This is the second installment of a three-part series on Vertical SaaS. Read part one here.
In the first part of this series, we wrote about how AI enables vertical SaaS companies to take on tasks previously deemed too complex for software. Specifically, we noted that wWith AI, customers of VSaaS can now dramatically reduce internal and external labor spend on sales, marketing, customer service, operations, and finance. For the VSaaS company, this can increase revenue per customer by up to 10x!
In this post, we will look at how AI will open new markets previously deemed too “small” to support a large vertical SaaS company. By increasing LTV (through replacing labor with software) and reducing CAC (through leveraging AI-driven sales and marketing tools), AI has now “opened up” a plethora of new markets. Namely, the long tail of niche industries you were likely not thinking of before this post: chiropractors, dry-cleaning and laundry services, veterinary services, and more.
