Definition
Software as a Service (SaaS) is a delivery model in which software applications are hosted by a third-party provider and made available to customers over the internet. This user-friendly software delivery model may also be referred to as On-Demand software. Instead of owning the software outright, customers subscribe to the software on a user-basis or number of users. This means that the customer can pay for what they use, with no upfront costs or long-term commitments.
SaaS applications are accessed through a web browser or mobile app, making it easy for businesses of all sizes to enjoy the benefits of enterprise-level software. Typically, SaaS systems are designed to be highly scalable and can be customized to meet specific business needs. Some of the most common SaaS applications for businesses include CRMs, HR management, inventory management, marketing automation, and project management software.
Benefits of Software as a Service (Saas)
One of the key benefits of SaaS marketing software is the low cost of entry. Since software applications are hosted on the provider’s servers, the provider handles software maintenance, upgrades, and security; thus, your IT team can focus on other important tasks. This saves organizations essential resources, such as time and money. Also, SaaS vendors customize value pricing for customer budgets, enabling businesses to choose the best package for their immediate needs.
Another advantage of SaaS is the accessibility of real-time data. SaaS marketing tools offer live updates, providing businesses with actionable insights into their marketing campaigns. With SaaS, CMOs can quickly and easily access data at any time, from any location, assisting them in making decisions on-the-fly, a factor that is critical in the age of digital marketing.
The Software as a Service model focuses on the importance of customer retention. When customers are satisfied with a SaaS system, they are less likely to switch to a different provider. Retention is encouraged by the vendor’s response to customer feedback. Thus, by using SaaS marketing software, businesses can build strong and lasting customer relationships.
Related
- Customer Data Platform (CDP)
- Customer Journey Orchestration (CJO)