SaaS: What Is It, And How Does It Work?

Big brands like Google and Microsoft have been dishing out software as a service (SaaS) for many years already. Both consumers and businesses benefit from SaaS the most, thanks to a wide range of innovative features.


Over the years, SaaS has gone through a lot of changes. Before it was just an optional tool, but now it is almost a must for every business. Without it, your business is at a tremendous disadvantage.


Common examples of SaaS include Google Workspace (formerly known as G Suite), Dropbox, Slack, and WebEx. These have been providing users with a more convenient way to run their daily operations.


However, did you know that you could also use SaaS for digital marketing? Here’s what you need to know about SaaS for business and marketing.



What Is SaaS?

SaaS is a delivery model in which users can subscribe to access centrally hosted software services. It is also a part of cloud computing, same with other related services such as platform as a service (PaaS), infrastructure as a service (IaaS), and desktop as a service (DaaS).


The concept of SaaS and centralised hosting has been around since the 1960s when mainframe providers like IBM offered database storage services to organisations worldwide. During the 1990s, the Internet became popular, thus introducing a brand new type of centralised hosting. A few years later, specifically in 1998, the earliest model of SaaS was born.


Each SaaS is unique and provides users with various benefits depending on the developer’s expertise. While not all SaaS tools are the same, they share similar characteristics, such as:


  • Subscription-based payment
  • Automation
  • Data security and privacy
  • Scalability


The only downside of SaaS is that you need a stable Internet connection. A slow and unreliable Internet connection will only make it harder for you to use SaaS. Also, even though it is unlikely for your SaaS to discontinue, there is still a chance that could happen. As a result, you might lose months or years of hard work and data.


Nonetheless, SaaS is a viable tool for business. As long as you have a reliable Internet connection and a decent computer or mobile device, you are free to use SaaS anytime and anywhere.



How Does SaaS Work?


Developers host SaaS applications online to provide users with a variety of tools. You can access your SaaS tool on a web browser or through an application. SaaS comes in many forms, such as:


  • Customer relationship management (CRM) software
  • Payroll processing software
  • Human resource management (HRM)
  • Messaging application
  • Accounting software
  • Content management (CM)


These software applications are valuable for running daily operations more efficiently. You can improve productivity by giving you and your colleagues SaaS that specialises in your area of expertise.


Marketers can also reap the rewards of using SaaS for marketing. Many SaaS tools contain features that you can use to improve your marketing efforts. Consider using SaaS tools like HubSpot, Grammarly, and Google Analytics to gain leads and monitor your SEO services.



The Benefits Of SaaS

SaaS can help your business grow. However, when it comes to marketing, how can SaaS benefit your business?


1. Gather Information More Efficiently

Digital marketing is all about gathering data in the most efficient way possible. Information is your greatest asset, so you have to obtain valuable info from your target audience if you wish to expand your business.


Fortunately, SaaS can make information gathering more efficient and convenient. Using SaaS allows you to secure valuable information in a safe and well-protected storage space. Your cybersecurity measures will ensure your data is secure at all times.


2. Improve Customer Retention Rates

Customer retention is key to growing your business. Current and returning customers are the lifeblood of your products or services, so you have to engage with them and earn their trust.


Try using SaaS to keep a record of all your previous and current customers. Tons of SaaS centred on data analytics lets you analyse your customers. Some SaaS applications even come with predictive insights that will help you make better-informed decisions in the future.


3. Manage Your Budget

SaaS is highly scalable, meaning you can manage your budget anytime. The online payment model allows you to pay whenever you need, as long as you do so before the given deadline.


Also, with the scalable nature of SaaS, you can pay for the tools that you only need. Since it relies on a centralised hosting platform, SaaS lets you change your payment plans easily.




Cloud computing is not only influencing the IT industry but the SEO industry as well. The benefits of SaaS affect all types of industries, so consider using one for your business to boost sales, gain leads, and improve productivity.


For more valuable information on digital marketing, contact our SEO agency in Singapore at 6391-0930.