Personalization as a Service: A new SaaS Business model in 2025

Summary

If you work in the SaaS industry, you know that it can become standard and monotonous.

How about we introduce you to Personalization as a Service?

It can ensure that your clients will have their customers flocking to them like sheep to a green pasture by the power of personalization.

Key Takeaways

Ø  Do you need hyper personalization for SaaS?

Ø  Are you confused about Personalization as a Service and Personalized Service?

Ø  Are you looking for AI personalization for SaaS?

Table of Contents

1. A few facts about Personalization as a Service (PaaS) 
2. What is Personalization as a Service or PaaS?
3. What are the benefits of Personalization as a service?
4. Personalization as a Service vs Personalized Service

⤷ What is Personalized Service? 

⤷ Why is personalized service important?

⤷ PaaS vs Personalized Service: The Significance 

5. How can SaaS companies offer Personalization as a service or PaaS?
6. Conclusion
7. FAQs

User personalization and hyper-personalization are the ongoing trends of 2025 in the digital world.

Brands are being rewarded by their customers for offering customized solutions via their services and products.

Personalization as a service or PaaS is an evolving and new SaaS business model.

We know you must have heard about platform as a service, or PaaS which represents Cloud computing.

But let us be one of the firsts to introduce you to a new SaaS business model, aka Personalization as a Service. 

Read the newsletter carefully if you are a SaaS business owner, a project manager, a SaaS expert, a developer, a tech expert or a student.

A few facts about Personalization as a Service (PaaS)

• 90% of the marketers have seen better ROIs (return on investment) via personalization.

• 82% of the customers are ready to share their personal data if it helps in delivering personalized UX.

• The global spending on SaaS reached USD 247.2 billion in 2024, while in 2025, it is expected to cross USD 295.08 billion.

• SaaS represents more than 50% of the software market and 36.6% of the cloud computing market.

• On average, a company uses 112 SaaS apps.

Fig 1: A bar graph representation of the SaaS app usage in comparison to the company employee strength. [Source: Backlinko]

What is Personalization as a Service or PaaS?

Mr Leonard Berry in the 1980s coined the term “relationship marketing”, which meant that marketing can be done by building customer relationships.

And in 2000s, Personalization as a service emerged to better explain, understand and implement the richness of user experiences.

In 2025, when customers have endless options, the assurance that they will land on your website and app to buy your brand’s offerings is difficult to guarantee.

PaaS or personalization as a service, can make it happen to help brands stay relevant and achieve exponential growth.

Personalization starts from,

• Messages,

• Recommendations,

• Offerings, and continue forever.

To achieve this, the software being used by businesses must be customizable on the go, and Personalization as a service ensures such software solutions.

For better understanding, let us understand Personalization as a service in its various forms.

Cloud-based Model

Personalization as a service or PaaS is a cloud-based software architecture model that combines customer data and content from various sources.

It then delivers brands opportunities to render personalization across all their channels.

Software Licensing Model

As you know, SaaS, or software as a service, offers software on a subscription basis via cloud services.

Well, now with PaaS, you get to personalize the user experience of this software without the users manually adding their preferences (every time).

In other words, user data is constantly analyzed and leveraged to deliver hyperpersonalized experiences via Personalization as a service.

What are the benefits of Personalization as a service?

Before we dive into the benefits of Personalization as a service or PaaS, you must remember that it is a cloud-based service.

And a cloud service can be easily deployed into various existing systems and technologies without a total overhaul.

Now let us get to know its benefits.

Fig 2: A graphical representation of the benefits of Personalization as a Service.

Composable Architecture

Composable architecture allows a system to have all of its parts connected in such a way that new functions can be developed by combining the existing ones.

Via this SaaS product personalization, the system will be much more flexible, scalable and quicker (in reacting), helping with a big business push.

Personalization as a service leverages cloud-driven composable software architecture to deliver custom user experiences on the go.

Omnichannel Personalization

Omnichannel marketing has been the need of the hour in the marketing domain, as the world now interacts on various digital platforms on a daily basis.

It helps in delivering constantly customized customer experiences, or CCC.

Personalization as a service (PaaS) helps in ensuring a 100% implementation of omnichannel marketing, which would otherwise be a hassle, to say the least.

Client Retention

If a brand caters to its clients with such caringly customized experiences, then why would the clients ever switch to some competitor?

Thought Leadership

Thought leadership in the industry is built by satisfied customers and the latest tech & trend inclusion.

Personalization as a service is thus also the way to a major or complete dominance of your market.

Massive ROI Boost

When everyone in your industry looks up to your brand, then imagine the kind of ROI numbers your accounting team will be dealing with.

The advantages of Personalization as a service are thus endless and depend upon its usage.

Personalization as a Service vs Personalized Service

One might get confused between the two, and that’s why we bring this discussion to clear the doubt.

What is Personalized Service?

Any service that has been customized as per the customer is known as personalized service.

It needs hands-on or one-to-one attention.

That’s why personalized service falls under the luxury category and cannot be mass-produced and marketed.

Why is personalized service important?

To woo your clients, customers and users, your brand must deliver something out of the ordinary, and you cannot always invent something new.

So, a company chooses personalized services instead and keeps the buyers happy.

PaaS vs Personalized Service: The Significance

Now, the brands can deliver personalized experiences to all of their customers using Personalization as a service.

This guarantees that all the customers become loyal brand advocates.

How can SaaS companies offer Personalization as a service or PaaS?

If you are a SaaS company, then you already are halfway there; you just need to make the four modifications, and you too can offer PaaS.

Fig 3: A graphical representation of the four upgrades to craft Personalization as a Service experience.

The modifications are as follows:

Customized User Experiences (UXs)

Via personalizing dashboards, recommendations, content and more based on the user behaviours, preferences and historical data, SaaS companies can deliver personalization as a service.

Using ML, or machine learning, the SaaS algorithms can continuously adapt the content and features to deliver the dynamically tailored customer experiences.

Advanced Segmentation & Targeting

Using advanced audience segmentation tools, SaaS companies can cater to personalization as a service.

As these tools help in segmentation based on location, industry, usage behaviour, pricing model and other user traits.

In short, businesses can now craft specialized campaigns and business workflows for every audience segment.

AI-driven Recommendations

By a combination of AI (artificial intelligence) and ML, SaaS businesses can deliver the best possible user personalization.

AI personalization for SaaS approach leads to Personalization as a service via optimizing customer journeys and suggesting best practices & upgrades.

In the end, it will lead to deeper customer relationships and boosted retention.

Real-time Personalization

SaaS solutions can be personalized using real-time user data via their behavioural analysis.

Be it a change in alerts, prompts or relevant features, SaaS software can be so much more than it already is.

And by leveraging the real-time approach, the user satisfaction and engagement rate can be boosted for a SaaS product.

Are you ready to offer Personalization as a service or PaaS?

Conclusion

Your business can either keep up with the competitors or leave them behind; it’s your choice.

Personalization as a service (PaaS) is one of those tools that will deliver the second choice.

All you need now is a reliable software development company which can create a PaaS for you…

Wildnet Technologies is a leading Digital Transformation company in India that is helping its clients across the globe to deliver the hyperpersonalized user experience via omnichannel marketing, Personalization as a service or PaaS and more.

If you like to know more,

> AI-powered Omnichannel Marketing: Transforming Customer Journeys

> Why Custom Software Development is Essential for Niche Industries? 

> Wildnet’s Digital Glossary

Contact us now at info@wildnettechnologies.com and let PaaS change the way users perceive your brand.

FAQs

FAQ 1: Why is personalization so important?

Ans: 62% of the customers left their beloved brands because of standard user experiences.

And when just 32% of the businesses are currently delivering hyperpersonalization, the importance of personalization is undeniable.

So, either you start personalizing customer experiences or the customers leave you.

FAQ 2: Which brands are leading the personalization race?

Ans: Amazon, Nike, Adidas and Sephora are making heads turn due to their remarkable user personalization in 2025.

FAQ 3: How does Google support personalization?

Ans: Google via its core updates in 2024, ensured that only user-centric content gets ranked on its search engine result pages (SERPs).

Brands that were customizing their website content for the best user experiences were rewarded with better rankings.

While the brands that simply wanted better SEO ranking were punished with poor rankings as well as physical Google penalties.

If you faced such a penalty, you can try our Google Penalty Recovery Service.

FAQ 4: Which are the best SaaS personalization platforms in 2025?

Ans:  The best SaaS personalization platforms in 2025 are as follows:

• Zylo

• Zluri

• Spendflo

• BetterCloud

• Torii

Now, you can go to these platforms and use their SaaS personalization tools accordingly.

FAQ 5: Which are the best AI tools for personalization in SaaS platforms?

Ans: The best AI tools for personalization in SaaS platforms or AI-SaaS personalization engines are

• AWS AI

• Microsoft AI

• OpenAI

• Databricks

• Flatlogic Generator

So, give AI-based personalization in SaaS a whirl..