We can all agree that the digital world has the market cornered on one thing: excessive abbreviations. If you’ve heard the term SaaS and SaaP, you either know what they are, know what one is, or have no clue what we’re talking about.

Chances are, you’re like the majority of people: You looked it up on Google, learned what SaaS and SaaP stand for, but don’t understand WHAT they are. This blog is for you.

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What is SaaS?

SaaS, or software as a service, is a cloud-based software solution. SaaS businesses provide a service to users via the internet or through an app. PaaS, or platform as a service, and IaaS, infrastructure as a service, also provide a cloud computing-based solution or service. This kind of service usually involves an ongoing membership or subscription. If you pay monthly to use the Adobe suite, subscribed to Zoom, or have a Netflix account, you’ve used SaaS.

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What is SaaP?

Remember the ‘90s? When you paid once for a CD of Microsoft Word, installed it on your computer, and had it for life (or at least the life of that computer)? That was SaaP, or software as a product. A customer may be looking for SaaP because of its offline usability and increased security. 

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Is SaaS better than SaaP?

Ultimately, the difference between SaaS and Saap is like owning vs. leasing. Look at it this way: A monthly gym membership is like SaaS. Buying your own equipment and building a home gym is SaaP. 

SaaS is more cost-effective. Seeing as technology changes so rapidly, sometimes outright owning a product doesn’t save you money in the long run. Remember that Microsoft product from the ’90s? Imagine that same iteration now. In reality, you would’ve had to purchase at least four different versions of Word to use the most updated — and most secure — version. Having a subscription to Microsoft that automatically updates to the latest version can be more cost-effective. However, a SaaP solution means more customization and enhanced security.

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How do marketing SaaS and SaaP differ?

Marketing software is challenging. The one key difference between marketing SaaS and SaaP is free trials. 

Free trials are the best secret weapon a SaaS marketer has in their arsenal. A great marketing funnel approach for SaaS is to develop a CTA around a free trial offer. Due to the subscription nature of SaaS, a free 10-day trial, or even a free month, could be enough to secure a new long-term customer. 

Unfortunately, this doesn’t work as well for SaaP. A SaaP business could have a free product option with locked features, but this would still mean downloading the free option, using it, uninstalling it, and downloading the paid version. This process is cumbersome enough to turn away customers.

A better marketing approach for SaaP businesses would be focusing on word-of-mouth marketing and reviews. Software as a product usually comes with a higher price tag. For instance, when someone buys a car, they often read reviews online first. Does it have any common mechanical issues? Is it safe? This process of seeking out proof of product performance is standard with larger ticket items. SaaP companies should therefore focus on a content marketing strategy that involves reviews and satisfied customer highlights. 

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What kind of digital marketing plan do you need?

Are you a SaaS or a SaaP business looking for help? At Ghostit, we specialize in helping companies create comprehensive content strategies and marketing plans that work for their unique market and offering. We understand the difference between you and the other guy. Get in touch today, and let’s take your marketing to the next level tomorrow.