Is one enough? The SaaS strategy dilemma Single- vs. Multi-product approach

The choice between a Single-Product and Multi-Product strategy shapes pricing, go-to-market approaches, and customer retention. Looking at the top SaaS players, the market is split—about half follow a single-product strategy, while the other half, the giants, embrace a multi-product approach.

The main goal of a multi-product strategy? Simple - make switching so painful that customers don’t even consider it. Once an enterprise is fully set up, moving away becomes a nightmare.

Think about it: Would a company really go through the hassle of switching from Microsoft to another operating system? Or migrate away from Salesforce after building its entire workflow around it? Probably not. The more products a company offers that seamlessly work together, the harder it is for customers to leave - and that’s exactly the point.

Let’s break down the key differences:

Feature	Single-Product	Multi-Product
Focus	Deep specialization in one category	Broad solution suite across multiple needs
Customer Retention	High for niche users	High due to ecosystem lock-in
Revenue Growth	Limited upsell potential	Strong upsell & cross-sell potential
Complexity	Simpler sales & messaging	Requires strong product integration
Example Companies	Notion, Canva, Slack	Salesforce, Atlassian, HubSpot

Multi-product companies don’t just launch random new products - they follow clear patterns:

Expanding from a core offering, many successful companies start with a strong, focused product and then scale into adjacent areas.
- Example: Atlassian began with Jira, then expanded into collaboration (Confluence), DevOps (Bitbucket), and IT service management, building a complete ecosystem for enterprises.
Bundling solutions instead of selling standalone products, SaaS companies bundle them into a unified offering (suites), making purchasing simpler for enterprises while increasing stickiness.
- Example: HubSpot bundles marketing, sales, and operations tools into an all-in-one growth platform, reducing the need for multiple vendors.
Cross-selling & upselling to existing customers SaaS companies leverage their customer base by adding complementary features or products, encouraging users to deepen engagement.
- Example: Zoom expanded from video conferencing to add AI Companion and phone solutions, increasing per-customer revenue.
Strong lock-in through interconnected tools by deeply integrating products, companies create ecosystems that make switching costly and inconvenient.
- Example: Microsoft’s suite—Office 365, Teams, Azure, and security tools—works seamlessly together, making enterprises dependent on its ecosystem

Need help with product strategy? Book a call with Maciej!

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Maciej Prokop

🗓️ Book a meeting here: calendar

🔺 Pricing Expert at Valueships

📥 [email protected]

👋 https://www.linkedin.com/in/maciej-prokop/

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