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In their early days, many software companies find themselves asking which customers to target. That may mean choosing between small businesses and large enterprises; it may mean choosing if and when to focus on specific verticals.
Going vertical is a big decision that is often made accidentally with dire consequences — the product roadmap can be compromised, competitors can gain traction in bigger segments, or, in the worst case, the company is pigeonholed into a market subsegment that isn’t big enough for a good exit.
This is why the sequence of operations is critical when verticalizing. Companies can minimize risks by trying this sequential, gradual approach.
1. Confirm the market is sending a signal. Sales success is the best indicator. Track industry verticals in your CRM. Is there a concentration of buyers from a specific vertical in your customer base? Where is your sales cycle repeatedly the shortest? Where are your biggest average deals? Are reps focusing on particular industries? What’s happening in that market to create outsized demand?
2. Create vertical content. Before you actually commit resources, create content in that discovery pathway: 71 percent of B2B searches start with a generic query to find a product that solves their problem. The signal of whether or not that content is discovered and viewed will test engagement and repeatability. It also says whether or not your horizontal solution can simply be applied in a more specific…