For those who work with SaaS Sales, knowing the particularities and characteristics of each audience is essential to stand out.
The way you communicate with the end consumer, for example, should be different from the way you talk to decision-makers in a company.
And that’s why you need to know more about the traits of the B2B SaaS business model.
- How does contracting a service work from one company to another?
- What are the advantages of investing in this business model?
- And which companies are already known for successfully operating in the B2B SaaS market?
In this blog post, we’ll resolve all your questions on this subject. Check out what we will cover:
What is B2B SaaS?
B2B SaaS is software offered by a company so that other companies can access the solution’s features and functionalities only through an internet connection.
Regardless of the device used, whoever hires a service within this business model can enjoy all the benefits anywhere.
This business model is known for its variety of solutions that can solve the pains of companies from the most different segments.
A CRM platform is a widespread example of B2B SaaS. Another interface widely used by companies is ERPs, which enable more efficient management of a company’s internal processes.
In other words, there are several solutions within this business model, allowing companies to take advantage of all the benefits of a solution simply and practically.
How Does B2B SaaS Work?
B2B SaaS works from cloud-based software distribution.
In practice, it works as follows: a company builds a solution that will help several other companies with their tasks.
Instead of selling access from installing a program on a computer, it is always accessed remotely via the Internet.
Therefore, companies that operate in this business model need to keep servers and databases constantly updated so that their customers can access the software.
The entire transaction is performed remotely and digitally, without the need for installation, which increases the possibility of use by the customer.
What are the Advantages of this Business Model?
Here is a list with a few of them:
Practicality for use
One of the great benefits of this business model is the ease and practicality to companies.
As no installation is required, it becomes much easier to use it in your day-to-day life.
Just access the software through your browser from any device, type your access credentials, and you can use all the resources.
Very valuable for smaller teams that are not as technically savvy, B2B SaaS offers convenience for use.
No need for significant investments
Another critical point of the B2B SaaS model is the possibility of cost reduction.
These cloud-based software products are usually much cheaper than the traditional version.
This is because it runs on a single infrastructure, as it becomes possible to make changes for all customers at once, without having to face too many problems with it (for example, software maintenance).
This reduction in costs for the company offering the service is also reflected in the price charged in the market. Thus, B2B SaaS implies a cheaper operation for all parties involved.
Cost and Revenue Predictability
An essential feature of the B2B SaaS model is the predictability of costs and revenue.
On one hand, the client subscribes to a monthly, semi-annually or annual subscription and has an exact forecast of how much will need to be invested over that period.
This is a detail that can help a lot in the management of your financial resources and in the best use of your budget.
At the same time, companies that develop SaaS for other companies can plan their financial plans more precisely, thanks to the recurring payments of the subscription systems.
With this more significant control of resources, it is easier to identify the need for new investments or ensure timely improvements.
Upgrading and enhancements are simpler to do
Perhaps the most significant advantage of a B2B SaaS is the possibility of upgrading without losing time on the job.
In a moment marked by the constant search for greater productivity, the updates made to the contract software do not demand so much time from customers.
This greater practicality is also highly valued within this business model.
Another important topic that this model provides is more comprehensive support. After all, it is natural that questions arise during the use of the software.
The advantage is that B2B SaaS solutions usually offer 24-hour support services seven days a week since users’ experience increases.
The possibility of free trials for a certain period is another highlight.
Since it is an entirely remote working model, flexibility is another critical benefit of B2B SaaS.
A small business that started its subscription plan with a more straightforward service can gradually scale up the services contracted.
Since the solutions are more customizable, there are fewer limits, making this an ideal option for growing brands.
The possibility of customizing what is hired is also another essential differential since it increases the reach of a solution.
Suppose that a software previously had a limited target audience. In that case, the B2B SaaS model allows the functionalities to be reduced or expanded, always according to each client’s amount paid and needs.
Examples of B2B SaaS Companies
Here are some prime examples of how B2B SaaS is already present in the market!
When talking about solutions in the digital environment, it is natural to always think of Google, isn’t it?
Although the search engine is the company’s best-known platform, it also provides several solutions that fit into the B2B SaaS model and that you have probably used a few times already.
After all, you don’t need to install any software to send an e-mail, right? Anyone from any place or device can access Gmail.
The same goes for other Google features such as Drive, which allows the storage of documents in the cloud, Forms, focused on forms and surveys, or Docs, the version of Microsoft Word produced by Google and in SaaS format.
In other words, practically the entire company’s product portfolio is based on this business model.
Another classic example of digital transformation and B2B SaaS advancements is Dropbox.
The cloud storage company has its strategies aimed at small businesses and end consumers as well.
The offering is straightforward: space where customers can store a range of documents and files in the software to share with others or access anywhere, without saving to hardware.
Email marketing is a strategy widely used by marketing professionals who want to create a closer relationship with their audience.
And nothing better than to count on a fully customizable and flexible solution, such as MailChimp.
The company’s customers can configure their entire sending flow, customize messages, control the efficiency of strategies, and increase the chances of success of their campaigns.
Marketing and sales strategies can also be used from a B2B SaaS perspective, and the best example is HubSpot.
With a complete platform focused on customer relationship management, the company allows other companies to optimize their processes for attracting, nurturing, and contacting leads and potential customers.
In addition, HubSpot has numerous solutions based on the same business model but focuses on solutions for marketing teams.
And all this is done in a scalable, flexible and customized way thanks to the SaaS model.
Wrap Up: B2B SaaS is the Business Model of the Present and the Future
Digital transformation has allowed more access to a variety of technological resources to boost the growth of this business model.
More companies are finding complementary solutions to their internal processes through B2B SaaS.
With the accelerating evolution of technology, the trend is that this business model is the present and especially the future.
The B2B SaaS model offers a variety of projects, allowing different companies to improve their processes and even business models, with a simplified and practical interface.
Whether to better manage the relationship with your customers or to boost your team’s productivity, B2B SaaS will enhance your team’s workflow.
How about getting to know some examples of B2B SaaS that can contribute to your marketing strategies?
Continue on our blog to check out 7 Tools for B2B Content Marketing to try!