Customer Portfolios' Blog

Why SaaS Is NOT a Solution

In today’s business environment, there’s been an explosion of software-as-a-service (SaaS). By 2018, 27.8% of the worldwide enterprise applications on the market will be SaaS-based, generating $50.8B in revenue, up from $22.6B or 16.6% of the market in 2013. 

SaaS offer its users many benefits including being a flexible, low-cost alternative with a quick implementation period and a sleek interface.

 Sounds perfect, right?

Unfortunately, flexibility of SaaS has given way to point solution pandemonium. Today, there are Nth number of marketing channels, with Nth number of vendors trying to drive value from each channel. Since there is a different solution for each channel, it can be extremely difficult to connect data across channels in any meaningful way. As such, SaaS solutions fail to deliver business value that creates change in an organization for five key reasons. 

 

  1. Canned reporting. What would you rather have: reports that are myopic or reports that provide a holistic view of the business? Unfortunately, when you purchase a SaaS-based solution, you have very little influence over the reports and dashboards that you see. You are subject to the reports generated by the SaaS platform.

 

  1. Lacks actionable intelligence: With SaaS comes automated reports that lack any analytical insight. As such, you are beholden to insights that are not tailored for your business. Data is only as powerful as its application and without insights unique to ones business, it makes it difficult to turn data into a strategic plan that can deliver business value. 

 

  1. Data is tapped in silos. SaaS solutions focus on a single touchpoint within a much boarder marketing landscape and it is nearly impossible to integrate other data sources. This creates a limited picture of the customer since you are only focusing on a single touchpoint. In turn, this means that the marketing and business decisions that you then make are off only a fraction of the information you have.

 

  1. Service issues. Yes, the idea of a sleek dashboard sounds nice, but behind the curtain, many SaaS users' encounter service issues. Too often, they are not given the analytical expertise needed to understand their data and consquently, cannot leverage their data to make informed business decisions.

 

  1. Data portability. Data portability is another shortcoming of SaaS. If you spend all your time and money getting your data to work with a particular service and be integrated across other services, the last thing you want is that this service is about to shut its doors. This leaves your data trapped and puts you even further away from being able to turn your analytics into action.

 

These are just a few of pitfalls that plague many SaaS users. Don’t get caught up in the hype. Reach out to us today to see how we can help you leverage your data to drive business value and increased revenue.

 

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