Building a successful vertical strategy means focusing on the ideal industries and knowing when and how to invest for long-term impact.
For Jared Barol, GTM leader and advisor, verticalization during his time at Salesforce took a structured approach that required developing a maturity model to guide investment decisions across different industry segments.
“By categorizing sectors into nascent, maturing, and scaling stages, we could strategically allocate resources, identify key market signals, and ensure a sustainable path to growth,” Jared said.
He further explained that this method wasn’t just theoretical; it had real-world applications across Salesforce’s diverse industry teams, many of which operated like startups within the enterprise. The key takeaway? A well-executed vertical strategy doesn’t just drive revenue—it builds ecosystems, fosters collaboration, and positions a company for scalable, sustainable success.
Jared shared more about the effect of well-executed verticalization strategies with Dr. Amy Cook and the Go To Market podcast. During the interview, Jared explains why verticalization isn’t a smart move for every company, why collaboration and a self-sustaining industry ecosystem are hopeful signs for vertical growth, and why “glocal” should be the next buzzword driving your RevOps GTM strategies.
Amy: Can You Share More about Your Team’s Strategies at Salesforce?
Jared: Creating a more strategic approach to vertical investment was one of the main projects that my team and our content teams worked on at Salesforce. To determine the appropriate amount of investment required at each stage, we developed a maturity model that classified sectors into three categories: nascent, maturing, and scaling. This framework helped us determine when and how to move an industry segment forward—what signals to watch for, what actions to take in response, and how to ensure a thoughtful, data-driven approach to verticalization.
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What made this work particularly interesting was its broad applicability. Even within a massive organization like Salesforce—85,000 employees strong at the time—our approach had to be adaptable at a micro level. Many industries are supported by just a few product managers, a small team of SEs, or a handful of sellers.
While Salesforce, as a whole, functions at scale, the reality is that each industry team operates more like a startup within the enterprise, making a structured, scalable approach to vertical growth essential.
Amy: Based on your past experiences, should every company do a vertical marketing strategy? What’s your perspective on that?
Jared: Not every company should pursue a vertical marketing strategy—at least not all at once. The key is knowing when the investment makes sense. Take healthcare, for example. At Salesforce, healthcare and financial services were our most mature verticals, having reached significant revenue volume and strong market traction. These industries had robust partner ecosystems that we began investing in at the maturing stage.
By the time they scaled, those ecosystems could grow independently, thanks to the enablement materials and partnerships we had built. But getting there wasn’t an overnight process—it required a strategic, phased approach. Trying to scale too quickly can be incredibly costly and yield uncertain returns.
The smarter approach is to follow customer pull. When launching a generalist product, you might suspect it has applications in healthcare or insurance, but instead of forcing a vertical strategy, you look for organic demand.
- Are customers in that industry naturally gravitating toward your product?
- Are they referring others, creating a network effect?
These conditions are ideal for vertical SaaS. In many industries, businesses vie for clients, but they nonetheless work together to exchange best practices and insights. Customers become your best salesperson as a result of this dynamic, which significantly lowers marketing and sales expenses. By mid-2023, sales and marketing accounted for over 248% of net new ARR for general SaaS companies and nearly 170% for vertical SaaS companies. The significant difference shows why a well-timed vertical strategy can have a transformative effect.
Amy: What is the Impact of a Collaborative, Self-sustaining Industry Ecosystem?
Jared: An industry ecosystem that is self-sustaining and collaborative is one of the best markers of a successful vertical investment. Consider HIMSS, the annual Las Vegas convention for the healthcare industry. It’s one of the most transparent and cooperative gatherings where businesses freely talk about their products, consumer tactics, and methods to make the industry better overall.
When you see this level of engagement and knowledge sharing in a sector you’re targeting, it’s a strong signal that the industry is both investable and scalable. It will grow with or without you, meaning there’s an established demand and clear gaps to fill.
Read More: Why Seller Experience and Ops Skills Win in Vertical Markets
Compare that to the media sector, which is unquestionably expanding quickly and offers excellent prospects, but it functions completely differently. Selling into the media is more difficult since it is typically more competitive and fragmented. Businesses frequently struggle with lengthier sales cycles and greater go-to-market costs when there isn’t a robust, collaborative ecosystem. This distinction emphasizes why verticalization involves more than just choosing a developing business; it involves locating fields where network effects, teamwork, and cooperative problem-solving provide the most favorable circumstances for long-term growth.
Amy: What is Glocal?
Jared: A successful verticalization strategy often follows the same principles as entering new international markets—balancing global consistency with localized adaptation. The ” glocal ” concept (a blend of global and local) suggests that roughly 70% of a product’s sales and marketing efforts should remain globally consistent. In comparison, 30% should be adapted for local market needs.
This rule varies by industry; for example, healthcare in the UK operates under a different payer model, requiring deeper customization. However, in sectors like restaurant technology, early differentiation might focus primarily on surface-level changes—such as localized language, tailored use cases, and adjusted packaging—rather than fundamental shifts to the product itself.
The same approach applies to verticalization within industries. Instead of overhauling core product architecture, companies can start by making incremental adaptations—adjusting terminology, introducing custom objects, or refining user interfaces to better-fit industry needs.
The underlying system remains the same in many cases, with only minor adjustments, such as hiding irrelevant standard objects while maintaining backend functionality. The key is to test the market with industry-specific landing pages, targeted ABM campaigns, and bundled solutions to gauge demand.
Once customer pull is evident and companies actively purchase these tailored solutions, the next step is refining the offering through multiple iterations. As patterns emerge, leadership must evaluate whether further investment is warranted—considering factors like additional product development, marketing expansion, and potential (but not always necessary) industry-specific sales teams.
At this stage, moving a vertical from “nascent” to “maturing” requires a strategic decision matrix to ensure that resources are allocated effectively. Verticalization isn’t about rushing into new markets but smart, measured expansion based on real demand and sustainable growth potential.
“Relationships matter just as much as the product itself.”
When entering a new vertical, relationships matter just as much as the product itself. If you’re investing heavily in developing a solution for a specific industry, breaking in from scratch can be a long and costly process. Instead of starting cold, bringing in experienced sellers with deep industry ties can accelerate success. For example, a seller who has spent 10–15 years at HIMSS building relationships with providers and payers has an established network and credibility that would take years to develop organically.
By hiring industry-seasoned sales professionals, companies can shorten sales cycles, gain valuable market insights, and establish trust with potential customers more quickly. These sellers understand the industry’s nuances, the key decision-makers, and how to navigate complex sales processes. Verticalization isn’t just about having the right product—it’s about ensuring the right people are in place to drive adoption and growth efficiently.
Watch the full interview here.
