Demand for SaaS (software-as-a-service) has grown rapidly in recent years as enterprises accelerate digital transformation (DX). In the corporate world, web-hosted software solutions delivered from one company to another, known as business-to-business software-as-a-service (B2B SaaS), are gaining attention.

This article aims to provide foundational knowledge of B2B SaaS, covering industry size, notable characteristics, success factors, and examples in Japan.

What’s in this article?

• What is B2B SaaS?
  
• Market size of B2B SaaS in Japan
  
• Features of B2B SaaS
  
• Key points for success in B2B SaaS
  
• Examples of B2B SaaS in Japan and around the world
  
• How Stripe can help
  

What is B2B SaaS?

Users access SaaS applications over the internet, and most offerings use subscription models. In the past, vendors typically sold software as one-time physical packages that clients installed and ran on their own computers. However, with SaaS, installing applications isn’t necessary. Instead, individuals can access it directly through a web browser and log in to start using it.

B2B SaaS refers to SaaS that has been specifically designed for business use and provided to enterprises.

Differences compared to business-to-consumer SaaS

As the terms suggest, B2B refers to dealings between organizations, while business-to-consumer (B2C) describes transactions in which a brand sells directly to individual consumers. B2C SaaS products often target individuals, and agreements are concluded depending on each customer’s personal decision rather than at a corporate level.

By contrast, B2B SaaS targets enterprises, so a single user rarely decides to subscribe. Teams typically evaluate the product and secure senior leadership’s approval before signing a contract.

Unlike B2C SaaS, where members can sign up and begin employing the service immediately, B2B SaaS often requires organizations to follow a step-by-step process within an internal structure. As a result, it tends to take a comparatively longer period before actual adoption begins. For instance, when considering SaaS, the employee in charge of rollout must meticulously compare costs, analyze cost-effectiveness across multiple providers, and carefully coordinate interactions with the final decision-maker.

Examples of B2B SaaS services

Common case studies of B2B SaaS include the following:

• Task and project management tools
  
• Schedule and calendar management tools
  
• Internal chat and social media platforms
  
• Online meeting tools
  
• Accounting software
  
• Business card creation and management tools
  
• Customer relationship management (CRM) platforms
  

Beyond these examples, there is a vast and diverse field of B2B SaaS offerings. It is no exaggeration to say these solutions are indispensable for employees to perform their daily work.

Market size of B2B SaaS in Japan

According to a 2024 survey by Fuji Chimera Research Institute, the market size for enterprise cloud software (including both SaaS and PaaS [platform-as-a-service]) in Japan is as follows. As you can see, every segment is growing year after year:

• Personnel management: ¥33.5 billion (139% YoY)
  
• EPM (enterprise performance management): ¥23.7 billion (131.7% YoY)
  
• Web database/no-code development: ¥20 billion (124.2% YoY)
  

The market will reach ¥3.6638 trillion by 2028, marking a 45.8% increase from 2023. Within this growth, the labor management systems segment will climb to ¥94 billion by 2028—3.9 times its 2023 size—fueled by strong DX demand in back-office operations.

Features of B2B SaaS

B2B SaaS has several characteristics and features that differentiate it from the perpetual license model.

Revenue structure is different

For B2B SaaS, usage-based (recurring) monthly billing is the standard. In other words, it’s an ongoing plan where customers keep using the product, but the monthly subscription revenue fluctuates depending on upselling and cross-selling.

Therefore, brands that offer B2B SaaS products can expect recurring income instead of one-time transactions, unlike those in the permanent license, buy-once approach. On the other hand, because it doesn’t generate significant standalone revenues, such as the permanent license model, the break-even point can sometimes be several months out.

Customer retention is the key to success

As mentioned above, B2B SaaS is a commercial model that generates revenue through recurring billing. In other words, if subscribers cancel their services, it will materially impact income. As a result, the key is not just acquiring new customers but also maintaining strong relationships with existing ones with a long-term perspective.

In turn, for businesses providing B2B SaaS, it is best practice to adopt strategies to ensure members continue to use the product and above all, to design and build a medium- to long-term revenue approach.

Large amounts of data can be collected

To strengthen client relationships, organizations need to analyze user metrics to understand their behavior better. In B2B SaaS, exchanges occur on an ongoing basis rather than as standalone purchases, which generates a much larger volume of interaction insights than traditional one-off sales methods.

For instance, by collecting and analyzing a wide range of data, including product adoption frequency, activity patterns, and purchase frequency, businesses can develop stronger outreach tactics. Identifying areas for improvement through usage metrics can open up new opportunities, such as redesigning and creating offerings that deliver greater value to customers.

Key points for success in B2B SaaS　

Now that we are familiar with the characteristics of B2B SaaS, let’s look at the key points for achieving success in this field.

Retention rate and number of users

The number of users and their retention rate are both significant for B2B SaaS. Hence, it is important for all departments, including marketing, sales, and customer support, to work together as one, adopting team-specific approaches focused on client needs to strengthen engagement.

For example, if a certain product has a high churn rate, it is necessary to establish an organizational structure capable of identifying churn causes, devising countermeasures to reduce it, and implementing them.

To grow a B2B SaaS business, it is also best practice not just to focus on revenue retention rates from existing users but to actively acquire new customers. Accordingly, for potential individuals interested in your company’s services, it could be beneficial to take a more personalized approach after fully understanding their requirements.

Increasing the added value

To maximize profitability in a B2B SaaS business with a unique income structure, enhancing the brand’s distinctive value proposition is highly relevant. To achieve this, be mindful of differentiating your company from competitors in terms of quality and pricing, while monitoring trends in the industry.

Additionally, if relatively inexpensive plans or products are frequently purchased, it might be worthwhile to explore upselling and cross-selling methods to generate added revenue.

To maximize customer lifetime value (LTV), provide thorough support that helps people recognize the benefit of your products. Actively listen to their expectations and concerns through proactive communication, and deliver solutions that address their needs.

Delivering customer-centric services

While this is true for any business, in B2B SaaS in particular, providing flexible services that closely align with customer requirements is especially important for enhancing competitiveness in a continuously growing market.

Particularly, feedback from decision-makers with relatively high profitability and from clients facing challenges where improvements could yield significant results is markedly valuable. By proactively executing steps for these groups, you can deliver better support.

Quickly recovering costs

Customer acquisition cost (CAC) tracks the expense of gaining a new client. For B2B SaaS brands, quickly recovering CAC is a main milestone for success, as the length of the recovery period directly affects cash flow. Therefore, if the payback timeframe exceeds the initially planned date, it is necessary to identify measures to accelerate cost recovery.

Many consider a recovery period of one year or less ideal; when it runs longer, investment efficiency declines.

Harnessing customer data

By harnessing customer data effectively and as extensively as possible, organizations gain a deeper view of their needs and can deliver offerings that better reflect their perspective. To achieve this, it is worth noting to begin by collecting usage metrics, then properly structuring and analyzing them.

Further, by aggregating and managing these details in a single platform, multiple divisions can share the latest, most accurate information in real time. Implementing this management system and establishing a framework that provides on-demand access drives smooth collaboration across groups.

Examples of B2B SaaS in Japan and around the world

Let’s take a look at some B2B SaaS brands both in Japan and internationally.

Japanese examples

Sansan

Sansan, a leading B2B SaaS brand, provides cloud-based business card management services for corporations. It has a deep understanding of the country’s unique professional contact card culture and can flexibly accommodate enterprise requirements, including online cards. It is not solely focused on business cards, but it allows centralized administration of corporate details, sales history, and meeting reports, creating a platform that facilitates straightforward sharing of client data across the entire company.

When handled in paper form, business cards are difficult to file and sort. There is further the risk of losing or damaging them, and if details become concentrated in the hands of a sole employee, it could hinder the discovery of potential customers. Nevertheless, uploading contact cards to the Sansan network enables them to be fully utilized as internal assets, driving faster client acquisition.

dataX

dataX (formerly FromScratch) is another top B2B SaaS brand in Japan. dataX provides the marketing cloud system “b→dash” for enterprises. This service helps corporate employees in achieving effective data-driven outreach.

b→dash offers a full host of features for analytics-based marketing, allowing clients to expand and apply its functionality as their needs grow. The platform supports no-code development, reducing the burden on engineering staff and allowing members to configure and organize records without advanced technical skills. As a result, users can handle data import, integration, processing, consolidation, and extraction through a simplified and efficient workflow.

Astrolab

Astrolab delivers a suite of B2B SaaS solutions for web-hosted information management, including Equipment Management Cloud, Contract Management Cloud, and Consumables Management Cloud. Let’s take a look at the Equipment Management Cloud service as one case study.

The Equipment Management Cloud solves companies’ equipment-related headwinds by consolidating all equipment administration tasks within a centralized setup. To illustrate, specific challenges companies face include long inventory processing times and the inability to locate stock asked for checkout. How this solution can address these issues is shown below (keep in mind that the features listed represent just a portion of its capabilities, and numerous additional functions are available as well):

• Inventory tasks require substantial time: The framework identifies the users or departments responsible for inventory checks, automatically sends notification emails, and assigns the required tasks. Requests for photo-accompanied reports are also possible, which helps prevent false reporting.

• The platform cannot locate the checkout item: The process requires the requester to confirm the item’s availability in the system before submitting an application. This step enables the receiving party to approve the inquiry smoothly and simplifies the overall checkout and lending workflow. In addition, equipment locations are clearly marked, reducing the duration spent searching for goods and the risk of loss.

International examples

Google

Best known for its worldwide search engine, Google delivers a variety of B2B SaaS offerings. Some examples include Google Sheets for accounting software and Google Docs for word processing.

Google also provides Google Workplace, a web-hosted groupware suite for enterprises. It supports simple collaboration and data distribution across tools such as Gmail, Google Meet, Google Drive, and Google Calendar, regardless of location or device.

Slack

Many companies widely adopt Slack as a business communication tool.

Slack is well known for its strong information-sharing capabilities—e.g., the ability to share program code—while keeping a casual, chat-style experience. The platform integrates with external tools, including Google Calendar and Zoom, consolidating scattered details into a centralized workspace and driving faster, straightforward communication.

How Stripe can help

Stripe Billing lets you bill and manage customers however you want—from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes—no code required—or build a custom integration using the API.

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage, and more. Support for coupons, free trials, prorations, and add-ons is built-in.

• Expand globally: Increase conversion by offering customers’ preferred payment methods. Stripe supports 125+ local payment methods and 130+ currencies.

• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over $6.5 billion in revenue in 2024.

• Boost efficiency: Use Stripe’s modular tax, revenue reporting, and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.

Learn more about Stripe Billing, or get started today.