The SaaS model is unstable, and high customer cost is a key factor.

In the SaaS industry market, small and medium-sized enterprises are still competing for this place. It is reported that SaaS sales and market costs account for more than 55%, and in fact half of them are spent on customers. At present, the cost of obtaining a SaaS product is large, which is undoubtedly unfavorable for a heavy-duty manufacturer, and the high cost of obtaining a customer is a hindrance.

IDC predicts that by 2021, the size of China's SaaS market will reach 4.89 billion US dollars, and the compound annual growth rate will exceed 40% in 2017-2021. Among them, small and medium-sized enterprises are still the main battlefield. How to find a breakthrough in low-cost customers is still a question that the industry is thinking about.

For the cloud computing market, last year was the rapid growth of the SaaS industry market, and even a year of eruption. With the continuous maturity of the underlying IaaS layer products and technologies, users have developed user habits and a large number of application requirements for cloud computing applications. .

The SaaS model is unstable, and high customer cost is a key factor.

From a macro perspective, the current domestic labor costs are rising, and enterprise users are paying more attention to improving work efficiency and management quality. This has made enterprises more demanding to use some cloud SaaS applications to control costs.

According to the latest semi-annual tracking report of China's public cloud service market released by IDC, in the first half of 2017, the market size of China's public cloud software as a service (hereinafter referred to as SaaS) reached 540 million US dollars, an increase of 34.5%. China's SaaS market is in the early stages of rapid development, and its development speed is 10 times that of traditional software packages. IDC predicts that by 2021, the size of China's SaaS market will reach 4.89 billion US dollars, and the compound annual growth rate will exceed 40% in 2017-2021.

However, compared with the US market, China's SaaS market is still in the early stage of rapid development. The relatively mature market segments include CRM (Customer Relationship Management), ERM (Enterprise Resource Management) and collaborative application market. Moreover, there is no benchmark for the "unicorn" category in various sub-sectors. From the perspective of SaaS manufacturers' revenue, the top ten manufacturers only account for 35% of the overall SaaS market. The competitive landscape is very unstable. The characteristics of the SaaS market.

According to industry analysts, small and medium-sized enterprises are still the main battlefield in the next few years. Due to the lower level of process and standardization of small and medium-sized enterprises compared with large group companies, and the consideration of cost and efficiency, the acceptance of SaaS products is much higher than that of large enterprises. Therefore, in the next 3-5 years, small and medium-sized enterprises will remain the main demand market for the SaaS industry.

However, whether it is small and medium-sized enterprises or large groups, SaaS sales and market costs accounted for more than 55%, huge cost pressure, lagging behind breakeven, and also reduced profit margins. Further splitting, 55% of sales expenses, in fact, more than half spent on the customer.

According to incomplete statistics, the current cost of SaaS products varies from a few dollars to tens of thousands of dollars, and the marketing cycle is long, from marketing contacts to customer conversion for about 60 days. For most SaaS vendors who are under the dual pressure of cost and capital, it is undoubtedly extremely unfavorable. How to make a breakthrough in low-cost customers?

According to industry insiders, starting from the inside of the product is an important prerequisite for low-cost customers. Starting from the external access channel, you can get a lot of ideas. From past experience, there are two main ways to obtain new customers: online promotion/direct marketing and offline promotion/distribution. In the first half of the development of the Internet, Baidu, which has more than 80% of PC-side traffic, has basically achieved half of its online promotion. As the traffic portal became diversified, the effects began to become confusing.

In addition, resource swapping is also a major way to get customers at low cost. However, the implementation of this move has higher requirements on the starting point and the target. In addition to the comprehensive strength, there will be more requirements in terms of customer positioning, complementarity and benefit distribution. If the effect is not obvious or the customer is lost in disguise, it is necessary to stop the loss in time.

It is worth noting that in the future, emerging hot technologies such as artificial intelligence and machine learning will be the first to be applied to the relatively mature market segments of SaaS, providing a more intelligent customer experience for enterprise customers. Therefore, these technologies will also become an important focus for the future of SaaS companies.

Barcode Scanner Module

SUNLUX IOT Technology (Guangdong) INC. , https://www.sunluxbarcodereader.com

Posted on