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Software as a Service (SaaS) platforms have revolutionized how businesses operate in horizontal and vertical technology spaces, offering a wide range of tools and services for managing all aspects of operations. One significant trend that’s emerged over the past few years is the move towards multiproduct SaaS platforms, which offer customers a suite of tools to meet various needs.
While some SaaS platforms specialize in a single product, such as project management or payroll, there are many benefits to offering multiple products under one roof. Here are a few reasons all SaaS platforms should aspire to be multiproduct.
Multiproduct Benefits for SaaS Platforms
- Increased Revenue and Customer Lifetime Value
- Better Customer Retention
- Streamlined User Experience
- Competitive Advantage
- Flexibility and Scalability
Increased Revenue and Customer Lifetime Value
Offering multiple products can increase revenue and customer lifetime value (CLTV) by providing customers with a wider range of solutions. Instead of paying for separate subscriptions to different products, customers can save money by bundling them together. Additionally, when customers already use one product and discover another useful tool within the same platform, they are more likely to try it out and become long-term customers.
Increased Recurring Revenue
One of the most significant benefits of being a multiproduct SaaS platform is the potential for increased monthly recurring revenue (MRR). With each new product or service offering, you can capture more revenue from your existing customer base.
For example, let’s say you run a SaaS platform that allows employers to track employees’ professional development and employees to map out career paths. You could offer add-ons like hiring, onboarding, and benefits for a more holistic HR experience. By providing these additional products, you give your customers more options to customize their experience and tailor the platform to their needs.
The more customers purchase additional products or services, it increases their overall value to your business. This means they are more likely to stay with your platform long-term, leading to increased MRR.
A 10-12% growth rate is considered a healthy MRR increase.
Cross-Selling and Upselling Opportunities
Multiproduct SaaS platforms can take advantage of cross-selling and upselling opportunities by offering customers complimentary products. For example, a project management platform may also provide time-tracking software or a collaboration tool. When customers see the value in these additional products, they may be more likely to purchase them, which can increase revenue for your company.
Better Customer Retention
Multiproduct SaaS platforms can improve customer retention by providing more value to customers. When customers use multiple products on one platform, they are more likely to continue using the platform because it becomes a central hub for their business needs. They may also be less likely to switch to a competitor if the multiproduct platform has more of the tools they need in one place.
“App fatigue”—toggling between different saas applications—is a real thing, causing frustration and wasting employees’ time. Over the course of a year, the average employee spends up to five working weeks (9% of their time) toggling between apps. Becoming multiproduct enhances the employee experience and cuts down on all this toggling.
Streamlined User Experience
When customers are using multiple products from the same platform, they benefit from a simplified user experience. They don’t need to learn how to use a new tool or switch between different interfaces, which can save time and reduce frustration. This can lead to increased customer satisfaction and loyalty.
A Competitive Advantage
Offering multiple products can help a SaaS platform increase its market share by appealing to a wider range of customers. A platform offering a suite of tools can attract businesses with different needs and requirements. For example, a platform that offers both project management and customer relationship management tools can appeal to companies in different industries and at various stages of growth.
Data shows that if you’re trying to achieve $10 million annual revenue (AR), then having a single product helps you grow at a quicker pace, but to go from $10 million to $100 million AR, multiproduct companies grow at a much faster rate than those with just one solution.
Flexibility and Scalability
Multiproduct SaaS platforms are more flexible and scalable than single-product platforms. As a business grows and its needs change, it may require additional tools and features. By offering a suite of products, a SaaS platform can give customers the flexibility to choose the tools that meet their changing needs.
When Should a Tech Company Go Multiproduct?
Though we advocate for tech companies going multiproduct, it’s not a decision to be taken lightly. When is the right time? Check out the next blog in our multiproduct series, When a Tech Company Should Go Multiproduct, to learn more.
Become Multiproduct With a Proprietary Hiring Solution
Multiproduct SaaS platforms offer many benefits, including better customer retention, increased revenue, a competitive advantage, and scalability. Starting on the path to becoming a multiproduct SaaS platform can be a daunting task—developing a new solution from scratch is time-consuming and expensive—but it doesn’t have to be.
White labeling a new solution can have you become multiproduct quickly and efficiently. Here at HiringThing, we white label our application tracking system (ATS), hiring software built to streamline and strengthen the recruiting process. We also have a private label model that takes things a step further than white labeling and allows you to customize the software to meet the specific needs of your business.
Hiring is an evergreen need that all industries are struggling with right now. Hiring solutions are an organic fit for SaaS platforms of all types—learn more by checking out our Ultimate Guide to Creating a SaaS White Label Partnership or schedule a demo to chat with one of our business development specialists and see how we can help you become a multiproduct solution.
About HiringThing
HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable HR technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the HiringThing HR platform empowers anyone, anywhere to build their dream team.
