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4 Ways a Vertical SaaS Technique Can Dominate a Niche Market in 2022

4 Ways a Vertical SaaS Technique Can Dominate a Niche Market in 2022

“Jack of all trades and a master of none, but often better than a master of one.”

It’s an old adage. It says that it often bodes well to be good at several things even if you’re not an expert at any of them than to be an expert at one thing and bad at everything else.

You must be wondering ‘what does it have to do with SaaS companies?’ Answer? A lot. Today we’re going to look at a key reason a SaaS company dominates a niche market – Vertical SaaS.

A lot of SaaS companies around the globe offer a multitude of services, covering various industries. For example, MS Office and Slack. These are examples of horizontal SaaS. However, in recent years, there has been an increase of vertical SaaS companies that create solutions for niche industries like banking software, real estate programs, etc.

Vertical SaaS is a group of software solutions that cater to the needs of a particular niche industry. Some of its prominent examples are:

  • Cox Automotive, a provider of automotive solutions, paid $4 billion for Dealertrack, an on-demand software provider for the industry.
  • Health Assurance Plan, a dental software that provides comprehensive solutions to dentists as well as patients right from connecting them to post-treatment care.
  • Veeva, a life science company that provides cloud-based CRM and content management systems, grew from zero to $2.4 billion in less than six years. 

These examples and more, strongly suggest that vertical SaaS is the future and a real competitor to horizontal SaaS markets.

Building a vertical SaaS is one of the best answers to how to scale your SaaS company. But even vertical SaaS companies need a proper plan of action when it comes to growth.

Here are some key pointers to help you scale your vertical SaaS product:

Select the Right Vertical

When it comes to digital marketing for SaaS companies, a one-size-fits-all approach is not going to cut it because of the specialized nature of a vertical SaaS company. Therefore, it is paramount that you pick a vertical that has a large enough potential for growth, and not nearing market saturation.

Also keep in mind your level of expertise in a particular area, as niche markets require extensive and in-depth knowledge to provide comprehensive solutions for the said market. Aside from that, conducting market research is just as important. Follow the selection of your SaaS vertical by studying at least 10 companies (both vertical and horizontal) and learning about their products and offerings. This will allow you to distinguish your product from theirs and improve your odds of capturing a niche.

Stick to Your Guns

It may be tempting to move to a different vertical because they have similar issues or you want to expand your consumer base. However, you should refrain from doing so. Each additional layer requires you to tailor your product to a certain amount, limiting your capacity to provide answers to specific vertical challenges.

Sticking to one vertical also allows you to collect, aggregate, and store industry-specific analytics. The data can subsequently be monetized through value-added services such as benchmarking or marketing reports.

Speak the Language of Your Audience

Research is imperative. If you want to carve out a niche in a market, you will need to speak to the customers and treat them the way they want and expect you to. You must speak the language of the prospects and offer solutions that fully address the industry’s problems. This improves your chances of gaining and keeping customers.

Get industry insiders on your side to provide nuance and help improve your services. An added incentive is that it gives you the tools to quickly understand and adapt to market fluctuations.

Aggressive Promotion is Key

It doesn’t matter if you’re selling the elixir of life, but if no one knows that it gives you immortality, they will not buy it. You can have the best product or service in a market, but you need people to realize exactly just how much it would make their lives easier and solve problems. That’s where digital marketing for SaaS companies comes in.

Promoting is especially important if you are new to the market and your target audience is more inclined to go with established industry names. You need to grab their attention and build credibility if you want to stand a chance.

Final Words

There is no question that while it may be harder to break the status quo and establish yourself in a vertical market, the rewards are arguably more than worth it.

Andreessen Horowitz’S General Partner Kristina Shen talks about the scope of fintech companies leveraging vertical SaaS techniques to grow.

Because more and more niche-specific software is being produced these days to satisfy the industry’s distinct needs, the future of SaaS is unquestionably going vertical.

Are you looking to dip your toes into the vertical SaaS market? Follow these above tips to get you started and connect with us at Alter Marketing Solutions, where a team of proficient digital marketers will assist you in taking your company to the next level. Send an email to [email protected] or give us a call at +91 99864 60086.

DEBUNKED: 6 Marketing Myths About SaaS Companies That You Must Let Go

DEBUNKED: 6 Marketing Myths About SaaS Companies That You Must Let Go

Cold outreach and a handful of ads are a thing of the past. SaaS marketing has now grown into an industry of its own over the years, with the competition among companies at an all-time high. Delivering a lasting impression on customers and deriving sustainable results are challenges faced by every company especially with various myths put in place to hold you back.

Here are some digital marketing myths we’ve debunked so you don’t have to:

  1. Your Product Needs to be Perfect

The thirst for perfection is one seen everywhere in the SaaS industry, but achieving it is a hard feat. A finished product may take months, even years to achieve, but sales take equally as long. If you’re a salesperson or the owner yourself looking to get a headstart in a sea of customers, starting marketing from the day you sign up is the way to go. Sell your ideals, your mission, your vision while you work on your product and witness the multitude of customers ready to subscribe not only to your product but to your belief.

  1. Marketing is Fast

SaaS marketing is a vast playing field, from generating the amount of content required to the frequency of changes made to your website; the data is vast and thus requires significant time and energy to go through. Companies spend a large portion of their revenue on sales and marketing, getting started with upfront investment. However, transforming that investment into a marketing model that works is no easy feat and requires endless hours of continuous refinement and changes. Thus, if you want a marketing model that’s sure to work, make sure to have patience handy.

  1. About Increasing Conversions

Many consider conversions the absolute goal when it comes to SaaS marketing however your true goal should always be revenue. There may still be problems from getting conversions and then transforming them into a viable revenue stream. Thus, you should look at all aspects of the cycle from the referring page being optimized to the next step after a conversion occurs. Your goal at the end of the day should be building a system that generates revenue rather than one that increases conversions.

  1. Data Dominates. Or Does it?

Again, a difference in goals. We see a lot of people strive towards the acquisition of as much data as possible without considering why they’re doing it. Your objective when it comes to data should always be insights. Thus getting good quality data that could then be utilized to its ideal capabilities will always be better than acquiring a large chunk of data with minimal relevant insights. Understanding how and what metrics to use can give your company the headstart it needs. Gathering qualitative data through surveys and customer relationships is also a great way of gathering data that matters. 

  1. The Truth About Marketing Channels

Facebook ads, Google Adwords, content marketing, and the multiple other channels available are important parts of the marketing puzzle. One should try them all out and see which ones are a good fit for your SaaS company and optimize your strategy accordingly. If you’ve tried these channels in the past, one thing to remember is to not discard them immediately if they don’t work out for you. The problem almost all the time isn’t the marketing channel itself but your implementation. All in all, various channels provide awesome opportunities for your company to grow, make sure to use them effectively in order to see viable revenue. 

  1. Content is King

Along the same lines of marketing channels, content marketing is something we see almost every SaaS company using. However, relying on only content marketing and expecting large amounts of return is a utopian ideal, to say the least.  The amount of content being created and optimized for the general public is at an all-time high, making it more exigent than ever to create unique content. Your goal should always be to create content that stands out and then distribute it effectively rather than the amount of content you’re producing; only a combination of both can help you reap the rewards of your hard work.
Like most things in life, digital marketing is not a perfect science. Every company out there today probably needs an effective marketing strategy to reach its goals. At Alter Marketing Solutions, we have a marketing staff of highly skilled number-crunchers to devise the most effective, individualized marketing plans for your business. Send an email to [email protected] or give us a call at +91 99864 60086.