23 July 2020 | OneGTM

Why vertical GTM is on the up

For B2B tech firms, focusing go-to-market activities around key verticals isn’t a new approach, but significant market trends are making it an increasingly important one. Changes in who’s making tech purchasing decisions, how they’re making those decisions and what they’re expecting from vendors are all helping drive a vertical focus. At the same time, B2B marketers are better equipped than ever before to deliver highly-targeted messages. 

In this blog, we explore some of these driving forces behind the rise of vertical marketing approaches. 

It sells to be specific 
The shift in B2B buying away from IT experts to Line of Business (LOB) professionals is clear – >40% of IT spending in European companies now comes from LOB rather than IT1. LOB buyers aren’t interested in the ins and outs of tech. To engage them, vendors need to demonstrate a strong understanding of how tech can be applied to their industry, and what it can do to improve their business.

With more than 68% of their buying journey now spent consuming content prior to contacting a salesperson2, B2B buyers don’t want to read generic content that has no practical implications for their business, and product-led messages no longer cut it. To get buyers to engage, vendors need to talk about the business issues and the market drivers that are impacting them specifically. Already 66% of B2B buyers say that its very important that a solution provider’s website speaks directly to the needs of their industry, and that providers show expertise in their area.3 Verticalisation enables vendors to demonstrate this deeper understanding. 

Partner pressure 
Many B2B technologies companies are investing more in vertically-targeted marketing programmes because it helps them build stronger engagement with their channel partners. Amongst top-ranking MSPs, 78% concentrate to some degree on specific vertical industries, and more than half say vertical market specialisation leads to greater revenue opportunities.5 It’s easier for vendors who adopt verticalisation to get channel partners aligned with their approach, strengthening sales-driving opportunities. 

Simplifying marketing through Martech  
The growing adoption of sophisticated marketing automation technology is also driving the growth of vertical marketing. Two thirds of B2B companies use one or more marketing automation platforms6, and spending is forecast to grow at 14% per annum through to 2023.7 Martech has simplified many elements of the marketing process, from being able to more precisely segment audiences by industry and persona, through to creating adapted content and communications for those different audiences, and then tracking how audiences are interacting with that content. A 2019 survey of CMOs found that 62% of B2B services firms are already using Artificial Intelligence to support content personalisation.8 

Not whether, but how 
The question is no longer whether to verticalise, but how you should do it to get the best results. It’s a question we can help you answer. At OneGTM, we specialise in building successful vertical GTM programmes for technology and telecommunications vendors. Next month, we’ll be publishing our latest eguideTHE VERTICAL ROUTE TO BUSINESS GROWTH – using our extensive vertical GTM experience to explore the fundamentals behind building successful programmes. 

To register to receive a copy of THE VERTICAL ROUTE TO BUSINESS GROWTH, click here. 

For more on how we can help you drive growth with vertical GTM programmes, contact us here.


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