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I’m building a vertical expansion strategy.
Some things to know.
First, our company is very much verticalized with SMEs within each vertical.
Second, there is a lot of service addressable market to capture in these verticals, specifically ones outside of our core vertical.
So for this strategy, I’m looking to figure out which one has the most potential. In terms of revenue potential and stickiness as a customer.
This is the exact process I’m taking to narrow in on the vertical.
Analyze our current customers by vertical: Where do we have the most customers and revenue coming from. Which is the most sophisticated vertical by product usage.
Break it down by sub-vertical: This is so critical, because most verticals have sub-verticals that essentially act as its own vertical. Once I’ve narrowed in on one vertical, I’ll break it down further just like in step one to see which sub-vertical has the most customers and revenue as well as sophistication.
Serviceable addressable market: After I’ve narrowed in on the ideal sub-vertical, I’ll analyze our prospect accounts within that same sub-vertical. How many prospect accounts do we have, what is their revenue potential, do they have the same qualities as our customers?
Content audit: By this point I’ve selected the target sub-vertical and will go through to see what type of content we have that’s specific to this sub-vertical. This may look like case studies most importantly, but how-to guides and webinars in addition.
Messaging and terminology: Not all sub-verticals speak the same language. This is so important to remember. At this time I’ll work with our SMEs to gather as much information as I can about the sub-vertical including specific terminology they use that may differ than our core vertical.
And that’s it!
Kidding, not really. Once all of that is finalized is then when I put together the entire strategy, including channels, tactics and KPIs.
It’s this formula I used when I built Clari’s vertical expansion strategy from scratch and turned into $30m+ in pipeline. And how I’m going to do the same at Movable Ink.
Get a full breakdown of this strategy in my new guide: Expanding Into New Verticals with an Account-Based GTM Strategy.
![]() | Author: Tyler Pleiss |