DON’T MAKE THESE 5 MISTAKES IN YOUR FREEMIUM SAAS APPLICATION

Imagine that you're all set with an awesome idea for an app to help your business. You've planned it to be an open-source SaaS application, so that customers can try what the app can provide. It sounds like a fully-proofed app successful plan, doesn't it? But what happens if you are caught in the traps of the common mistakes companies make. This is why, in this blog, we've listed five common mistakes enterprises make when it comes to the development of SaaS applications. Along with several important preventative measures to avoid these mistakes. Freemium is one of the most popular SaaS (Software-as-a-service) models for all the right reasons. The majority of software applications today are compatible with one or the other variant that is a freemium SaaS application. If it is properly implemented it is able to make your application the next biggest thing in your field. You've probably utilized the freemium model when exploring your favorite apps, such as, Netflix, Hulu, Dropbox, Splunk, Spotify and so on. However, despite its popularity companies often face difficulties in making it work due to the mistakes listed below. What's a freemium strategy for an SaaS app? ​ A mix that combines "free" and "premium," this SaaS model makes use of a free version of the SaaS product to advertise the premium version. Users have access to the basic features for free and, for more advanced features you can choose an annual subscription. 5 common mistakes to beware of in the freemium SaaS application Error #1 Accessing the wrong features. sufficient features to demonstrate application value When it comes to unlocking features in the SaaS application, you should consider reducing not better. It is crucial that your customers understand the worth that comes from the SaaS application. It is essential to provide them with an understanding of the way your SaaS application can impact the business or them personally. The user experience and the customer satisfaction are mostly dependent on using the free versions of your application. If your value proposition for your app's free version isn't compelling, customers will not switch to premium. What's the reason behind not attracting new customers or users with your free software? The reason is that the features you offer aren't compelling enough. Consider this way If your SaaS application has 20 features, and you're selecting 5 features to get free access. These five features must be enough to make people want to purchase the other 15 features in accordance with your SaaS pricing. What is the best way to define free? This is the bigger question that you must address as an SaaS company when it comes to pricing strategy. Second error: Giving access to the majority of functions, there's no reason to purchase This error is in contrast to the one before. However, it brings you back to the issue that we had you think about what should be free? This is an important issue that is tied to the development of your SaaS app development. You should save the most valuable features of the SaaS options for users who pay premium. If you're attracting lots of users however, only a few upgrade to premium, then you should reduce the amount of your most expensive features. In essence, the cost-to-cost ratio shouldn't affect the revenue of your business. A prime example of an error is one example is the New York Times One example of this is the New York Times website. In the beginning, they offered unlimited access to the newspaper to the users. However, in 2011 they restricted access to just 20 articles per month per user. Users were required to sign up to access more information. In the course of time they realized that they were still giving freebies to subscribers. Since very few people signed up. In 2012, the company reduced the amount of free content to 10 articles per month. Error #3 not viewing the free user as a customer Another mistake that SaaS enterprise product companies make is that they don't communicate the benefits of their premium service to their free users. They do not consider free users as clients and don't pay the same attention to their needs. According to research papers from Harvard Business School the free user is typically worth between 15% and 25% more than paying customers. If your customers do not comprehend and appreciate the entire potential of your product, your conversion rates are likely to be low. Insufficient support for your customers will end up affecting the overall user experience. Support you offer to users who are free in the SaaS application will benefit you in the long term. It is essential to make clear distinctions between the premium and free services, and establish the pricing model for freemium services. Additionally the SaaS application development must be able to handle the two sets of features, both basic and sophisticated. Make clear distinctions between each of these areas to make it clear to the users. Error #4: Not having a commitment to innovation The freemium SaaS application is much more than an instrument for acquiring customers. Many companies make the error of removing their free versions when new customers are not getting as much traffic. Also, when the onboarding rate decreases. You must instead improve its value for your SaaS application with constant improvement and set the freemium price in line with the needs of your customers. Freemium SaaS application opens up new possibilities for innovation and to solve user's issues and problems consistently. Dropbox is an excellent illustration of this constant innovation. It was launched in 2008 mostly a service for backing to files. In the end, they began offering shared folders , which turned Dropbox an effective collaboration tool. Then, more features were added into play, such as automatic syncing for smartphones and other devices, automated uploading of images and many more. As time passed, general SaaS application was improved and provided greater value than what they began with. Mistake #5: Not understanding target conversion rate If you are using a freemium SaaS application, you could be guilty of not fully understanding the implications on your rate of conversion. What is your ideal conversion rate? This is an important issue to think about in order to increase the revenues of your SaaS application. When your rate of conversion is less than 1percent, then the freemium SaaS marketing strategy isn't effective for you. This could be due to the fact that you're giving away too much for free, or you are offering little benefit to users to upgrade. A high conversion rate does not necessarily translate into the popularity of your SaaS application. Keep in mind that it's a freemium SaaS model is based on attracting an enormous amount of traffic. In that scenario you must focus on creating more general users rather than just the conversion rate. For example 5 percent of one million monthly visitors is more profitable for your SaaS app's revenue over 50% of 100,000 users. Therefore, a moderate conversion rate with an abundance of traffic is the ideal choice to use for the SaaS Freemium service. Best Practices for SaaS application development To ensure the success of SaaS app development process, you must follow some of the most effective methods to SaaS application development, which are listed in the following paragraphs:

1. Concentrate on the needs and concerns of your users

2. Try to provide self-service and personalized service within your SaaS application.

3. Make sure that the integration is seamless and easy

4. Choose the right cloud service for your needs.

5. Set high standards for security and conformity

6. Check performance and correct problems

7. Choose a Multi-tenancy Architecture

8. Prioritize and improve features

In recent years the model of freemium for SaaS application development has gained increasing interest from SaaS companies. Software-as-a-Service is a go-to approach for enterprises who want to mitigate to the cloud. In essence, SaaS application development cut the cost of infrastructure. In addition they give the ability to access an endless array of software. A growing number of businesses are using the freemium model to launch the development of their SaaS applications. However, it requires knowledge and experience with common errors that can be avoided. When you are developing your freemium SaaS implications, it's essential to think ahead and keep in mind your objectives for the long time. The first choices you make in your creation of your product will determine the success of your application or product. Find out more about our precise SaaS development procedure and solutions, designed specifically for our customers on this page. First Published here - Don't Make These 5 Mistakes in Your Freemium SaaS Application