Two Ultimate Mindsets for Building SaaS Products
One strategy-level mindset and one tactical-level mindset
In the realm of SaaS (Software as a Service) product management, there are several key mindsets that prove valuable across various industries. While it may seem peculiar to identify oneself as a “PM of SaaS products,” much like being a “manager of leasing business,” SaaS encompasses a wide array of industries, including Payments, CRM, OA, and many others. Here is one strategy-level mindset and one tactical-level mindset that can be beneficial to PMs, especially when transitioning from B2C products or entering the SaaS product domain for the first time.
Leasing Model Is the Essence of SaaS
At the core of SaaS, there’s a fundamental mindset: the business and products you deal with essentially operate on a leasing model. In SaaS, you’re effectively leasing or renting digital products to your clients. This realization can shift your perspective on the products you’re developing. Embracing this logic can be advantageous in the following ways:
- Product-Led vs. Sales-Driven: As a PM, you don’t have to be fixated solely on a product-led model. If a company describes itself as sales-driven, it’s not inaccurate. Both product management and sales play vital roles.
- Dual Lifecycles: A leasing contract isn’t a one-off transaction but a long-term relationship. Consequently, you must manage two lifecycles: the product lifecycle and the customer lifecycle. Neglecting either of them can jeopardize your product-market fit.
- Retention Is Key: Retention is a paramount goal for SaaS companies because you want customers to continue leasing your products. From a customer-centric perspective, you aim to become indispensable in their work life. This is where the significance of product development aligns with sales efforts.
User Privileges Are Ubiquitous
While there are many general principles and mindsets for PMs, there’s a special one that’s crucial for SaaS products: constant consideration of user privileges. This is especially relevant for PMs transitioning from B2C to B2B products. User privileges essentially revolve around one central concept: determining who can access what, where, when, and how within a SaaS product.
You’ll encounter questions like:
- Should employee Sam have access to his purchase history?
- What about his manager? HR? Internal admin? Customer support?
- How does Sam identify himself within the product?
- Should free users be able to use paid features or even see them?
Such questions are commonplace in SaaS product development and are particularly crucial during product discovery and delivery phases.
Stakeholders may sometimes overlook these considerations as they prioritize business performance.
Designers and developers might not have the necessary business context, often due to a lack of domain knowledge.
Users might assume that certain aspects are self-evident or forget to communicate their needs.
Designing and implementing user privileges will consistently pose a challenge for PMs. To tackle this, it’s wise to keep a simple template in mind, which can help refine user stories and features:
- Who can see What in Where and When, by How.
Adhering to this template can be remarkably effective for product discovery and delivery in the context of SaaS, ensuring that the nuanced aspects of user privileges are well-considered throughout the development process.
