Successfully transforming an idea into a tangible reality inherits immense challenges. At the same time, identifying the risks and understanding the pitfalls during the initial stage of product development is a significant factor that determines success.

Much of what an efficient Software-as-a-Service (SaaS) product development entails can be boiled down to having a solid plan from the start and foreseeing the aspects that may derail the progress. 

This post is all about identifying some of the most critical SaaS engineering mistakes that may stall the growth of your product or keep it from achieving its full potential.

Underemphasizing user-friendliness

It’s very simple math – if a product is not easy to use, it will not be used. Often times, developers want to highlight all the features they’ve spend time incorporating into the product.

However, the customers may not take full advantage of the capabilities of your products. The users may not even want all the features of a product.

As such, all the additional features only end up making the product complicated. It’s important to focus on the core function of a product to make it user-friendly and streamlined.

Failing to factor in scalability

No SaaS business should have scalability as a drawback for adopting services and success.

Look at how your technology adoption curve has become. Initially, you might not know, how your service curve looks like, but you need to keep scalability as a priority from the beginning.

You must also be prepared with the adoption goals, scenarios, and ability to scale various components of the service.

Once you go live, the damage done on your business by a non-scalable service is quite severe to bear.

Wrong Pricing Strategy

Another uphill task during the development of a SaaS product is determining the price. Several products are sent into rough patches and struggle with attracting customers because of the wrong pricing strategy.

If the product is overpriced, it will drive away the customers, and if you undercharge, you’ll end up incurring losses. Pricing mistake not only affects your profits but also impacts the conversion rate and brand image.

To avoid the issue, use your competitor’s prices as a starting point. Remember that selling the same product at the same price will not help. Providing more value for a lower price has higher chances of helping you win business.

Not Onboarding Properly

While building a SaaS product, don’t focus on getting a large number of people without a detailed plan. Users need a comprehensive digital plan to help them get success with your product in the beginning.

Setting up tutorials, emails, prompts or try personal messages will not only onboard them properly, but will also increase the chances that they will suggest it to their immediate friends and contacts.

Neglecting the competition

Speaking of competition, SaaS is one of the more disruptive IT trends and hence the competition is immense. Here, rather than being intimidated by your established peers, adopt a strategy to follow, learn and implement what they are doing for success.

Its natural for your target audience to conduct comparison research before reaching to a buying decision. By keeping a close eye on your competitors, you can figure out ways to gain an edge.

Undermining Customer Service

We agree that growth is about gaining new users. But as you get new customers, make sure that it does not affects your existing customer base.

Lincoln Murphy, SaaS Customer Success Expert, says that customer success should be your driving purpose.

As you build your product, research on what your customer needs and wants from you. Consider their issues, keep them satisfied, and you’ll see an increase in growth if done correctly.

Failing to Align Sales and Marketing

Sales and Marketing Alignment, a concept commonly known as SMarketing transforms your subscription efforts and helps you acquire customers.

However, make sure that your sales executive and marketers are on the same page. You also need to check that frequently-asked customer questions are a part of your content marketing.

If these three areas are not aligned with each other, there is often a point of failure for service providers.

Not Giving Importance To Marketing Automation

Marketing Automation is one of the most vital parts of every SaaS business.

Regardless of the niche, your business is operating in; your marketing efforts will be wasted if you fail to nurture prospects, qualify the leads, and turn them into customers.

The efforts need not be complex, but they should be in-line with your business and sales cycle.

Not Communicating Post Sale

This is perhaps the most common mistakes on the entire list.

There are instances when your pricing is actually right, the pitch is in the right direction, and your business is growing at a satisfactory pace.

But then something new or a competitor comes up in your niche, and your user is inclined by their sales funnel. Not just the sales funnel, they also become their customer as well.

So, what went missing?

You did not keep in touch with your customer post-sale. Communicating with your users post-sale has an impact on the lifetime value of your customers and the ability for adding-on future sales.

As they make their initial purchase, send those offers, new additions, and emails regularly to them.

At last, do everything to increase your email rates open.

The Final Words

There is no denying that SaaS business is very competitive. You also don’t have to be perfect at beginning.

However, you must have the ability to identify the mistakes that you tend to make along the way. As you identify the mistakes, rectify them before they make you run out of business.

Not all the start-ups are meant to get success, but keep a note of the above mistakes, and don’t let them be the reason for your failure.

After all, mistakes are a good thing, but only if you learn from them.