As the development of technological infrastructure gallops along in leaps and bounds, it’s no surprise that we have seen a boon in small tech companies, particularly those offering a particular type of product — software as a service, often abbreviated to ‘SaaS’.
SaaS is a software licensing and delivery model in which software is licensed on a subscription basis and is hosted by another party. Basically, it’s a company providing software, but also the service aspects of that software, which might include chat bots, data scraping, payment solutions, customer service operations and a host of other back-end tools.
The ASX is home to 40 or so stocks offering exposure to SaaS. One research house has global SaaS revenues reaching $122 billion this year.
But there is one element to life as a SaaS business that experts reckon is under-appreciated, and that’s something called ‘customer success’. Amelia Hayson, co-founder of Success Society, a 1,200-strong member body dedicated to improving customer success practices among SaaS companies in the APAC region, and Darren Chait, COO and co-founder of connected meeting notes SaaS tool Hugo, explain why.
Stockhead: It doesn’t sound like it should be a ‘new’ trend – so what is ‘customer success’?
Amelia: Customer success is about people and people are driven by two motivators – their needs and their experiences. In meeting these drivers, a SaaS business can create loyal customers, who continue to use their product, despite the barriers to cancelling subscriptions being virtually non-existent. In a competitive market, it is no longer sufficient for the customer experience to just be smooth and simple – it should WOW. – Read more