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Adam Fard
by Adam Fard, Co-founder & Head of Design

7 SaaS Trends to Watch in 2021

7 SaaS Trends to Watch in 2021

The software-as-a-service (SaaS) model has skyrocketed in popularity in the last few years as it continues to offer cutting-edge solutions in a wide array of industries. As the competition among SaaS products continues to grow, so do customer expectations. 

A recent study published by Price Intelligently indicates that SaaS products that hit the market in 2015 had an average of 2.6 competitors. Five years later, this number skyrocketed to 9.7.

In order to gain some competitive edge, many businesses now adopt a variety of modern technologies ranging from AI to low-code development and beyond. In this article, we’ll take a closer look at the latest trends in SaaS and what the future holds for this service model.

1. Artificial Intelligence 

Artificial intelligence (AI) is one of the most important innovative technologies that will most probably bring disruptive change to the SaaS model. One of the more important benefits that AI brings to the table is hyper-personalization, which will allow to satisfy customer needs in B2B, B2C, or DTC markets. 

Source

But there’s much more to it. Some of the other use cases for AI in SaaS are: 

  • High-quality support services like chatbots, etc.;

  • Advanced user guidance and onboarding;

  • Dynamic pricing (check out the product design we did for Th!nkPricing);

AI Case Study

Product Design For an AI-Based SaaS Solution

Take a look at a case study we did on Th!nkPricing, an AI-based dynamic pricing tool.

See Case Study

2. Machine Learning

Machine Learning (ML) and AI are often used interchangeably, and that’s somewhat incorrect. Machine Learning is a subset of artificial intelligence that focuses on learning capabilities and processing data. 

Some of ML most important use cases in SaaS are (but not limited to):

  • Allowing platforms to learn about customers’ preferences and habits, enabling businesses to make their products more usable and intuitive;

  • Processing large amounts of contextual data and insights to help companies to optimize their offering and market positioning;

  • Optimizing internal collaboration and operations;

  • Increasing customer engagement;

  • Ensuring superior data security via advanced pattern recognition; 

3. Integrations

In the early days of SaaS, there were no integration solutions. Products and services couldn’t be merged. As a result, customers were supposed to appeal to third-party solutions, which wasn’t at all appealing for both users and institutions, especially the ones that weren’t ready to migrate their entire data to a cloud platform.

However, more and more SaaS vendors tend to provide greater integration capabilities, which entices businesses that prefer a hybrid system that combines a cloud back-end and on-premise system. 

Integrations in SaaS are also because they allow to eliminate a substantial part of human error via partial automation of processes. Products like Zapier are a great example of such seamless automation—the tool can comfortably merge a wide array of platforms, from CRMs to email clients and beyond. 

4. Micro SaaS

As we’ve mentioned previously, the competition on the SaaS landscape is now fiercer and more abundant. As a growing number of players enter the market, we begin to see many companies that strive to adapt and have a more innovative and creative approach to providing their customers with services. 

One way of adapting to this competitive environment is to create smaller, more flexible products, which are often run by very small teams or even a single person. Micro SaaS products are often extensions or add-ons to larger products that aim to optimize the experience for particular industries. 

Because such products are lower risk and are relatively inexpensive to run, we might see a substantial boost in the number of micro SaaS products, especially the ones aiming to serve narrower customer groups and niches. 

Lempod is a good example of a micro SaaS. The app does just one thing – it boosts your organic reach on LinkedIn.

5. Everything goes mobile

As the world is gradually moving into a more mobile-first era, we’ll certainly start seeing more SaaS products heading in the same direction. This, of course, comes with a wide array of challenges, especially in the design side of things—creating interfaces that will accommodate neurodiverse and senior users, as well as people that are suffering from sight and hearing impairment. 

The areas that are projected to see most attention in 2021 are:

  • Improved accessibility features;

  • Enhanced mobile personalization; 

  • AR and VR-based immersive mobile experiences;

  • Enhanced responsivity, gesture design, and ML-based intuitive filtering abilities; 

An example of a mobile version of a primarily web SaaS platform – HubSpot. Source.

6. Low-code apps

No-code and low-code development platforms have been on everyone’s radar for the last few years, and the SaaS industry is no exception. Given that low-code platforms are significantly more accessible to the average person, they allow less “techy” startups and individuals to enter the scene, thus allowing to diversify the market.

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This overwhelming accessibility comes with a host of other benefits. Less code implies lower costs, which means that developers, designers, and product executives can spend more time and money on innovation and addressing the industry’s more pressing issues. Similarly, low-code platforms will allow startups to create quick MVPs, enabling them to test more solutions at a faster pace.

7. Vertical SaaS

The fundamental difference between horizontal and vertical SaaS is their focus. The former, as the name suggests, provides solutions to a wide array of industries. At the same time, the latter is a product that aims to cater to a narrower audience, typically within a single niche. 

Source

Vertical SaaS is a comfortable and cost-effective solution for many businesses, given the industry-tailored solutions. This enhanced flexibility will ensure greater revenue and lower expenses on customer acquisition.

Conclusion

SaaS will undoubtedly be an exciting space in 2021. As the industry adopts a broad spectrum to modern tech like machine learning and low-code development, we’re bound to experience a paradigm shift in the way businesses and customers use services. 

Adam Fard

Adam Fard . Founder

Helping startups to improve their app’s usability & realize their business goals

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