Pros and Cons of Horizontal SaaS

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Even if you can quickly gain maximum market share, your business may have difficulty scaling up, depending on how niche your target is. After all, the number of viable customers is always limited. Note that if you conduct a thorough market research before launching your business, you can determine whether there are enough potential customers in a particular niche.


Because your customer base is all in the same industry, it can be difficult for your company name to be recognized outside of that vertical. User-generated content and word-of-mouth references may all be within that realm, so it may take longer for the public to become familiar with your brand.



What is Horizontal SaaS?

Horizontal SaaS is a distribution model that came before vertical SaaS, where cloud-based services are designed for a wide range of users, regardless of their industry. Horizontal SaaS tools solve common problems in bulgaria telegram number database business and include CRM, HR management tools, attendance tracking, marketing automation, website builders, and communication tools.


Horizontal SaaS Example


Slack - A web-based application for smooth communication between online teams, used in almost all fields



Salesforce - CRM (customer relationship management) tool that makes it easier to track sales progress, follow up with customers, and analyze sales performance


Quickbooks - accounting software for small businesses that makes it easier to issue quotes and invoices and can be used in most all industries




Large pool of potential customers

In a horizontal SaaS model, your service is designed for a variety of users and can be sold to customers from a wider group. This means you can expand your marketing reach, rather than tailoring all content and advertising to a niche market. It can be easier to reach new viable customers this way, whereas sometimes niche targets are harder to get.


Easy to increase brand awareness

Since horizontal SaaS applications are used in many different areas, customers can become familiar with the brand faster, making it easier to sell to new users. This means you can gain widespread brand recognition and start generating revenue faster.


Many established competitors

Since the horizontal approach has been around longer and is used by most tech companies, you will be facing a handful of competitors who have already become your service providers. You won’t have any unique positioning to set you apart at the beginning, which can make it difficult to get to a place where you can truly compete with the leading brands.