Nov 9, 2021

about 5 min read

5 big 2022 challenges all SAAS startups must overcome

Over the last several years, the SaaS business model has gained a lot of popularity. The huge success of SaaS businesses like Slack and Dropbox has made SaaS an increasingly appealing alternative for a wide range of entrepreneurs.


Several firms had difficulties in 2020 as a result of the worldwide coronavirus outbreak. The crisis, on the other hand, offered new market prospects for SaaS companies. 


The SaaS industry is estimated to reach $164.29 billion by 2022, according to Transparency Market Research. Despite this, not all SaaS businesses are equally well-liked.


In such a competitive environment, both large and small businesses will face obstacles from other competitors in the industry to obtain as much wiggle space as possible. 


Here, we'll look at 5 important 2022 challenges faced by SaaS companies and how to address them.


1. Issues creating your SaaS Start-up's brand awareness

People are less likely to buy from you if they are unaware that you exist. The good news is that increasing brand recognition has never been simpler. 


95% of marketing firms, in my opinion, focus on brand awareness and they can definitely help you out with that.




Because getting your message in front of people is so simple.


The difficulty is that awareness is useless if your message is bad.


No one cares if you exist, even if they are aware of your existence, if you are unable to assist them in any manner, you still fail. 


Trust is one of the most crucial factors for SaaS companies’ success more than any other thing.


Failure to provide the assistance that customers anticipate can result in reduced customer satisfaction and, as a result, poorer retention rates.


And, if you can't communicate in a way that they understand, no one will trust that you can assist them.


Trust is one of the most crucial factors for SaaS companies’ success more than any other thing.  Here are some powerful methods to help you gain trust for you SaaS company 


2. Lacking of customer communication and assistance

According to a recent Slideshare survey, poor customer service is the leading cause of subscription cancellation for up to 67% of clients.


Another survey indicated that 25% of consumers would be prepared to pay more for services if it meant they would have a better customer experience.


Many SaaS companies, whether they recognize it or not, suffer from a lack of customer service which makes it the second biggest SaaS challenge in 2022


In these cases, arming your sales reps with a technology that allows them to deliver live support to prospects can help you avoid this entirely. 


Live chat software has the highest return on investment for customer service


In fact, live chat software has the highest return on investment for customer service, with 83% of customers saying that in-person customer care would have improved their experience.


During the assessment phase, providing live service on the site's landing page helps users find immediate solutions and answers to their problems. 


This also helps buyers to evaluate your goods more quickly while also giving them the idea that you provide lightning-fast customer service.


3. Saas startups support systems issues

Most SaaS company teams are, by definition, very excited about the fundamental features of their new service. 


And they frequently fail to see that an excellent product alone is rarely enough to keep consumers delighted over time. 


Onboarding, customer support, billing, and other supporting systems are equally crucial Saas challenges in 2022. 


Customers are considerably more likely to abandon your solutions if they encounter difficulty and friction in implementing and using them.


Let’s take onboarding new customers as an example of the 2022 challenge faced by Saas companies. How are we going to address this?


The simplest approach to avoid this is to manually onboard your users. Of course, this implies that you and your staff may be required to work additional hours. 


However, when you assist your clients better comprehend your products, good things can happen:

You'll get useful input to help you fine-tune your product-market fit.

You may make personal relationships that could lead to referrals and increase the lifetime value of your clients (LTV).

Improve client satisfaction and push more expensive subscriptions.

Find out which elements of your user experience need to be improved.


4. Prospects have a hard time seeing your SaaS startup's product value

Prospective purchasers will find it challenging to judge SaaS items due to the tremendous competition for the consumer's attention. 


As a result, they are wary of SaaS integration, with 33% citing that SaaS is too expensive and 29% claiming that migration and installation challenges are just not worth the benefits a SaaS solution may give.


Customers typically think of technology as cutting-edge, so they assume it must come with a large price tag, which is why this perception is so prevalent when it comes to SaaS.


Prospective purchasers will find it challenging to judge SaaS items due to the tremendous competition for the consumer's attention.


Customers that have such reservations about your SaaS solution are clearly unable to understand the actual benefits your SaaS product may give. Any SaaS software's goal is to make customers' jobs easier and more productive.


You'll have to rethink how you sell your product and its key characteristics in order to deliver value to the client. 


Focus on the customer's pain issues after you've figured out what they are and how your SaaS product can solve them better than the on-premise technologies they're using now.


5. Going global with your SaaS startup services

The final Saas challenge in 2022 we would want to mention here is globalizing your business.


SaaS is a worldwide enterprise. As a result, it is possible to sell it to anyone, anywhere in the globe. 


Would they feel the same way about your program or app if they were in Paris, Tokyo, or the United States? That isn't really certain.


If you decide to start in a country other than your own, you'll face challenges such as laws, languages, distinct cultures, working styles, and many more that might stifle your company's growth.


As a result, most SaaS businesses will face internationalization difficulty at some time.


SaaS is a worldwide enterprise. As a result, it is possible to sell it to anyone, anywhere in the globe.


Utilizing channel distribution is one strategy to develop worldwide. You may obtain worldwide coverage by partnering with a distributor in your target market and outsourcing your marketing, global channel enablement, sales, and support to them.


You use local resellers in such overseas markets when you use the distribution partner model. However, the success of such a strategy is contingent on your products' ability to be packaged with those of other suppliers in a way that adds value to prospects.


Conclusion: 5 big 2022 challenges all SAAS startups must overcome

SaaS isn't transactional; instead, it relies on customers' continued use across numerous paying periods. SaaS startups have several obstacles, therefore you must be well-prepared to deal with them.


Thank you for taking the time to read this article and consider the top 2022 challenges faced by SaaS companies. Get in contact with our team at Golden Owl if you're a SaaS startup wanting to expand and unleash the actual potential of your business.

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