SaaS Moats

SaaS Moats

Supply Attacks    

1) Your customer builds your app with AI. Only need to replace 3 features they use.

2) Competitor reaches parity quickly.

3) Open source gets good enough.

4) The platform/integration partner ships your feature for free.

5) Custom software at SaaS prices - generic $99, built for you $299.

6) Model absorbs your product. You just became a wrapper.

Demand Attacks

1) Will your customer still exist

2) Are your seats (number of employee users) going away?

3) Does the step you manage still matter?

4) Is a human still the one using your software?

9 Reasons Customers Stayed

1) Unique features

2) Owned traffic channels

3) Clever code

4) UX familiarity

5) Integrations

6) High switching costs

7) Strong Brand - still in AI 

8) Coordination between people - still in AI

9) System of record - still in AI

8 Moats

1) Buyers know and trust you. ex: Ecosystems - Quickbooks or Shopify partners.

2) System of record - daily operations are built around you. ex: Jira, Gymdesk.

Gymdesk since door entry, etc.

3) You are authorized to make a payment (user can pay $ through the software).

4) They do not check your work. ex: gusto - w2 tax, avalara - sales tax.

5) Regulator, licenser, accredited, certified.

6) Everyone is already in it?

7) Every customer makes you smarter.

8) Hard to keep running.

Paths to :

1) Vertical tool

2) Point solution

3) Reporting