Major Challenges Faced by SaaS Solutions [+ Quick Tips to Resolve Them]

SaaS, software-as-a-service, allows you to use a software only at the cost of subscription, freeing you from the costs and worries of installation and maintenance. 

Because of their flexibility and affordability, SaaS solutions have been one of the fastest-growing categories of the IT industry. The Indian SaaS industry generated a revenue of $8.3 billion in 2021. It is estimated to reach over $116 billion by 2026.

Challenges and Solutions

Like any other field, however, SaaS is also subjected to challenges. But there is a difference in challenges encountered by SaaS entrepreneurs, which arises because of its unpredicted nature. And therefore, they demand a different approach. 

Let’s know the biggest challenges SaaS companies face:

  1. Establishing a customer base
  2. Not having the right pricing model
  3. Resistance to change
  4. Not making data-driven decisions

Establishing a Customer Base

growing your customer base as a SaaS solution
Growing your customer base


“Customers won’t care about any particular technology unless it solves a particular problem in a superior way”says Peter Thiel. 

In a highly competitive market, where everyone is struggling to rank their products, establishing a customer base can be challenging. 

However, solving a real problem is a genuine way to attract potential customers. Before putting time and effort into a product, make sure that it will actually solve a problem that customers care about.

Quick Tips:

  • Solve a real problem
  • Offer free trials to potential customers to see if the product meets their needs
  • Create an engaging brand

Not Having the Right Pricing Model

Pricing a product is one of the most challenging aspects of the SaaS industry. Choosing the right pricing model can help you in selling more subscriptions, as pricing is a determining factor while purchasing a service or product. 

Pricing can be done with two things in mind:

  1. Providing value to the customers
  1. Keeping your company afloat

However, before placing price tags on your SaaS products, you need to choose a pricing strategy

Quick Tips:

  • Experiment with different pricing models
  • Examine the customer’s willingness to pay

Resistance to Change 

resistance to change comes in selling SaaS solutions
Resistance to change comes in way while selling to new customers

As a SaaS marketer, you might need to sell to a customer that already uses a particular software service. Making them switch to your service is not easy. It needs convincing. They will buy your product only if it adds new value to their business. 

They might ask if your software will boost their productivity or if you offer your services at lower costs and what exactly is different from the software they are currently using. 

If your answer to these questions is not convincing enough, you won’t be able to close the sale.

Quick Tips:

  • Adopt new ways of marketing the features of your software
  • Use diverse trial methods to test the product.

Not Making Data-Driven Decisions 

A recent survey stated that companies making data-driven decisions are 162% more likely to surpass their revenue goals compared with non-data-driven companies.   

 Despite this fact, only 24% of organisations were found to be data-driven according to a NewVantage Partners survey, in 2020.

One of the main reasons companies are not going data-driven is the hard-to-use analytics tools. Going to the data team every time you have a problem is frustrating.

Also, a 2021 survey reported that 92.2% of mainstream companies find cultural challenges and the resistance to enable change, as the biggest obstacle in going data-driven.

Therefore, this is the right time when we introduce the SaaS solutions, like you, to A platform that allows you to develop a series of dashboards ensuring a competitive edge in the market, with real-time analytics and data insights you never had.

Quick Tips:

  • Being data-driven is a slow process, be persistent

Wrapping Up

Having a brilliant product, a great team and amazing technology do not ensure the all-time success of a SaaS company. There are challenges along the way. These can be external as well as in our own strategies. A seemingly promising business strategy might not work in the ever-changing industry. 

The solution is to be adaptable to the new market scenes while also optimizing your services accordingly. Challenges faced wisely and with patience will bring you more success. 

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