A Shift in Saas Industries -The Future is Vertical

38% of businesses.

Yes, according to Customer Think stats, that number of businesses systems run completely on SaaS software.

It’s been months running your Saas company; you’ve estimated your budget (the tight budget), researched what the top-performing Saas companies are doing? (maybe 100 times or so) But somewhere, you’re still stuck in a rut.

** Source: BetterCloud

You’re using the same rules and software and experiencing the same results. But times are changing, and so is the saas industry.  That being said, the leading-edge Saas software like Vertical and horizontal Saas are taking the Saas industry by storm.

In this article, let’s dig a little deeper into how Vertical Saas can help you skyrocket your Saas business.

What is Vertical Saas?

** Source: Single grain

Let’s take a look at these stats. Global newswire data indicates that the Software as a Service (SaaS) market is going to hit USD 716.52 Billion by 2028.

Given that, this billion-dollar industry does have its advantages. When it comes to vertical Saas, it is an amalgamation of Saas solutions and distinctive products for a specific market. Big giants like Microsoft 365, Quickbooks and Slack are ready to give it a whirl — they can’t resist it!

There is Saas product software that is built as an industry initiative. This category of SaaS products includes solutions that suit a super-niched market.

Well, the model for Vertical SaaS takes a multi-faceted approach. It relies on firms that are built to tackle a single problem and handle other business challenges.

For example, financial and health care companies are traditionally vertical Saas companies. Since their model isn’t catered to everyone, also they don’t have a wide range of products. That’s the reason; it satisfies the needs and requirements of limited people.

Here are a few examples of vertical Saas software:

• SAP Business ByDesign
• Veeva (cloud platform for life science and pharma)
• BioIQ (MedTech) Health Assurance Plan (dental software)
• Guidewire (insurance)
• Banking, heavy manufacturing, and government.

In simple words, there are vertical-specific platforms like Litify (uniquely customized for law firms). This shift from inclusive, one-size-fits-all platforms to vertical-specific solutions is helping B2B industries to develop and grow.

The Beauty of Vertical Saas

Now that you’re all aware of what is vertical Saas? Hang in there. It’s time to understand how vertical Saas can help you grow your Saas company.

Here are a few of the advantages of Vertical Saas you can’t afford to miss:

• Confined Products: You don’t have to make any extra effort since vertical Saas focuses more on making on-time deliveries and targeting a niche market with specific software needs. This saves your time but also reduces operational costs.
• Makes sales a Lot simpler: One of the biggest challenges a company can face is in their sales process. With vertical Saas, the processes are made accessible. Since most of the people are working from home these days, they can easily access any process from their homes, and be more productive. This can improve sales rates. It has easy customization and provides simple updates on future campaigns.
• Better R.O.I:  Scaling is an important factor that constructs every company. You don’t have to worry about any infrastructure or revenue lost since Saas is profitable due to low customer churn. You need not worry about high-end computers or expensive technologies, all you need is additional Saas-based licenses for increasing work.
• Easier upsell: For a long-term running company, you do need more products to sell and raise your upsell. This means you do need to increase your product velocity. A vertical Saas software can provide a better roadmap for products and also control other attributes at the same time.

The best part is it delivers products on time, with high quality and reliability for customers.

• Less competition:  As mentioned earlier the vertical Saas software targets a highly specific niche audience. It works best for traditional industries like banking and pharma. This means there is less competition and more sales. Its niche-specific software provides leverage to companies.

Granted that they can serve more customers in less time without any fear of losing data, money or resources.

The Growing Trend of Vertical SaaS

Source: Twitter

Since it's no surprise that vertical Saas allows companies to be more productive. Even stats say that  80% of businesses plan to make all their systems SaaS by 2025.

With these whopping numbers, some ongoing trends can change the wave of the vertical Saas industry. Let’s understand how these trends can allow companies to work efficiently and evolve as a business.

So here are a few top trends for vertical Saas:

• Automation will be the key: Vertical Saas is automating almost all its processes so that it can maintain high-quality services.
• Customer intelligence: Observe customers from a hand distance and analyze all their data and insights for future campaigns.
• Emerging niches: As the demand grows so does the vertical Saas niche products market. It amplifies the new niche products usage. For example, providing solutions for a childcare management app. These niche-specific solutions can raise awareness and also sales.
• Additional services: Vertical Saas can go above and beyond to make customers happy. That's the reason the new software will be more focused on offering services like advisory, management, cloud consultation, new products migration, and sales.

Conclusion

To conclude, Vertical SaaS solutions handle industry-specific problems that often go unnoticed.

To be precise, Saas organization operates in over 100 different countries.

Companies can now enjoy the benefits of so many integrated services. From payment processing to cloud-based technology, companies can experiment and create strong cross-selling opportunities.