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No Man Is an Island, neither is a SaaS Application

Almost five hundred years ago, John Donne said this quote about man’s nature. Well, in today’s hyper-connected world, the same is true of SaaS applications as well. This radically changes the nature of the application, the demands on the talent and even the organization structure.

However, the key SaaS strategic objectives have not changed, which include:
1.    Acquire paying customers
2.    Retain the customers
3.    Increase the sale per customer
4.    Reduce costs and optimize operations
The first two are usually shown as part of the customer acquisition funnel, as in the image below.

SaaS Application Customer Funnel

But how does this play out for SaaS applications? It actually impacts the SaaS strategy in multiple ways. Here is a look at how the integrations or API strategy can impact all 4 objectives.


As you can see, there is tremendous value in thinking through the entire API strategy and how it impacts your business strategy. To think of a SaaS application as just a set of business rules and user interfaces for a few users is a very puerile assessment of the true value of the product. And a large part of that value is captured via the strategic addition of APIs.
In future blog posts, I will share additional details of how the API strategy works for any SaaS application for any vertical.


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