The SaaS (Software as a Service) model has claimed leading positions in the IT product market, affirming its convenience for both users and product creators. The market size is projected to reach 197 billion USD in 2023
and is expected to continue growing at a minimum rate of 10% annually (or as ambitiously as 30% annually). Well-known SaaS solutions include products such as Salesforce, Microsoft 365, Zoom, Shopify, and many others.
The user’s journey to purchasing a SaaS product typically begins with visiting the company’s website through organic channels or advertising. This is followed by stages of product exploration, purchase, and usage. The customer can make the purchase independently, and in this case, the company incurs costs only for marketing promotion (and, of course, for ensuring a good UX on the website to guide the buyer to completion). However, the more complex and expensive the product, the more crucial the roles of sales teams, onboarding, and support become.
When launching a SaaS product, it is essential to approach pricing and customer acquisition cost calculation deliberately. In this article, we explore three ways to attract customers, each with its own economic dynamics. By constructing such a financial model for your SaaS project, you can understand which option or combination of options is suitable in your case and under what target values for pricing and expenses the product will be commercially successful.