5 costly mistakes founders make with their SaaS product

4 min readJun 26, 2023

Avoiding pitfalls to build a successful SaaS venture

Launching a Software as a Service (SaaS) product can be an exciting and rewarding journey for founders. However, it’s crucial to navigate the challenges with careful planning and strategic decision-making. We continually hear of the same sets of common, and often costly, mistakes SaaS founders make with their product time and again. Let’s explore what they are and ways to avoid them. By steering clear of these pitfalls, founders can set their SaaS venture on a path to success.

👉 1. Vague Positioning: The Importance of a clear value proposition

One of the critical mistakes founders make is having vague positioning for their SaaS product. Positioning defines how your product stands out in the market and the unique value it offers to customers. Without a clear value proposition, it becomes challenging to attract and retain customers or make a strong differentiation from the competition.

To overcome this mistake, founders should invest time in understanding their target market and customers’ pain points. Conduct market research, analyze competitors, and identify the specific problems your product solves. You’ll then craft a compelling value proposition that clearly communicates how your SaaS product addresses those pain points, differentiates from competitors, and delivers tangible benefits.

👉 2. No Customer Feedback: The need for continuous improvement

Another common mistake is neglecting to gather and act upon customer feedback. Building a successful SaaS product requires a deep understanding of your customers’ needs and preferences. By disregarding customer feedback, founders miss out on valuable insights for product enhancement and risk building a product that fails to meet market demands. Also, it’s important to understand priorities and time to market is almost certainly one. But with this priority, if executed effectively, your product or feature didn’t launch with perfection. That’s where customer feedback comes in once again along with the ‘work in progress’ mentality to leverage speed and iteration in the product cycle. But this benefit can only be realized with the continual use of customer feedback and analytics.

To avoid this mistake, establish channels for collecting customer feedback regularly. Implement user surveys, conduct interviews, or leverage in-app feedback mechanisms to gather insights directly from your users. Actively listen to customer suggestions, pain points, and feature requests. Use this feedback to prioritize product improvements, address user concerns, and continually enhance the user experience.

👉 3. No User Onboarding: The key to driving adoption and retention

One of the critical mistakes founders make is neglecting user onboarding. User onboarding refers to the process of guiding users through the initial steps of using your SaaS product effectively. Without a well-designed onboarding experience, users may struggle to understand the product’s value, leading to low adoption and high churn rates. One finding stated 74% of potential customers will switch to other solutions if the onboarding process is complicated.

To tackle this mistake, invest in designing a comprehensive user onboarding process. Provide clear instructions, tutorials, and tooltips to help users navigate your product’s key features. Consider interactive walkthroughs or video tutorials to engage and educate users effectively. A well-executed onboarding experience shortens a user’s TTV so they can quickly realize the product’s full benefits, reduces friction, and increases user adoption and retention rates.

👉 4. Feature Bloat: The danger of overwhelming complexity

Feature bloat, or the inclusion of excessive and unnecessary features, is a common trap for SaaS founders. While it may seem tempting to offer a broad range of functionalities, an overly complex product can overwhelm users and hinder their ability to derive value from it. Feature bloat also can bring along costly bottom-line implications as well, according to Forbes.

To avoid feature bloat, adopt a lean and customer-centric approach. Focus on core features that align with your target market’s needs and deliver value. Continuously evaluate feature requests and prioritize those that align with your product vision and have a significant impact on user experience. Emphasize quality over quantity and invest in refining existing features rather than piling up new ones.

👉 5. Poor Branding: Building trust and differentiation

Poor branding is another significant mistake founders make with their SaaS product. Branding encompasses the visual identity, messaging, and overall perception of your product. Neglecting branding can result in a lack of trust, difficulty in standing out from competitors, and missed opportunities to connect with your target audience. With branding, you’re able to leverage the emotions connected to customers’ needs to motivate them to use the services we offer, which is paramount for successful SaaS products.

To rectify this mistake, develop a strong brand identity that resonates with your target market. Invest in professional logo design, consistent visual assets, and compelling messaging that communicates your product’s value. Build a brand voice and tone that reflects your company’s personality and resonates with your audience. Consistency across all touchpoints helps establish trust, differentiate your product, and create a memorable brand experience.


Building a successful SaaS product requires founders to navigate potential pitfalls and make informed decisions. By avoiding common mistakes such as vague positioning, neglecting customer feedback, overlooking user onboarding, succumbing to feature bloat, and poor branding, founders can create a product that resonates with the market, delights users, and drives sustainable growth.

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opra is an B2B design agency that helps SaaS companies grow revenue and gain market share. opra.design