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💡 Opportunity #1 - Software with a Service
🗂 Overview:
This could also be read as Service with a Software.
SWaS combines the scalability of software with the personalization of a service. This dual offering can significantly enhance the perceived value of a product, as customers get not just a tool but also expert guidance on how to use it effectively.
In some SaaS niches, it can be incredibly difficult to stand out or even generate demand - SWaS can serve as a powerful differentiator.
Likewise, in some service niches, it can also be difficult to stand out and create a unique selling point in a sea of people offering the same service.
Not only this but by offering services on top of software, you can tap into multiple revenue streams.
It can also allow you to create recurring revenue off what would otherwise be a one-time payment.
Let’s jump into how you can do this for yourself!
⭐️ Examples:
The Church Co started as a service selling “free” websites to churches and then created its own software to enhance offering. We covered their business model a bit here in case you missed it.
Convertkit offers a migration service to reduce the barrier for customers to switch over to their services from a competitor.
Brett from Designjoy the guy who popularised the productised service model recently announced he was launching a SaaS to help manage productised services end-to-end (although he more recently said he was canning this idea as it wasn’t better than what was already on offer).
👎 Problems:
Problems with Traditional SaaS
Lack of Personalisation: Traditional SaaS offerings often come as one-size-fits-all solutions, which may not meet the unique needs of every business or user, leading to a mismatch between features offered and features needed.
Limited Support: While SaaS products provide customer support, it's usually limited to technical issues. Users might need more in-depth guidance on effectively leveraging the software for their specific business goals, which is beyond the scope of standard support.
User Onboarding and Adoption Challenges: New users may struggle to fully adopt or understand the best uses of a SaaS product due to its complexity or lack of tailored onboarding experiences.
Problems with Traditional Services
Scalability: Pure service models can struggle with scalability, as increasing delivery often directly translates to increasing manpower, leading to higher costs and potential quality control issues.
Consistency and Quality Assurance: Human-led services may suffer from inconsistencies in delivery quality due to individual performance variability, leading to unpredictable customer satisfaction levels.
Efficiency and Automation: Services without an integrated software solution might be less efficient, failing to leverage automation for routine tasks, which can result in slower turnaround times and higher costs.
🧐 Opportunities:
Opportunity #1: Build SaaS applications for service businesses
For example, a web designer creating websites for restaurants/cafes could upsell their own online/table ordering platform, QR code menu platform, booking system, inventory management software, etc.
Offer to build this bespoke for web designers in this niche, allowing them to white-label the software you built and sell it on to their clients as if it’s their own. You can resell this white-label SaaS to multiple web designers in that niche.
Provide in-depth training and support to the web designer and even offer premium done-for-you setup services.
Opportunity #2: License white-label software to upsell to your clients
If you currently offer certain services to clients, you can find existing white-label software at places like CodeCanyon and sell it as if it’s your own.
This way you earn for the original service plus now add recurring SaaS revenue as well.
For example, you can buy an extended license for the below and add your own branding:
Privacy-Focused Analytics Tool for SMMA, Web Design, and SEO Agencies.
Custom AI SaaS for AI Automation Agencies
Email Marketing Platform for Email Marketers.
Social Media Management Platform for SMMA
Website Builder for Web Designers
OnlyFans Clone for OnlyFans Agencies
Accounting & Bookkeeping Software for Accountants
Offering white-label software not only increases your revenue but can reduce the cost spent on existing SaaS solutions. For example, Sprout Social can cost customers thousands but the majority of the features could be available here. The OnlyFans clone could cut out all fees paid to OnlyFans.
Opportunity #3: Build custom software for your service
If you currently sell services, build a software solution that solves your repetitive tasks or enhances your client’s results (by improving convenience, speed, workflow, etc).
This could be similar to the Castos example above, where they originally sold podcast growth, editing and launch services. The software then included everything their clients needed to run their podcasts (hosting, republishing, ads, transcription, etc).
Doing this gives you another income stream, helps differentiate your services in the market, brings in service leads, and means you can charge more for your services.
Opportunity #4: Find large SaaS applications (e.g. Shopify or Quickbooks) and build plugins + services on top of them
For example, you could build a landing page designer for Shopify and when you sell your landing page design services you use your own app to deliver the service.
🛠 How to Build:
Here’s a great video about how to go from productized service to SaaS.
Identify a niche where you can offer both software and personalized services.
Develop a scalable SaaS product that addresses a common pain point in your chosen niche.
Integrate personalized services that enhance the software's value, like setup assistance, training, or consulting.
Use the software to automate common tasks within the service to increase efficiency and scalability.
Offer different service levels to cater to various customer needs and budgets.
Build a strong onboarding process for both the software and the service to ensure customer success.
Emphasize the personalized service in marketing materials as a key differentiator from traditional SaaS products.
Implement a feedback loop with customers to continuously improve both the software and the service offerings.
Create a pricing model that reflects the combined value of software and service, considering recurring revenue opportunities.
Highlight case studies and testimonials showcasing the unique benefits of your combined offering to attract new customers.
Leverage white-labelling opportunities where appropriate to expand your market reach without diluting your brand.
Stay agile and ready to adapt both the software and service offerings based on customer feedback and market trends.
🚀 How to Grow:
Content Marketing: Create valuable content that addresses common issues your target audience faces and demonstrates how your SWaS solution solves these problems.
SEO Optimization: Optimize your website and content for search engines to attract organic traffic looking for solutions your SWaS offers.
Paid Advertising: Use targeted ads on platforms like Google AdWords, LinkedIn, and Facebook to reach potential customers actively searching for software or services in your niche.
Email Marketing: Develop a segmented email marketing campaign that nurtures leads with customized content, gradually guiding them from awareness to purchase.
Webinars and Online Workshops: Host free, informative webinars that showcase your expertise and the benefits of your SWaS solution, encouraging sign-ups or demos.
Referral Programs: Encourage existing customers to refer new clients by offering incentives for both the referrer and the referee.
Strategic Partnerships: Partner with other businesses that offer complementary services or software to cross-promote each other's offerings.
Social Proof and Case Studies: Publish case studies and testimonials from satisfied customers to build trust and demonstrate the impact of your SWaS.
Industry Forums and Communities: Participate in relevant online forums and communities, offering advice and insights while subtly promoting your SWaS.
Influencer Collaborations: Collaborate with influencers or thought leaders in your industry to reach a wider audience through their established platforms.
Direct Outreach: Use personalized outreach to potential clients who could benefit the most from your SWaS, especially in B2B scenarios.
Product Trials or Demos: Offer free trials or demos of your software with a consultation to highlight how your service enhances the software's value.
Customer Success Stories: Leverage successful implementations as detailed stories to illustrate the journey and outcomes achieved with your SWaS.
Upselling and Cross-Selling: For current clients, offer additional services or software features that complement their existing setup.
Building in Public: Use platforms like Twitter, LinkedIn, and industry-specific forums to regularly update your followers on progress, learnings, and even failures, inviting feedback and ideas for improvement.
