verticals

Verticals, in business and marketing, refer to industry-specific market segments, often called vertical markets or industry verticals. They are contrasted with horizontals, which address broad needs across multiple industries. The term also appears in corporate strategy as vertical integration, a separate concept involving ownership of stages of the supply chain.

In sales and product development, targeting verticals means tailoring offerings to the needs, workflows, and regulatory requirements of a particular industry. This approach emphasizes domain expertise, co-creation with industry stakeholders, and compliance considerations. While vertical-focused strategies can improve fit, they often involve longer sales cycles and more complex implementation, offset by higher win rates and customer retention when the product aligns closely with industry needs.

Common verticals include healthcare, financial services, manufacturing, retail, and education. Each vertical presents distinct requirements, such as data security standards, regulatory compliance, interoperability with sector-specific systems, and unique performance metrics. Vendors may develop industry-specific features, certifications, and partner ecosystems to support adoption.

Organizations may pursue vertical strategies to maximize differentiation, pricing power, and customer loyalty, or maintain a broader, horizontal approach to reach scale. The choice depends on factors such as market size, competitive landscape, and capability to deliver specialized solutions. Some firms operate multiple verticals, while others maintain a hybrid approach that combines vertical depth with cross-industry capabilities.

See also: vertical integration, horizontal market.