What are Vertical SaaS Companies? (+7 Examples)

Software as a service has two major domains through which it becomes easier for us to comprehend and categorize what we offer via our services. These two major domains are called vertical and horizontal SaaS. 

While horizontal SaaS primarily works as a service in a specific department, vertical SaaS, on the other hand, deals with the whole industry.

With this article today, we'll uncover some of the key benefits of running a vertical software company and provide examples of vertical companies for better understanding. Before getting into it, let's brush up on the basics. 

What is vertical SaaS?

What is a Vertical SaaS?

Vertical SaaS, at its core, is a distribution model that's primarily created to speak to the requirements of a certain industry, company, or business. Vertical software as a service is where you aim for specific industries, trades, or businesses. It can be defined as a detailed, all-rounded solution for a particular business area.

What Vertical SaaS is actually interested in is creating to-the-point software answers and solutions to specific needs. 

What does this mean?

For instance, certain service models such as food services in restaurant industry, real estate, healthcare, or financial services would naturally require a product that manages to meet their needs, such as creating a practical scheduler for each patient, or a food menu for creation and distribution software for hotels. This is exactly where a vertical SaaS company steps in and focuses on this particular need and comes up with a relevant product to meet that exact need. 

Moreover, it's now safe to say that the verticalization of SaaS businesses is becoming more common than ever. There may be numerous reasons for this popularity, and one of them would definitely be the problem-solving nature of the accomplishment of focusing solely on a particular industry since this approach simply allows you to rely more on relevancy, accuracy, and creativity as a result. 

In that sense, Vertical SaaS solutions are proven to be efficient and are constantly growing in popularity since more and more industries are beginning to appreciate them. 

Benefits of running a vertical software company

Given the fact that more and more businesses related to the B2B sector are benefitting from vertical SaaS each day, it's essential that we talk about the reasons for this dramatic change for the better.

Here are the top benefits of running a vertical software company listed below.

• Reduction in customer acquisition cost

Since Vertical SaaS is all about being industry-oriented, it becomes extremely easier for the company to clearly perceive the particular industry's requirements and focus on them as a result.

In that sense, a more narrow and accurate lead pool enables you to avoid wasting time chasing potential clients here and there and improve your marketing efforts. It also, at some point, triggers the beauty of word-of-mouth marketing -since it works better in niche industries- it becomes highly likely for you to experience an increase in personal referrals and a decrease in customer acquisition costs. 

• Improved integrations

Considering the way Vertical SaaS works, it's safe to say that the company that's involved has full control to create and practice native integrations into their product. When it comes to this, Vertical SaaS is capable of providing them with industry-specific integrations. What's even better is that these integrations do not have to stay the same; they can change and become newer based on the addressable market, the target audience, and its needs.

• Better investment

Since Vertical SaaS focuses on a relatively smaller group of a particular market, companies involved generally conduct detailed research and numerous surveys before their creation and development process starts. This approach creates ease when locating and targeting smaller business processes and fractions and ways to solve them. 

This kind of a clear focus on the market enables more conversions with fewer resources, thus creating an opportunity to invest more wisely and creating space for revenue growth.

• An ability to compete harder

Vertical SaaS is, let's say, quite new, and that's exactly why very few industries have realized or fully understood the solutions it offers. Contrary to horizontal SaaS -a far more mature market- getting started with Vertical SaaS right in time will definitely give you a head start over your competitors. 

7 Vertical SaaS Businesses to Set an Example

1- ClearCare

Based in the United States, ClearCare is a health and care solution provider. The vertical solution they provide mainly consists of electronic health care records. These records are usually e-prescriptions, and e-charts, combined with the ease and swiftness of 100% automatic labs. 

The app instantly introduces you to a patient portal where you can see and track your account and all of the patient's personal information - providing a great and quick software solution.

2- Textura

Textura is an architectural contract and payment management service. It provides great help for delivering projects that go live right on time and keep sticking to a safe budget if necessary. The vertical solution it offers is used by an engineering and construction company as a consumption model. And until now, it has managed to assist 85,000 contractors and subcontractors. 

3- Clio

Clio is a legal service management tool that takes cares of data management, all kinds of customer documents, customer services, and time-tracking for your firm.

As a lawyer, life is complicated enough. So get on board with Clio and see how easy it can make things for you! Legal practitioners all around the globe love Clio and how it enables them to buy out convenience thanks to its intelligent system. 

4- Procore

Procore is all about project management solutions. What's special about it is that it can be accessed from anywhere and anytime. Their services have been focusing primarily on the experts dealing with construction units. The app allows them to edit and design their plans, sheets, and drawings.

5- Madwire®

Madwire® is a marketing and business solutions company. It assists small businesses in their growth journeys, marketing strategies, and transformation into bigger companies. Founded in 2009, this software uses a single dashboard - the Marketing 360- to enable entrepreneurs to manage their companies. 

6- Applied Epic

Applied Epic is a cloud management system that functions in the insurance industry. With this software, users are able to easily manage sales, revenue, and property in a personalized dashboard.

The software also comes with a wide range of well-designed features such as data control, integrated group texting, customer service deliveries, and revenue motorization - making it one of the best insurance companies out there.

7- Quizlet

Quizlet is a web-based mobile app that lets students study science and AI. The learning tools it provides consist of interactive games that make learning both easy and fun. Moreover, it offers numerous tests and pop-up game-like quizzes to train students. 

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