Do Vertical SaaS Companies Benefit from Higher Sales Efficiency?


tomtunguz.comWhen writing the post Vertical SaaS Startups Require Different Go To Market Than Horizontal SaaS Companies, I realized that there is a perception on my part and perhaps more broadly that vertical SaaS companies enjoy greater sales efficiencies than horizontal SaaS companies.

After all, vertical SaaS companies target a smaller number of potential buyers. The marketing team concentrates their media buys to target this audience, the sales team focuses on a smaller lead list.

Does the data support this notion? The point chart above compares the estimated sales efficiency of 54 publicly traded SaaS companies – 10 vertical in blue and 44 horizontal in red – for two years before IPO and three years after. It’s hard to discern a difference between the two.



photo CC by NEC Corporation of America


Comments are closed.