SaaS Development Company

The SaaS industry has experienced potential growth over the years. Here are some of the SaaS business metrics that matter the most:

• Customer Churn
  Every SaaS development company needs to increase its customers along with maintaining the existing ones. Customer churn rate evaluates how much business you have lost within a specific period. It helps you track the day-to-day continuity of the business.
  Since most SaaS businesses are based on annual subscriptions, retaining customers is as essential as acquiring new ones. When you track churn on a quarterly or monthly basis, consider other parameters apart from the customer count. Ensure to identify personas of churned customers to find why they failed to renew subscriptions. It is good to discuss this information with the sales, customer success, and marketing departments.

• Customer Lifetime Value (CLV) 
  Customer Lifetime Value is the amount of money you charge from customers when they engage with your company. CLV provides businesses with an accurate report of their growth and can be evaluated in the following two ways:
  1. Identify the CLV by dividing 1 by customer churn rate. For example, if the monthly churn rate is 2%, the customer lifetime value would be 50 (1/0.02= 50).
  2. Find customer lifetime rate by multiplying ARPA (average revenue per account) with customer lifetime. ARPA is calculated by dividing total revenue by the number of customers. If the revenue is $200,000, divide it by 200, and ARPA equals $1,000.
  CLV represents the worth of your average customer. For startups, it presents the value of the company to investors.

• Revenue Churn
  It is essential to evaluate revenue churn and customer churn to find the outside impact consumers may have over others. If subscription price varies based on the number of users or seats a customer pays for, the customer churn rate can be different than the churn rate if customers produce more revenue than others.

• Cost of customer acquisition
  Customer Acquisition Cost (CAC) represents the exact cost to acquire new users and how much value they can drive to the business. When CAC is combined with CLV, this overall metric assists companies in assuring the viability of a business model.
  Divide total sales and marketing spend by the number of new customers to evaluate CAC. For example, if your marketing and sales spend is $200,000 in a month, and 100 new customers have been added, CAC would equal $2,000.

The cost to develop a SaaS solution depends on whether you hire a developer or an agency. The US-based SaaS app developer costs $60 per hour on average. For example, if your SaaS app development takes four months, it would require 600 hours to develop an application. It means it would cost you $36k to build the SaaS solution.

However, development companies/agencies might cost you more than hiring individual developers. On the other hand, the high cost would give you a lot of additional benefits. First, companies are more experienced than individual developers as they have worked on many development projects. Second, you will not have to be involved in the project during development as agencies have a big team to work on the project and manage it efficiently. Working with agencies is more expensive than individual developers because agencies assign multiple developers and a project manager to deliver a high-quality product in a short time.

Software as a Service is a software delivery and licensing model in which software is hosted centrally and licensed on a subscription basis.

Using this model, a single application model with a single configuration can be used for multiple customers. SaaS application is installed on several machines to support scalability.

A second version of the application can also be created to provide a selected group of customers with pre-release application versions for testing.SaaS can be of two types:

• Vertical SaaS
  A solution that fulfills the need of a particular industry. For example, software for agriculture, software, finance, and real estate industries.
• Horizontal SaaS 
  Solutions that emphasize a software category. For example, developer tools, marketing tools.

SaaS applications are also referred to as hosted software. They use cloud computing to deliver a single application to several customers, irrespective of their location. It allows handling activities from central locations in a one-to-many model.

An administrator does not have to worry about software updates. SaaS technology aims to reduce the time and cost of deployment.

Software as a Service is a software distribution model where a third-party provider hosts applications and provides them to customers over the internet. The Software as a Service model allows users to access applications hosted online, freeing them from installation, integration or maintenance issues.

More about LeewayHertz SaaS Services

Custom SaaS Platform Development

We help our clients by building a custom SaaS platform that is scalable and secure. Our team uses the latest technology tools to create a custom solution that can be scaled for future upgrades.

UI/UX Design

Our team creates interactive and user-friendly prototypes to get your early feedback. We aim to drive more customer revenue to your SaaS solution by following enterprise-grade design principles.

SaaS Application Consulting

We discuss and explore the right methodology and technology to develop your SaaS platform. Our team of experienced SaaS application consultants will guide you through ideation to delivery.

Multi-Tenant Architecture

We assist software vendors in planning and building multi-tenant architecture in their Software as a Service Solution. By creating multiple single instances of software, we ensure that the application is served to multiple tenants.

Technology Migration and Re-Engineering

With our expertise in blockchain, AI, IoT, cloud, mobile, and web, we can migrate your existing SaaS solution to the latest technologies and ensure that the solution does not get obsolete with time.

SaaS Solution Mobile App Platform

Understanding the number of active smartphone users, our SaaS developers can bring the SaaS solution to the mobile platform. We have expertise in both native and hybrid mobile application platforms.

Secure and Compliant SaaS Solutions

We follow best and industry-grade practices to ensure the security of SaaS solutions. With proper compliances in place, we focus on meeting compliance requirements when building SaaS platforms.

Support and Maintenance

Our team provides complete support and maintenance services for SaaS solutions to ensure that the application never deals with downtime and always remains up-to-date with the latest OS releases.