SaaS Subscription Business Trends That You Need to Pay Heed To
The corporate sector and the SaaS business industry are evolving continuously. Recently, it has been observed that the process of evolution has become very speedy. The SaaS subscription market has even evolved more speedily. Thereby, you must have a holistic overview of the changes that occurred in the recent past and understand the new B2B SaaS trends in the subscription business market.
According to Statista, the US SaaS market is expected to grow from 91 billion euros to 191 billion euros between 2020 to 2025.
But how the SaaS market can show a boost like this so rapidly? Here comes the trends that play role in the growth of a market. In this blog, you are going to read about all trends that have evolved the SaaS subscription business market at present and in the recent past.
Also Read: Customer Retention Cheat Sheet for SaaS Businesses – Hone the Art of Customer Retention Management
Trendsetters vs Trend Followers
Before we delve into the details of the SaaS business trends, you must know whether you are a trendsetter or a trend follower in the market. We have certain indicators that will show your status being a trendsetter or a follower. If you offer the boxed subscriptions because your competitors are doing this. If you are using the hybrid billing model because others are getting better revenue out of this model. And if you are offering subscriptions just because many other businesses like yours opt for the same business model, then you are following the trends in the SaaS market.
However, if you were running a business, and in your domain, no one thought of earning by identifying the recurring need of the customers, and you thought of monetizing the recurring need of your customers and entered the subscription business market. This is the approach of a trendsetter.
But there is nothing wrong with being a trendsetter or a follower of trends as long as you are earning profits. If you are a follower, by the end of this article, you will know the trends that you need to follow this year long. And if you are a trendsetter, then you will know what is already there in the market, now, you need to think beyond this.
Any Business Can be a Subscription Business
Many experts would say that not all businesses are meant for subscriptions, but we believe that almost any business can offer subscriptions for its business. Especially, in the SaaS business market, there is no other business model other than subscription billing that can help in monetizing products or services. All that you need is to find the recurring need of the customer that he can get fulfilled from your SaaS business, and there you go!
In the recent past, the pandemic spell even gave a boost to the SaaS subscription business market. Startups started their operations at that time. Subscriptions became a new B2B SaaS business trend. It has been mentioned earlier that nothing can be more suitable than a recurring billing model for SaaS businesses. So, in the SaaS business industry, any business can be a subscription business—you just need to find the recurring need of the customer.
Also Read: Important SaaS Customer Retention Metrics for Subscription Businesses
You have done your part.
Let SubscriptionFlow take it from here!
subscription management software.
The Difficulty for Startups to Find Entry into the Market
You will probably think that when any SaaS business can be a subscription business, then why it is difficult for startups to enter the market? Many businesses can opt for subscription billing but not all of them can compete with the subscription business market leaders.
The competition in the market is increasing every day. The point is your business can be a subscription business, but you will have to compete with small as well as large enterprises. You not only need to enter the market but survive and then succeed in this market. You need to have an innovative plan so as to enter and stay with all competitors that you have.
Multiple Payment Methods
Another trend in the SaaS subscription business market is to give your customers the option to pay through multiple payment methods. Today, the customers in the market belong to three different generations. They are Millenials, Gen Z, and Gen Y. And you need all of them to onboard your platform. But to cater to the needs of your diverse leads is not easy. Millennials prefer paying through cash or bank cards. Gen Z is more comfortable with other recent payment methods. They are even shifting to payments with bitcoin.
However, multiple payment methods can be a way to attract diverse customers. Many times, SaaS businesses target a specific market beyond borders where the targeted customers prefer some other payment method. You cannot help but offer that specific payment method to retain the existing customer base and onboard new customers. So, offering multiple payment methods is a new trend in the subscription business market.
From SaaS Management Software to SaaS Management Solutions
Recently, SaaS businesses do not need simple and standalone SaaS management software rather they need business solutions. And there is a difference between these two. A SaaS management software can be a standalone software to manage recurring billing for SaaS businesses. However, business solutions are integrated with other applications and payment gateways, and still, they are flexible so that SaaS companies can integrate these software with other applications. The features and functionality that a business solution offers are way more than simple software. Even startups are very keen when they are investing money in the SaaS subscription management software. They know that they will compete with market giants so they need their tech stack robust and highly responsive. They dedicate sufficient budget to get the SaaS subscription handling software.
Also Read: Scale Your SaaS Business Growth With Service-Based Revenue
Conclusion
If you want to follow the B2B SaaS business trends, then you need functional subscription management software that can automate everything from customer onboarding to revenue management. SubscriptionFlow is one such platform that SaaS businesses can opt for if they want to keep abreast of the trends in the market.
