Software-as-a-service (SaaS) is a licensing model where a company provides centrally hosted software on a subscription basis. Forget buying software and installing it on your system; customers now expect an evolving software platform they can access via the cloud.

However, new SaaS trends look to revolutionise the software industry once again. Whether it's generative AI, Web 3.0, or novel pricing models, 2024's SaaS trends will change the landscape forever.

This article explores the ten industry-defining SaaS trends in 2024 and beyond. Want to stay ahead of the curve? Read on.

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‍10 Industry-Changing SaaS Trends for 2024 and Beyond

1. Generative AI revolution

Haven't heard of ChatGPT? It's only the fastest-growing tech platform of all time. These generative AI systems can generate impressive text from a simple prompt, from answering customer queries to analysing your analytics and suggesting new best practices.

As of 2020, 84% of marketing leaders use AI as part of their content marketing software. More than just a text platform, however, machine learning – a component of the AI revolution – is a master of predictive analytics and anomaly detection. The former can help anticipate future changes in customer behaviour or identify the customers most likely to convert, while the latter notifies companies of potential security threats.

Here's how AI will reshape SaaS:

• Tailor SaaS interfaces based on individual user behaviour for enhanced usability.
• Deploy AI-driven chatbots to handle real-time user queries and improve satisfaction.
• Anticipate user needs and potential churn, allowing proactive interventions.
• Monitor vast data sets in real-time to detect and counteract security breaches.
• Use machine learning to adjust pricing based on market demand and competition dynamically.

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2. The Web 3.0 Internet Paradigm

No one is talking about Web 3.0. They should be! Web 3.0 is the latest iteration of the internet. The first iteration, Web 1.0, was little more than static web pages. Web 2.0 introduced user interactivity, leading to everything from social media to eCommerce. However, Web 2.0 also centralised data collection, creating tech giants like Meta, Amazon, and Google.

Web 3.0 is a radical overhaul. Using blockchain technology and decentralised principles, Web3 will redistribute control back to users.

In the SaaS industry, Web3 refers to the transition to decentralised applications (dApps) that don't rely on centralised servers but operate using a distributed ledger. These platforms run democratically, with users being integral to the ongoing development and evolution of the software.

Moreover, all data on the platform will be owned by the user, and transactions involving data exchanges will be recorded on the public ledger (aka blockchain), guaranteeing transparency and trustworthiness.

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3. Redefining Customer Success

Forget customer support; customer success was developed to counteract churn. As customers could swap platforms instantly after their subscription ends, ensuring customers reach their goals through proactive support, relationship-building, and new service developments was critical to maintaining a platform's longevity.

Customer success is a long-term SaaS trend. Platforms should consider hiring specialist customer success managers (CSM) to develop success plans, coach and train users, and help define user goals. Already, the 2022 Customer Success Index found that 95% of B2B companies have a customer success function.

As Web 3.0 SaaS platforms begin to compete with centralised SaaS companies, customer success will no longer be defined solely as a business proactively helping the customer. Users will expect some level of input in driving the platform's development and suggesting new features.

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4. Rise in Usage-Based Pricing

Remember when you purchased Microsoft Office at your local computer store, took it to work, and downloaded it onto your system? Then came subscription-based pricing. You paid a set amount monthly or annually, and you got all the features as they updated.

Now, a new pricing model is gaining popularity: usage-based pricing.

As the name suggests, under this model, customers pay solely based on how much they use a product rather than a fixed subscription fee.

Don't think that means you pay by the minute. Usually, the model lets customers pay based on an estimated amount of usage. For example, a customer support SaaS service could let you pay for 5,000, 10,000, 50,000 AI chats per month.

A key benefit of this new model is that businesses can pay as they grow. But such models can get confusing, and companies operating in industries with fluctuating demand can suffer as a result.

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5. Micro-SaaS Boom

Micro-SaaS companies target a niche market, delivering a specific service using minimal resources. Don't underestimate this sector; it packs a punch.

In the past 5 years, interest in micro-SaaS grew 363%. It's not hard to see why. Most SaaS ideas aren't large enough to support an entire company, like HubSpot or Salesforce. These smaller requirements are perfect for solopreneurs building a company without the overheads of a large team of employees.

Consider these examples:

• Carrd. An easy-to-use platform for creating responsive one-page websites. Upgrade to pro for premium features like Google Analytics integration.
• AnyTrack. Connects marketing channels directly to customers and integrates seamlessly with Shopify and Google Analytics. Aims for 100% data automation and recovery from iOS updates.
• Solidgigs. A premium freelance job site delivering daily leads without commission deductions. Focuses on connecting freelancers to the top 1% of job opportunities.
• Plutio. Comprehensive workflow management tool that offers a centralised environment for task tracking and collaboration. Tailored for developers' customised workflows and business operations.
• Plausible. An open-source analytics alternative to Google Analytics that prioritises privacy. Provides concise data reports for accessible insights.

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6. Data-as-a-Service (DaaS)

Content isn't king; data is. Data-as-a-Service (DaaS) is a novel sector of the SaaS market offering data collection, aggregation, analysis, and storage to companies via a cloud-based system.

DaaS companies form a one-stop-shop for your data requirements by collating data from numerous sources. Using cloud-based storage allows businesses to access their data anytime anywhere, eliminating the need for expensive infrastructure.

Considering 56% of existing corporate networks are constrained by speed bandwidth, challenges exist in DaaS growth. Nonetheless, as the costs of such services undercut the upfront costs of data infrastructure, the sector is likely to see substantial growth.

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7. Greater Security Capabilities

Worryingly, cyberattacks are surging globally. In business, ransomware, data breaches, and major IT outages risk everything from supply chains to company trust. Currently, cybercriminals can penetrate 93% of company networks – an unsustainable situation. With 43% of cyberattacks targeted at small businesses, there's a growing awareness of the dangers.

Advanced solutions like multi-factor authentication, encryption, and blockchain technologies will become standard practice to protect data and ensure compliance with new legislation (such as GDPR and CCPA). SaaS companies that refuse to update their security capabilities will be left behind as customers lose trust.

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8. Improved Interoperability

Like many new SaaS trends, they're driven by emerging technologies like Web 3.0. Interoperability is no different.

Customers increasingly expect to streamline their operations as they introduce new SaaS platforms. However, the inability to easily transfer data makes such beliefs ungrounded.

A key SaaS trend in 2024 is for open APIs to help platforms work together as part of a digital, cloud-based ecosystem. Already, some platforms advertise their ability to work alongside HubSpot or Salesforce. Greater integration will allow for more informed decision-making and strategic planning due to the comprehensive data insights.

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9. Emerging Market Growth

Emerging markets are developing rapidly in Eastern Europe, Latin America, and Asia. Growing demand for SaaS products will see the industry pivot to cater to these new sectors and hire more workers. While established markets, like the US, UK, and Germany, remained the highest revenue countries in 2021, some of the top emerging markets include Cyprus, Hungary, Vietnam, and Malaysia.

Look out as demand and adoption of SaaS solutions becomes widespread throughout these regions. This trend highlights a latent opportunity for businesses to access untapped potential and diversify their customer base. Furthermore, it underscores the importance of cultural and regional customization in SaaS offerings to cater to varying needs.

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10. Mobile-First Approach

In 2024, SaaS companies are progressively adopting a mobile-first approach. As users increasingly handle tasks like ordering and service tracking on their phones, there's a pressing demand for apps that prioritise mobile-friendliness over traditional desktop applications.

This strategy focuses on designing software with mobile users at the forefront. Such solutions leverage mobile-specific features, from location data and voice commands to augmented reality (AR), enhancing user engagement.

Moreover, a mobile-first approach ensures a consistent and smooth experience across various devices. By doing so, businesses can craft interactive experiences finely tuned to mobile user preferences.

Want to get ahead of these SaaS trends in 2024 and beyond? trumpet is a specialised platform helping businesses create personalised microsites alongside real-time customer tracking. Book a demo to learn more!