What Are Third-Party Integrations

Is your SaaS business ready for the future? In a world where the SaaS industry is growing rapidly, third-party integrations have become a necessity. Today, there are approximately 25,000 SaaS companies globally, with more emerging daily. These businesses are under increasing pressure to offer integrations as part of their service. Why? Because the average company uses around 125 SaaS apps, and customers expect seamless functionality between them.

Third-party integrations have become a vital component in maintaining customer satisfaction, enabling various apps to work together efficiently. Whether you’re connecting legacy systems with new SaaS apps or building integrations from scratch, third-party platforms can help streamline the process.

What Are Third-Party Integrations?

Third-party integrations refer to connections between two or more applications using an external platform to enable essential functionality. Enterprise iPaaS, embedded iPaaS, and unified APIs are common platforms for managing these integrations.

While some may define third-party integrations differently, the most helpful definition focuses on the platform that facilitates the connection. Instead of thinking of the third-party as the app itself, we refer to the platform that supports integration. This distinction is crucial for understanding how SaaS companies can scale their operations by relying on third-party platforms rather than building integrations from scratch.

Without third-party integrations, many businesses would be left developing custom solutions for every unique connection between apps. In contrast, a third-party platform enables faster, more scalable integration solutions. This is especially true when dealing with legacy systems that still need to connect with modern SaaS apps.

Third-Party Integrations vs Native Integrations

Native integrations are those that appear seamlessly as part of an app’s user experience, while third-party integrations rely on external platforms. Although third-party integrations might seem different, many SaaS users cannot distinguish between the two when well-implemented.

Some companies define native integrations as those built entirely in-house by their development teams. However, most users don’t care about the underlying technology; they just want integrations that work. As long as an integration performs well, customers view it as part of the native experience, even if it uses a third-party platform.

Still, there are cases where third-party integrations do not blend as seamlessly. When the interface or user experience feels disconnected, users may notice that the integration is separate from the app. On the other hand, true native integrations are built entirely into the software, with no visible separation between the app and the integration.

In the end, what matters most to customers is the functionality, not whether it was built in-house or with third-party tools. The goal for SaaS companies should always be providing smooth, efficient integrations, regardless of how they are built.

Examples of Third-Party Integrations in Action

There are countless use cases for third-party integrations, ranging from individual users automating workflows to large enterprises managing data across departments. Below are a few real-world examples:

Individual User Scenario: A freelancer might use an accounting system for special projects, but they also need to track project costs. By using a tool like Zapier, they can automate the integration between their accounting software and project management app.
Internal ERP Example: A company’s enterprise resource planning (ERP) system requires data from various departments like accounting, sales, and support. Enterprise iPaaS platforms allow businesses to create internal third-party integrations between their ERP and dozens of other apps.
SaaS Manufacturing Maintenance: A SaaS company providing manufacturing maintenance scheduling might need to integrate its app with several different ERP systems used by its customers. By using a unified API, they can simplify this process, handling multiple integrations with ease.
Custom Accounting Systems: A SaaS app that handles fixed asset depreciation might need to integrate with a variety of custom-built accounting systems. In this case, an embedded iPaaS offers the flexibility needed to create unique third-party integrations for each client.

These examples illustrate how third-party integrations can be used in a variety of contexts, from simple automations to complex, enterprise-wide solutions.

Types of Third-Party Integration Platforms

There are several types of third-party integration platforms that businesses can use to connect various apps and systems. Each platform type offers distinct capabilities, and choosing the right one depends on factors like the scale of your business, the complexity of the integration, and the level of customization required. Let’s take a closer look at the four main types of third-party platforms: workflow automation, enterprise iPaaS, unified APIs, and embedded iPaaS.

Workflow Automation

Workflow automation platforms, such as Zapier, are commonly used by individual users or small teams. These platforms are designed to simplify the process of integrating everyday apps without needing any technical expertise. They are especially useful for connecting commonly used software, like Google Sheets, Slack, or Trello, allowing users to automate repetitive tasks quickly.

One of the main advantages of workflow automation platforms is their simplicity. Users can typically set up an integration in just a few clicks, making these tools highly accessible. Whether it’s automating notifications, data syncing, or task management, workflow automation is a great option for small-scale integrations.

Ease of Use: These platforms are designed to be simple and user-friendly, allowing even non-technical users to set up integrations.
Quick Setup: Most workflow automation tools offer templates or pre-built workflows, making it fast and easy to connect apps.
Best for Small-Scale Integrations: Workflow automation platforms excel at handling small, individual integrations rather than large-scale or enterprise-level systems.

Despite their ease of use, workflow automation tools have limitations. They are best suited for simple tasks and may not be ideal for large organizations that require complex, multi-layered integrations across different departments. For more extensive needs, businesses typically turn to other types of third-party platforms.

Enterprise iPaaS

Enterprise Integration Platform as a Service (iPaaS) is specifically designed for larger companies that need to manage numerous internal third-party integrations. Unlike workflow automation tools, enterprise iPaaS platforms provide a more robust set of features aimed at handling complex integrations across a company’s entire ecosystem.

An enterprise iPaaS allows businesses to integrate multiple apps, systems, and databases without the need to code each integration from scratch. The platform includes API connectors for a wide range of SaaS apps, making it easier for developers and non-developers alike to set up integrations. This is particularly useful when dealing with large volumes of data or managing integrations across different business units like accounting, sales, and customer service.

Ideal for Internal Integrations: Enterprise iPaaS platforms are best suited for internal company integrations that link various systems, such as ERPs and CRMs.
Standard API Connectors: These platforms come with built-in connectors to many popular SaaS apps, streamlining the integration process.
Efficient for Enterprise-Wide Use: Enterprise iPaaS platforms can handle the heavy lifting required to connect hundreds of apps across a large organization.

However, integrations built using enterprise iPaaS might not always appear seamless to the end user. Often, these connections are visibly separate from the apps they connect, making them less suitable for customer-facing integrations. While enterprise iPaaS is excellent for internal use, SaaS companies that need external integrations may prefer a different solution.

Unified API

A unified API is a third-party integration platform that consolidates access to multiple APIs within a specific software category. By using a single set of rules, a unified API simplifies the process of connecting to several systems at once, making it an excellent choice for SaaS apps that need to integrate with many similar services, such as human resources management systems (HRMS) or accounting software.

Unified APIs eliminate the need to manage multiple API connections, which can be cumbersome and time-consuming. Instead, developers can connect to one API that abstracts the complexity of multiple systems. This approach can significantly speed up the integration process, especially when dealing with a large number of third-party apps.

Access Multiple APIs in One: A unified API gives you access to multiple systems within a single API, reducing the complexity of managing different connections.
Simplifies the Integration Process: By providing a common framework for integration, unified APIs streamline the process, making it easier to connect your app to various platforms.
Best for SaaS Apps with Multiple Services: Unified APIs are ideal for SaaS apps that need to integrate with several similar services, such as various ERP or CRM systems.

While unified APIs simplify integration development, they may not always offer the level of customization that some SaaS companies require. Additionally, the integrations may not blend seamlessly into the app, which could affect the user experience. For companies that need highly customizable, branded integrations, embedded iPaaS may be a better fit.

Embedded iPaaS

Embedded iPaaS platforms are designed to provide SaaS companies with the flexibility and customization they need to create customer-facing integrations. Unlike other platforms, embedded iPaaS offers low-code tools that allow companies to build and manage third-party integrations directly within their apps. This platform is particularly useful for SaaS businesses that need to offer seamless integrations to their customers, all while maintaining control over the branding and user interface (UI).

One of the key advantages of embedded iPaaS is scalability. As your customer base grows, so too can the number of third-party integrations you offer. The platform also allows SaaS companies to create a custom integration marketplace, providing users with the ability to select the integrations that meet their specific needs. Additionally, embedded iPaaS supports both low-code and traditional coding options, giving developers the flexibility to create more advanced integrations when necessary.

Low-Code Design Tools: Embedded iPaaS platforms come with low-code integration designers, making it easier for SaaS companies to build integrations without needing extensive development resources.
Scalability for Customer-Facing Integrations: These platforms can easily scale as your customer base grows, ensuring that your third-party integrations remain efficient and accessible.
Custom Branding and UI: SaaS companies can fully customize the appearance of their third-party integrations, aligning them with their app’s branding and ensuring a seamless user experience.

In addition to providing flexibility and scalability, embedded iPaaS also offers the benefit of enhanced security and performance. The platform is designed to handle the complexities of large-scale integrations while ensuring that they run smoothly and securely. For SaaS companies looking to offer a polished, customizable integration experience, embedded iPaaS is the ideal solution.

Benefits of Third-Party Integrations

Using third-party integrations can significantly benefit both SaaS companies and their customers. Whether you’re using an embedded iPaaS or a workflow automation tool, the right integration platform can save time and enhance the user experience.

Save Developer Time: With low-code integration designers and built-in components, third-party integration platforms save significant development time. SaaS teams report up to 80% reduction in dev time after adopting embedded iPaaS solutions.
Increase Sales Velocity: Third-party integrations allow you to meet customer demands quickly, increasing your win rate. Instead of spending months on integrations, teams can deliver them within weeks, speeding up the sales process.
Enhance User Experience: Third-party integrations provide a seamless experience for users. With embedded iPaaS, customers can configure and manage integrations themselves, reducing reliance on support teams.
Improve Customer Support: By reducing infrastructure issues and offering self-service options for integrations, SaaS companies can improve their overall customer service experience.

How Third-Party Integrations Enhance Customer Experience

Third-party integrations have become essential for SaaS companies, offering customers a seamless and efficient way to connect the tools and apps they rely on. When third-party integrations are well-executed, they significantly contribute to a positive customer experience by simplifying workflows, improving productivity, and offering greater flexibility. This not only enhances customer satisfaction but also fosters long-term loyalty and retention. Let’s dive into how third-party integrations elevate the customer experience.

Simplifying Workflows and Reducing Manual Tasks

One of the primary benefits of third-party integrations is their ability to simplify complex workflows. Customers often use multiple apps and tools in their day-to-day operations, which can create inefficiencies if these systems don’t work together seamlessly. Third-party integrations bridge these gaps, allowing customers to automate workflows and reduce the need for manual data entry and task management.

For example, integrating a CRM system with an email marketing tool enables automatic data synchronization between the two platforms. This eliminates the need for customers to manually transfer contact information or campaign results, allowing them to focus on more strategic tasks. These automated workflows not only save time but also reduce the risk of human error, which can occur during manual data handling.

Automated Data Syncing: Seamless integration between apps ensures that data is automatically updated across platforms, reducing time spent on manual entry.
Task Automation: Common tasks like lead assignment, reporting, and invoicing can be automated, freeing up time for more important business activities.
Reduced Complexity: Third-party integrations simplify the process of managing multiple tools, providing a more cohesive experience for users who rely on various platforms to run their businesses.

By simplifying workflows and minimizing manual intervention, SaaS companies can deliver a more efficient and enjoyable user experience, ultimately leading to higher customer satisfaction.

Boosting Efficiency and Productivity

Integrations also play a key role in boosting productivity for end users. When customers can connect their existing tools and apps through third-party platforms, they can achieve more in less time. This is particularly beneficial for businesses with limited resources or small teams that need to maximize their efficiency.

A unified workflow powered by third-party integrations enables users to access all necessary information from a single platform, reducing the need to switch between different apps. This improves focus and reduces distractions, making it easier for customers to accomplish their tasks. Moreover, the ability to automate repetitive tasks, such as data entry or reporting, significantly boosts productivity by allowing employees to focus on high-value activities.

Centralized Information: Users can access all relevant data and tools in one place, streamlining processes and improving focus.
Time Savings: Automating repetitive tasks enables users to complete their work faster and more efficiently.
Improved Collaboration: Integrations allow teams to share data and collaborate seamlessly across different apps and departments.

By improving efficiency and productivity, third-party integrations make it easier for customers to achieve their goals, enhancing their overall experience with the SaaS product.

Increasing Customer Retention with Pre-Built, Configurable Integrations

Offering customers pre-built, configurable third-party integrations can make your SaaS app more appealing, particularly for businesses that rely on specific tools and platforms. Customers appreciate flexibility and ease of use, and when a SaaS product integrates with their existing apps, it becomes a more valuable part of their workflow.

Pre-built integrations allow customers to get started quickly without needing to invest time or resources into building their own connections. Configurable integrations offer the added benefit of customization, enabling users to tailor the integrations to their unique needs. This level of flexibility enhances the customer experience, as it ensures that the SaaS product fits seamlessly into their existing processes.

Quick Setup: Pre-built integrations allow customers to connect their tools with minimal setup time, enabling them to realize value faster.
Customization: Configurable integrations provide the flexibility to adapt connections to meet specific business requirements.
Increased Stickiness: When customers see that your SaaS app integrates smoothly with their existing tools, they are more likely to remain loyal to your product, reducing churn.

By offering pre-built and customizable integrations, SaaS companies can differentiate themselves in the market and provide a superior experience that keeps customers coming back.

Empowering Users with Self-Service Integration Options

Self-service integration options are another critical factor in enhancing the customer experience. Traditionally, users would need to rely on support teams to set up or troubleshoot integrations, leading to delays and frustration. However, third-party integration platforms, such as embedded iPaaS, empower customers to take control of their own integrations.

Self-service options allow users to configure, monitor, and manage their integrations independently, without needing constant support from the SaaS provider. This reduces the burden on customer service teams and allows customers to resolve issues or make changes in real-time. Additionally, customers gain access to detailed integration logs, status updates, and alerting systems, providing full transparency over their integrations.

Independent Management: Customers can configure and manage integrations themselves, reducing reliance on customer support.
Real-Time Adjustments: Users can make changes to their integrations instantly, minimizing downtime and improving responsiveness.
Full Transparency: Detailed logs and status reports give customers insight into their integrations, allowing them to troubleshoot problems more effectively.

By offering self-service integration options, SaaS companies can enhance user satisfaction, as customers have greater control over their experience. This not only improves the user experience but also reduces the workload for support teams, allowing them to focus on more complex issues.

Conclusion

As SaaS companies continue to grow, the need for efficient integrations will only increase. Today, many companies are moving away from hand-coded integrations and adopting third-party platforms to manage their connections.

These platforms save time, reduce costs, and provide scalability that would be impossible with custom-coded solutions. With third-party integrations becoming essential, it’s clear that using the right platform is a critical business decision.