We are long past the gold rush era of SaaS, where a solid product could dominate its category with little competition and generate reliable profits.
The SaaS Landscape Has Changed
Today, there may be over 19,000 SaaS companies in the U.S. alone. Horizontal players are losing ground to vertical SaaS solutions focused on niche industries. Just analyzing the Martech sector requires a microscope—it’s that crowded.
The rise of AI, especially large language models (LLMs), is further intensifying competition. Coding is no longer a barrier to entry when tools like Claude can generate functioning software. Differentiating on product alone is no longer enough.
SaaS Services: The New Competitive Moat
How does a modern SaaS company defend its moat in a world of fewer technical differentiators? The answer is SaaS services.
Often undervalued and seen as a drag on gross margins, services are increasingly the factor that defines customer satisfaction and loyalty. A dedicated Customer Success Manager (CSM) can rescue a rocky product experience. An informed account manager can soften the blow of a price hike by consistently communicating the value being delivered.
What Customers Really Want: Enablement
One of the perks of working at Pricing I/O is speaking with a wide variety of customers across industries. The number one thing they want from their SaaS vendors? Enablement.
Not a flashy new feature. Not a rebranded ABM motion. They want expertise—someone who can teach them how to get the most out of what they already own. That’s where services shine.
Customer Interactions Matter
Our research consistently shows that interactions with the services team are one of the top three drivers of overall customer satisfaction. In a crowded SaaS market, people and relationships matter more than ever.
Your next breakthrough feature might go unused, but a great CSM will be used by every account they manage. Many customers are barely scratching the surface of what they already bought—they need help unlocking full value. Often, that’s also the biggest objection to an upsell: “I’m not even using what I have.”
Forget “Set It and Forget It”
The days of letting customers fend for themselves after onboarding are over. With countless alternatives available, CFOs are scrutinizing underutilized tools and cutting fat. You need to be indispensable—and that comes through services.
How to Evolve Your SaaS Services Model
1. Build a Best-in-Class Support System
If your self-help resources aren’t great, human support is non-negotiable. Documentation alone won’t retain customers unless you’re operating in a product-led growth (PLG) model. Your next upsell might already be in your customer pool—if you serve them well.
2. Track Customer Satisfaction Consistently
Surprisingly, many SaaS companies don’t track customer satisfaction metrics like NPS or CSAT. These should be core KPIs. Measure early, often, and across roles. Even better: track value delivered, not just sentiment.
3. Don’t Reserve CSMs Just for Enterprise
Even if your customer’s LTV doesn’t “justify” a CSM, consider the cost of churn. Great CSMs are cheaper than constantly replacing lost business. Customers want problem solvers and trusted experts—give them that.
Protect Your Base or Someone Else Will
If you aren’t certain your customers are happy, revisit your SaaS services model now. Because if you don’t, someone from the next generation of AI-native SaaS products will.
