Today we are going to talk about an interesting topic that is leading the software revolution globally and we are actually going to be talking about a combination of two of the most efficient business software development concept solutions.
These are two very practical concepts that have come together to transform how we understand software product development.
We are talking about SaaS (Software as a Service) and MVP (Minimum Viable Product) development.
This is one of the simplest SaaS MVP guides that will help you understand how the combination of these technologies at transforming the software landscape.
We will understand what SaaS MVP means and we will also understand the reasons why companies choose SaaS MVP as the best approach to software development and how it fits into the software development landscape of 2024.
We will also understand the key things to keep in mind on how to build a SaaS MVP in the most effective way possible and much more.
So, let us start this blog by understanding what is SaaS MVP.
What Is SaaS MVP?
In order to understand the entire concept of SaaS MVP, we need to understand them separately.
SaaS (Software as a Service)
SaaS means Software as a Service and it is the development of cloud-based software solutions for users and this is usually done with subscription-based model software.
This is mostly done with accessibility and scalability in mind and there are excellent famous examples of SaaS software solutions in the form of Microsoft 365 as well as Google Workspace and much more.
MVP (Minimum Viable Product)
We now come to MVP (Minimum Viable Product). It is a very modern concept of product development which in this case is app or software development where you simply create a product with a minimum set of features that is capable of running and being usable by the users.
This is different from the concept of having a full feature-packed software solution with every feature working immaculately. MVP is the belief in this concept that you do not need every feature out of there to release the product.
You just need the core features and functionality in order to be able to launch the product stable enough for people to use it and provide feedback. That feedback is then used for the development of the product and it is excellent for validating a new business idea.
Now all you have to do is combine both of these concepts and you have SaaS MVP. It is all about developing the simplest version of a software-as-a-service application with only its core functionality.
This is quite practical for businesses as they can simply turn a product concept into a reality and even launch it and have users use it without bearing the costs of developing a final product.
SaaS MVP is popular across industries from finance to E-Commerce as well as customer service because it allows companies to come up with the product and at least start their journey.
In fact, it is so popular that the United States alone has 17,000 SaaS companies with most of them following the SaaS MVP approach.
SaaS MVP is in fact so popular that the industry is estimated to grow to nearly 300 million dollars by the end of 2025.
So, What Are the Benefits of SaaS MVP?
Cost Practicality
The most common reason why developers have loved the concept of SaaS MVP is because of the immense cost practicality that comes with this kind of approach.
This is because, unlike traditional software development or app development which requires huge amounts of investment to get the entire project together, SaaS MVP is just about getting an MVP up and running.
This means developers can start on any kind of project they like and they can even attract investments and also focus on developing the essential features without thinking about the budget.
SaaS MVP ensures more projects go from the planning board to development and it is just a better option simply because the developers do not have to think about resource allocation much.
Faster Development Times
If you want to have an MVP launched into the market as soon as possible then the only way to do it is with the help of SaaS MVP.
This is because SaaS MVP is not about developing the entire project with every small feature and hours of bug testing.
It is about getting a product ready that works which means for example if you want to develop a SaaS MVP for a navigation app then you can simply work on the navigation features and launch the app.
In a traditional software development situation you would refine the app and include dark mode and other things to the app to make it more feature-packed and visually appealing, you would optimise the performance and much more.
It is good to have a complete feature-packed software or app like that but it takes up valuable time and the software/app nearly takes double the time for development.
In a SaaS MVP situation regarding this example, all you do this get the core functionalities in the navigation software or app and just launch it and wait for feedback.
Minimal Risk
People outside the development scene do not really think about the risk factors of developing a product for the market.
This is because the software or app market rejects more products than it accepts. Even if you think you have a very incredible idea regarding a product, there is still no way to know if it is going to work unless you launch it in the market.
In a situation like that where so much is on the line, if you decide on launching a fully featured app or software product then you are taking much more market risk.
A failure in that situation is going to be catastrophic for smaller businesses. It can even lead to situations of bankruptcy where the company has invested everything into a product and it hasn’t been well received by the market.
In a situation like this SaaS MVP makes much more sense because you are not investing everything into it and when we say investing we mean money and time as well as reputation.
You are simply coming up with an MVP and after you release it you can find out if this product actually works in the market and you can make adjustments along the way. The risk factor is reduced by a lot.
Feedback-based Development
SaaS MVP is about feedback-based development. This is different from the traditional approach of full-fledged development which has no room for feedback.
What happens in traditional product development is that the developers come up with a solution that is the final solution are very close to the final solution.
The benefit of this is that you get a very polished product without any flaws but the problem with the traditional approach is that you do not have time to consider the organic feedback generated from the users. You do not use feedback as an active component in development.
With SaaS MVP you do not run into that kind of a problem because you release a product with only its core features, it gets used by the actual users and not your testing team. The users provide feedback and then you keep on making changes to the product.
It traditional complete software product might provide the complete experience but what if the users do not want that experience and they want something else and that is why SaaS MVP is always better.
Scalability
It is difficult to scale the infrastructure that has been created for a traditional software development approach.
This means if you want to develop a product in the traditional way then it might be very difficult to not only alter the things but also scale it.
SaaS MVP ensures that you can scale up according to the requirements and you are meant to do it like that because it is all about feedback-based user-centric development.
The only way to move forward with SaaS MVP is scalability.
This makes SaaS MVP very much future-proof compared to any other type of software development concept because you can expand upon the product as much as you want because the development is gradual and feedback-based.
So, How Do You Develop a SaaS MVP?
Identify a Problem
Your first course of action for developing a SaaS MVP is to understand a problem that already exists in the world.
For example, if we consider the service Uber Eats then we would find that they identified a problem of scarcity of a unified food ordering app. Individual restaurants had their delivery services but there was no unified platform where you could get food from every restaurant out there.
Similarly, you need to identify a pain point that consumers face and this will help you move to the next stage of the process.
Identify Market Need
If there is a problem then there also is going to be a market need. People sometimes assume that identifying a problem is the solution but it is only half the solution.
In order to understand and identify a problem correctly you need to study the market and do market research as well as competitor research.
This will help you understand if the solution you are thinking about has actually been attempted or if you are doing it for the first time.
If you are not doing it for the first time then you need to do it in a way in which you can have a competitive edge.
Do Audience Research
The third and most important stage in this entire process is to identify the target audience because your entire product development execution for the SaaS MVP is going to depend on the audience.
You need to keep them in mind and this will help you determine the features you are going to choose for the SaaS MVP.
Identifying the audience will also help you create a product road map and it will also help you choose the kind of business model that can actually and practically work with the product audience.
Different demographics have different receptibility to different business models and subscription models and you need to keep that in mind.
Determine Unique Value Proposition (UVP)
Once you have identified the problem and you have also identified the target audience who are actually facing the problem and desperately need a solution, you need to look inwards.
You need to find out the Unique Value Proposition (UVP) that you are providing in the form of your product.
This will help you set your USP.
You must distinguish your product from the competition because the market is so saturated that you are definitely going to get competitors who have attempted to come up with a solution to the problem.
Plan the Features
Once you have identified the Unique Value Proposition (UVP) you are going to bring to the market with your product, it is time to plan the product.
This is where you plan and prioritise and select only the core features and functionality that are going to be necessary for a SaaS MVP launch.
You can utilise different techniques such as the MoSCoW method (Must-Have, Should-Have, Could-Have, Won’t-Have) for planning.
Choose a Business Model
You now have everything ready for the SaaS MVP development. All you need to do is to select a business model.
You need to consider a few things for this business model because you need to understand consumer pricing and along with that you also need to be able to price the product in a way to get a return on investment.
You can choose between different types of business models where you can charge a flat rate for the software but this is uncommon in SaaS MVP.
You can choose a subscription model that is very popular in the form of different kinds of price points for different levels of app functionality.
Or you can even have a free app with ads
Develop the SaaS MVP
Now it is time to develop the actual SaaS MVP and for that you need to choose the appropriate technology stack for the SaaS MVP. You need to consider the frontend, backend as well as the database and cloud infrastructure in order to do that.
You then need to design the prototypes and wireframes that will go well with the product vision and also the technology stack. You can also do this before choosing the technology stack if you are not confident about it.
Now it comes down to developing the SaaS MVP and you can choose between the different kinds of development methodology but we recommend Agile.
Launch and Feedback
Now that we have the product ready to launch, you need to promote the product before launch and also ensure the right and essential security measures are in place.
Now it is time to launch the product and you can do a regular launch or you can even do a limited launch.
After which you need to collect feedback and this is one of the important reasons why developers choose SaaS MVP in the first place.
You also need to collect data regarding usage of the product after the launch and you need to get as much data as possible which includes things like User Acquisition Rate, Customer Lifetime Value (CLTV), Churn Rate, Net Promoter Score (NPS) etc.
Make Changes/Improvements
After you gather the important data, you need to work on it and it is very important that you make changes to the initial SaaS MVP.
This includes things like bug fixes as well as user experience improvement and even new functionality additions.
You need to understand the needs of the users and make these changes accordingly.
This is also the point in which you scale up SaaS MVP depending on the feedback and add more features and try making changes to it and even add new subscription tiers to the product.
We hope this blog helps you understand why SaaS MVP is so popular in 2024 and why it is a much more practical option compared to other types of software development solutions.
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We are Think To Share IT Solutions and we have extensive experience in creating custom SaaS MVP solutions for every kind of business need.
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