Experts, forecasters and IT reporting groups regularly cite performance failure rates of 30% and above in software product development undertakings. As a result every company recognizes that it will have on-premises software put on a shelf that either failed in performance or simply did not return the value of the investment for the product use and outcome. This results in the accepted understanding by all that there will be a certain amount of shelf ware. See http://www.it-cortex.com/Stat_Failure_Rate.htm for details.
Customer-vendor connection is very inadequate so far as on-premise software is concerned. The implementation is done by customer’s IT department. Even when vendor’s expert team is in the process, customization lessons are not fed back. The customer-vendor gap is more felt because the longer inventory has no harmful effect on a vendor and as such he has no incentive to see through the completion of the process. . For off-the-shelf software, the vendor has no ongoing concern that the customer continues to use the product – for the vendor a success is that the software is sold, not that it is properly implemented. In contrast, a SaaS (Software as a Service) vendor’s revenue depends on the renewal of subscription software, providing vendor incentive to implement the software successfully.
The real beauty is that the model thoroughly aligns the goals of the customer with the plans and ideas of the vendor to create a quality, functional, and tested solution. SaaS operates in only a single environment, eliminating the need to offer support for a multiplicity of different configurations. This streamlined productivity allows the engineering portion to solely focus on improving functionality, with goals of improving the product from the constant demand set by the large customer base. Constant customer feedback allows engineering to focus on incorporating new functionality. SaaS customers reap the benefit of the distilled best practices of the marketplace.
Count on the trustworthiness and expertise of SaaS to deliver the best outcome for both the customer and vendor. SaaS concentrates on only one thing, you, freeing you up to concentrate on incorporating the feedback of your new large customer base. SaaS customers are not simply subscribing to a service but receiving the best and most effective ideas the entire market has to offer.
In SaaS companies, customer satisfaction is management’s primary concern best measured by renewal percentages. Customers can easily get out of their contracts once yearly. Customer simply won’t continue a subscription if they don’t utilize the system or if there’s poor service. It tells us that the product or service is not what the customer anticipated or is willing to continue to pay for far better than any customer satisfaction survey might indicate. People simply vote with their money.
This added dynamic withholds applications from running with flaws, which in turn greatly improves software quality for SaaS vendors. Since numerous other businesses and industries are an integral part of your operation and affected customers’ number is in the hundreds or thousands, as a SaaS vendor, you will need to work quickly to fix problems and issues. In doing so, you will avoid putting your renewal business in jeopardy.
With SaaS, you have a standardized platform that your customers will all use, and provide feedback on. There will be many different points of view on how the application can be improved. Over time, SaaS solutions begin to evoke strong best practices and garner constant flows of ideas for improvement and enhancement of the platform from the users.
Summarizing, with Enterprise Software, the customer rarely gets what they buy or want. With SaaS it’s the opposite. You get what is offered every single time. With SaaS there will never be a demonstration done just to trick a buyer into purchasing the item; instead all demonstrations display how the item is used and the purpose of the item. This is because the software is not implemented in a special way. What you see in the demonstration is what you actually get. What You See Is What You Get (WYSIWYG) is exactly what SaaS is all about!