SaaS

Rethinking Platform Loyalty: How SaaS Marketplaces Are Transforming Vendor-User Relationships

David

May 17, 2025

SaaS marketplaces are disrupting traditional loyalty, shifting allegiance from individual vendors to the platforms themselves and transforming the dynamics of the software industry.

In the not-so-distant past, the concept of “loyalty” in software-as-a-service (SaaS) was straightforward. Vendors wooed users with tailored perks, robust onboarding, and carefully constructed loyalty programs designed to keep clients coming back, and paying recurring fees. Churn was the bogeyman; retention and lifetime value the holy grails. But an increasingly dominant force is upending this familiar calculus: the rise of SaaS marketplaces. As business IT consumption consolidates within platforms like AWS, Microsoft Azure, and Salesforce AppExchange, loyalty itself is being redefined, not toward individual vendors, but the very marketplaces that mediate the relationship between buyer and seller.

The gravity of this shift cannot be understated. It doesn’t just impact how software is bought and sold; it recasts the balance of power among vendors, users, and the marketplace stewards in between. In this new landscape, the nature of “loyalty” is less a bilateral affair and more a dynamic, platform-powered network effect.

The Golden Age of Direct SaaS Loyalty

Loyalty programs in SaaS once followed a formula, albeit an evolving one. As digital products, SaaS tools lent themselves to sophisticated, data-driven personalization. Savvy vendors employed tiered benefits, offering discounts, early feature access, premium support, or community membership for increased usage, referrals, or public advocacy. Research found that customers enrolled in such programs spent 67% more, and referred users, those lured by rewards, delivered a 16% greater lifetime value than standard signups. AI-powered engagement tools, meanwhile, made it possible to nudge the right customer at the right moment, driving engagement levels significantly higher.

The aim was sticky, symbiotic relationships. SaaS was special in that its revenues didn’t just depend on acquisition, but on ongoing trust and usefulness: the infamous subscription model. Vendors obsessed over metrics like monthly recurring revenue and net retention rates. Communities, both digital and sometimes even in-person, centered client attention, anchoring loyalty with human ties as much as digital ones. Point systems evolved into holistic experiences, but the target remained unwavering: keep users close, and they’ll keep paying.

The Marketplace Tsunami, and Why It Matters

Enter the SaaS marketplace. Now an $8 billion segment and growing fast, these platforms promise that users needn’t manage a jungle of vendor relationships, contracts, and bills. One login, one payment, one procurement process, solutions from dozens or hundreds of vendors, unusually interoperable. At first, this seemed like a better distribution channel for savvy vendors. Yet underneath, a tectonic shift was forming.

For partners, consultants, resellers, and systems integrators, marketplaces quickly changed priorities. “Partners are happier working with fewer vendors, doubling down on those that contribute the most to their bottom line and putting significantly more resources in place to build deep expertise within those ecosystems,” noted Channelholic's Jay McBain. The days of dozens of vendor relationships were giving way to a focused, platform-geared strategy.

Even end-users began realigning habits. Rather than loyalty to a single tool, businesses gravitated toward platforms offering a “just add water” stack, analytics, CRM, security, collaboration, sourced, metered, and managed in one location. Loyalty programs and points? Increasingly, they’re aggregated across the platform, not vendor-specific, so users are incentivized to stick with AWS or Microsoft, and try apps within that environment.

Vendor-User Ties: From Exclusive to Ecosystem

This shift may sound subtle, but its effects are profound. Where loyalty was once a vendor’s game to win, today it’s the marketplace that holds the cards. Vendors must now compete not just with their traditional rivals, but with every other tool on the shelf, often mere clicks away, with frictionless trials and one-bill payment. Discoverability is the new loyalty: Vendors pour energy into securing better placement and “stickiness” within dominant marketplaces.

Moreover, user behavior adapts to this new terrain. Buyers are drawn to the convenience of unified rewards, billing credits, platform-level discounts, or special bundles that span vendors. A single purchase triggers platform-wide perks, making it emotionally and financially easier to try multiple tools under that marketplace’s roof. According to recent findings, cross-vendor marketplace loyalty can increase order volume several-fold.

For vendors, this means the battleground moves to platform optimization. Success depends on being “app store ready”, the right integrations, satisfying the marketplace’s onboarding protocols, leveraging co-marketing opportunities, and even sharing in the platform’s data ecosystem. The vendor’s brand is still vital, but it must coexist and compete in the context of the marketplace’s identity.

This triadic relationship, vendor, user, and marketplace mediator, upends measurement paradigms, too. Instead of focusing exclusively on vendor net promoter scores or product retention, success is increasingly defined by platform adoption rates, basket size (i.e., the number of products bought together), and cross-vendor retention. In other words: Are you lifting the marketplace’s ecosystem, or just treading water within it?

Risks, Rewards, and Lessons for Innovators

What does this mean for the SaaS industry’s future? For one, marketplaces aren’t just another sales channel, but a center of gravity, expected to power 70% of enterprise SaaS transactions within a few years. This reality creates both risks and opportunities.

The risks: Vendors who fail to adapt to platform-centric loyalty may see their customer touchpoints diminished, unable to compete for mindshare. Customer intimacy, once a SaaS selling superpower, may be mediated, commodified, or lost altogether if platform rules become too rigid or fees too steep.

The opportunities: Vendors who master marketplace dynamics can scale faster, access qualified buyers, and benefit from network effects, if they design offerings and rewards that play well within the platform’s logic, rather than fighting to perpetuate an old paradigm.

For software buyers, the lesson is to be thoughtful about the platforms they embrace; marketplace loyalty is sticky, and switching costs can mount as more tools are bundled together. For partners, deepening expertise even further within chosen platforms, rather than maintaining a sprawling portfolio, may unlock greater economic value and strategic relevance.

Ultimately, SaaS loyalty is evolving from a series of one-to-one, monolithic commitments, to a fluid and dynamic dance within the orchestrated symphony of the marketplace. Vendors, users, and partners are all learning new choreography, and those quickest to adapt may just shape the future of software itself.

Tags

#SaaS#marketplaces#platform loyalty#vendor relationships#software industry#customer retention#network effects