In 2024, under the banner of 'efficient growth,' vertical software is gaining prominence. Vertical SaaS spent only 22% of its revenue on sales and marketing, while horizontal SaaS spent 41%... Vertical SaaS companies spent $1.76 for every new dollar of ARR, while horizontal companies spent $2.40.
Vertical software offers tailored solutions to specific markets, leading to lower customer acquisition costs, higher expansion sales, and stronger gross retention. Marketing is highly specialized with industry-specific language, terms, and use cases.
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