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MH Tsai

Maximizing LLM for SaaS Success: Cost Savings, Time Efficiency, and Revenue Growth

When evaluating how LLM could benefit your SaaS business, you can break it down into 3 categories to clearly analyze the values of LLM. If the LLM features you plan to build for your clients fall into one of these categories, there's a higher chance that your clients will pay for the AI feature. Moreover, if a feature fits all three categories, then it's essential to build.

Does it help clients save costs?

This question is crucial when a client decides whether to purchase this feature. As the client invests more in the SaaS, does it save them costs in other aspects? A clear example is the customer support chatbot with LLM; a well-functioning chatbot could significantly reduce the number of employees needed for different shifts.

Does it help clients save time?

If it doesn't directly save costs, the next consideration is whether it can significantly save time on certain tasks. Can generative content reduce the time of their onboarding process by prefilling relevant content? Or perhaps LLM can organize internal documents efficiently.

Does it help increase revenue?

This category examines if the generative content provided by your LLM feature directly contributes to revenue. This is the most challenging category, but if a feature fits here, it solidifies its value. For instance, if an LLM feature could drive sales on the client's side by analyzing user behavior and converting inquiries into purchases, such features could command higher pricing due to their direct impact on revenue, allowing for monthly subscription fees, commissions, or usage-based pricing.

These three categories can help you identify the value your upcoming LLM feature could provide and even motivate your clients to pay for it. However, it's important to remember that developing these LLM features does involve some costs.

2024 ❤️ MH (Frank) Tsai