) Reliability and performance
Consistency is critical. Users expect the platform to be fast, stable and available whenever they need it. Downtime, bugs or slow performance are a big no, no and can quickly damage trust and massively increase churn risk.
4) Flexibility and scalability
Customers want a product that can grow with them. Software that needs to be changed every few years can be a cause for concern for prospective clients - most would rather have a system that can accommodate their evolution path. This includes the ability to scale usage, add new or enhanced features and adapt to changing business needs without having to switch platforms.
5) Integrations
SaaS products rarely exist without some form of integration. Customers expect them to integrate with popular software they already use providing them with a connected ecosystem rather than yet another system to manage in isolation.
6) Transparent and fair pricing
Pricing should be easy to understand and aligned with the value being delivered. Hidden costs, complex tiers or sudden and unexpected price increases can be a major deterrent and another cause for high churn rates.
7) Strong support and onboarding
Even the strongest of products need support. Responsive customer service, helpful documentation and a positive onboarding experience gives customers confidence to use the software and start seeing the benefits it brings.
8) Security & trust
Customers need to know their data is safe, especially in this day and age. This is even more true for customers in regulated industries. Clear security measures, compliance standards and transparent data practices play a major role in building trust and should be incorporated into your product and policies at every opportunity.
9) Continuous improvement
What's groundbreaking today, is old news tomorrow. SaaS customers expect the products they use to evolve and remain fit for purpose. Regular updates, new features and visible investment in the product signal that you're committed to providing long term value and keeping ahead with market changes.
How bespoke and SaaS software relate to one another
Bespoke and SaaS products are more closely related than they might first appear - in fact, most SaaS products begin life as bespoke solutions.
At the very start, a SaaS product is usually built around a founder’s idea or a specific problem they’ve identified. In this sense, it is completely bespoke: designed with a particular set of requirements, workflows and users in mind. Every feature, interaction and piece of functionality is created to solve that original problem as effectively as possible.
As the product evolves however, the goal changes. Instead of serving just one use case or organisation, the solution is refined, generalised and standardised so it can be used by a wider audience. Features may be adapted to suit different user types, configurable options are introduced and the product becomes more flexible but always within a defined structure.
- Bespoke focuses on specifics - Building exactly what one business or idea needs.
- SaaS focuses on scalability - Taking that core solution and making it accessible, repeatable and commercially viable for many customers.
Even after this transition, the relationship continues. SaaS products often reintroduce elements of “bespoke” through configuration, customisation, integrations or enterprise level extensions. At the same time, businesses using SaaS may still invest in bespoke software alongside it to manage unique processes that the standard product doesn’t cover.
In simple terms, bespoke and SaaS aren’t opposites rather, they exist on a spectrum. Bespoke is often the starting point, SaaS is the scaled outcome and many modern software ecosystems are a blend of both.
How can we help?
If you're a SaaS company looking to take your product to the next level or an aspiring founder with an idea, we can help you make it happen. Our UK based development team have over 30 years of experience in building bespoke solutions that solve specific challenges, promote future growth and make businesses more efficient. We work closely with you from concept right through to delivery and beyond to ensure the final product aligns exactly with your goals and continues to provide value well into the future.
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