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Essential SaaS Trends to Follow in 2023

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IT experiences a significant transformation from a vague direction to one of the most promising industries in the world. Users are not that much excited about new engines or automobiles as before. They are interested in seeing how software smoothly and gradually makes their life easier.

Cloud technologies are relatively new to the market, yet they have become a sensation. These technologies allow maintaining the integrity of data regardless of whether these are photos from your vacation or a code you’ve worked on for months.

From its early years, software as a service (SaaS) became a trend and grew into an entire sector.

SaaS is a method of distributing software according to which the user buys access to the software instead of the entire application. It is logical, yet SaaS became popular only recently. Currently, SaaS is the software distribution, market king. Still, what is so special about it?

Why is SaaS the future of software distribution?

Earlier in the article, we mentioned cloud storage intentionally. The thing is that distributing software according to SaaS is something bigger than just providing access to an application. This is where cloud services come into play.

Many companies, while employing the SaaS principle for providing access to software, share access to the product and the cloud storage. Hence, the user is sure that the project in Photoshop will save even if the lights go out or the operating system fails.

SaaS is around us, yet what will happen in the future? There is no particular answer to this question since many sectors can employ this technology. Simultaneously, we can forecast the development of SaaS by analyzing the topical trends.

Saas platform

How will SaaS develop, and what will it show in the future?

About 70% of companies and developers employ cloud technologies for their new products. The statistics allow hypotheses about SaaS since the market never stays idle.

Respectful analysts say that by 2025 about 80% of software will use the SaaS distribution method. However, what else will happen in the future to it?

We gather the ten most popular current trends in SaaS solutions to answer this question. If you study these trends, you will know more about SaaS and can imagine what will happen to this technology in the future. The following list illustrates the most relevant trends in SaaS for 2023.

Saas development

Promoting individual solutions for a particular user audience.

Software is a reliable and multifunction instrument in the right hands. Commercial software is designed for a broad target audience; hence, it’s unified in numerous aspects and doesn’t offer unique solutions. But what about corporate software?

One of SaaS's primary trends is cloud software for particular tasks and companies. A company explicitly creates such software for another company without sharing access with regular users. At the same time, unique SaaS solutions for professionals and corporate needs can enter the broader market and become a company product if there is demand for it.

Modern IT technologies help to reduce the cost of software development significantly. It means that developing software is more cost-efficient. It is worth remembering the competitiveness of the IT market. To outperform the competitors, you will need unique solutions and opportunities, and SaaS is always ready to provide them.

Distributing corporate software via SaaS is one of the most discussed trends currently. Considering the opportunity to launch unique software for corporate needs and then provide it for the broader market, it is not surprising that SaaS technologies are so attractive to major software developers.

Taking into consideration the SaaS popularity, your company can reach more by involving this trend.

SEO for SaaS

Search engine optimization (SEO) is a method of product promotion. For the last ten years, many developers and website owners have shown a demand for it. Experienced SEO optimization specialists can achieve outstanding results, and expert analytics prove it.

By investing in SEO, SaaS suppliers will get an unlimited stream of traffic that will bring in even more target audience representatives. Simultaneously, only 11% of developers are ready to invest in search engine promotion today.

The influence analysis of SEO on SaaS solution popularity shows that search engine promotion will bring up to 68% of traffic from the available number of potential supplier clients. Such a high figure is bound to influence the opinion of SaaS companies so that the quintessential SaaS and SEO could be considered a promising trend whose lifespan will be almost unlimited.

New user retention methods within SaaS

Companies offering SaaS access to their products are keenly interested in the minimal client churn rate. The user retention rate is calculated regarding the total number of users using SaaS, while the user churn rate is calculated about the number of canceled subscriptions.

To minimize the losses, SaaS companies involve various retention methods. The most efficient and popular methods are:

  • Paying for the subscription at the end of the year.
  • Notifying users about new functions through different marketing channels.
  • Expanding the range of opportunities and increasing the servicing quality.
These user retention methods are not new and insufficient. That’s why one of the primary trends for SaaS now is investing in personalization.

A personalized approach to each client is an exciting opportunity for SaaS companies to reach maximum client loyalty with minimum investment. Some personalization instruments: addressing by name, welcome videos, and even information for the user provided after analyzing their search queries.

Some sort of targeted advertisement within SaaS allows the companies to expand their circle of loyal users and offer them the highest level of service. Therefore, personalization is one of the most significant trends for SaaS in 2023.

Native advertising as a method of attracting users

Users frequently hear of targeted advertisements. Such advertising method involves the queries and interests of users that are analyzed with an application or manually. If the number of data is sufficient, you can create high-quality targeted advertisements and attract the target audience. This type of ad will justify all the costs. At the same time, native advertising offers more than target ads.

The idea of native advertising is that the user sees an ad without thinking it is one. This trend's success is due to users' reactions to advertising because, more often than not, our nervous system and consciousness reject advertising. If you manage to promote your product so that the user does not realize it is advertising, you are in luck.

High-quality native advertising will significantly outperform the targeted type in terms of result and efficiency. Native advertisement is not annoying; hence, the clients stay loyal. Also, if there are many native advertisements for a specific product, the users’ brains will be in an associative link that will lead them to your website.

Companies can make millions in profits by working competently with human perception and presenting their product in a native SaaS format, and they understand this very well. That's why native advertising has become one of the most critical trends for SaaS in 2023.

SaaS market consolidation and the threat from significant players

SaaS is a highly-promising method of software supply. The SaaS market never stops growing and developing, yet some obstacles can’t be bypassed.

Let’s discuss big companies with massive budgets and wanting to remain leaders. They block new smaller companies that want to develop SaaS.

The leading players are Adobe, Salesforce, Shopify, Intuit, Atlassian, Zoom, and other famous names. They offer software for enterprises and small and medium companies that dominate the market.

They offer software for enterprises and small and medium companies that dominate the market.

High competitiveness is an issue for corporate SaaS technology users since they are interested in narrowly targeted products. Developing such products is illogical for major SaaS projects, while smaller companies can’t compete with corporations. It’s a paradox because major SaaS industry players significantly reduce their development.

The search for new solutions and attempts by small and medium-sized SaaS companies to stay in the market is one of the most popular trends today.

The increasing demand for software with shared access.

Pandemic limitations showed the world how useless offices are and that working from home is highly efficient. Since work from home is increasingly popular, the SaaS market requires shared access to applications.

Shared access to corporate software allows the employees to share the necessary materials and work on the same project thousands of kilometers apart. It is already possible to implement such access, and some companies are even offering it to their customers.

The pioneers already succeed in providing corporate access to the software via SaaS, yet not all who desire manage to achieve it. According to analysts, in 2023, there will be rapid growth for corporate access software, along with a boom of such software in the IT market.

Implementing machine learning to SaaS

Machine learning is any process that an application learns from massive data volumes received. The more personalized data an application gets, the more personalized it becomes. At this stage, SaaS lacks personalization, so numerous providers already implement machine learning in their products.

Combining SaaS products with machine learning helps to achieve fascinating results. Personalized software that even can change the design according to the owners' needs sounds incredible, yet it is already here.

But for software personalization, companies will save a lot of money on workers with machine learning in SaaS. Machine learning provides bots that are indispensable assistants for users. The bots are much cheaper than operators; hence, these technologies are SaaS is one of the developers’ priorities.

Machine learning will significantly increase the level of SaaS market development. The products will become the most personalized ever. The emphasis on adaptivity, combined with unlimited opportunities for machine learning in SaaS products, will help the companies to achieve the best results and attract even more users.

Artificial intelligence in SaaS

Artificial intelligence is not something new. The commercial industry has employed AI technologies since 2007. Its function was to create financial reports on the actual data. Still, SaaS with artificial intelligence will lead to unprecedented results.

Artificial intelligence can solve numerous tasks today. If AI has enough information, it can automatically adjust the colors while shooting on mobiles. AI even can render texts. With artificial intelligence in software as a service, the developers will reach better results than in all other industries.

SaaS with artificial intelligence will hint to the user where and what to fix something while writing a text. AI can learn, meaning it can become a personal consultant for users in practically any question. Indeed, it will take some time before AI substitutes human assistants. Yet, the combination of AI and SaaS can become a considerable advance in the industry, and the developers understand it.

This is why numerous SaaS companies are now working on implementing AI technologies in their products. They want better results and more active users.

Low code and its employment in SaaS

SaaS products have high demand from consumers. Big players own numerous successful products in the SaaS industry, and they are not too motivated about change. However, small SaaS companies that employ low code for their products can make the change.

Low code is a software development method requiring a minimum number of manual codes. The low code principle involves employing separate fragments of code responsible for various functions for creating new software solutions. It significantly facilitates the development process and reduces the time required for it. Hence, it is a threat to SaaS market leaders.

Low code is one of the most popular trends in the IT industry. According to developers’ claims, shortly, many companies will reject manual code and start using low code for higher efficiency and speed. SaaS providers are interested in this technology since it allows them to achieve leading positions in the market with minimum expanses.

Currently, several SaaS products employ low code. IT experts are divided on the collective future of this development method and SaaS, but we tend to believe those who say handwritten code will soon be abandoned. So it appears that the future of SaaS is in low code.

SaaS popularity continuously grows

According to the O’Reilly survey, where they asked 1283 engineer programmers and business representatives, the popularity of SaaS continuously grows. About 88% of enterprises use at least of cloud computing service.

The covid pandemic and the further changes globally negatively affect numerous industries, yet helped SaaS become popular. Thanks to shared software and technology development access, we can confidently claim that SaaS has a big future.

SaaS is a highly relevant trend, and the statistics prove it. The fact that many developers use at least one cloud computing service shows that the trend will continue to grow. Hence, there is evidence of long-term success for SaaS and companies that provide cloud services.

Each trend we’ve mentioned above directly influences the entire IT industry. Considerable developers, new companies, and hundreds of sectors require SaaS.

The high level of competitiveness and big players somewhat slow the development of SaaS technologies. At the same time, there are companies with huge revenues from SaaS, and it motivates the developers to create something entirely new.

No one will tell for sure what is the future of SaaS technologies. Yet, SaaS seems promising and needed, and the companies that work with SaaS products use the most relevant solutions.

Essential SaaS Trends to Follow in 2023 key takeaways:
  1. Why is SaaS the future of software distribution?
  2. How will SaaS develop, and what will it show in the future?
  3. Promoting individual solutions for a particular user audience.
  4. SEO for SaaS
  5. New user retention methods within SaaS
  6. Native advertising as a method of attracting users
  7. SaaS market consolidation and the threat from significant players
  8. The increasing demand for software with shared access.
  9. Implementing machine learning to SaaS
  10. Artificial intelligence in SaaS
  11. Low code and its employment in SaaS
  12. SaaS popularity continuously grows
Merehead does professional development of SaaS Trends 2023. If you have questions, contact us for a free consultation.

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Yuri Musienko
Author of the post
Merehead is a development company

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