Find your next vertical market in your current book of business

Want to choose a target vertical market out of your existing book of business?

These two metrics can help:

Annual client revenue by vertical

• How to do it: Group your clients by vertical and calculate the average revenue.

• What it shows you: Which verticals bring in the most revenue.

Annual client retention by vertical

• How to do it: Group your clients by vertical and calculate how many clients stay with you over a year.

• What it shows you: Which verticals have the highest retention.

The results can help you choose the best-fit vertical for your agency.

You can also analyze:

• Net income per vertical

• Number of referrals or inbounds by vertical

• Contract length by vertical

• Length of sales cycle by vertical

Note: Results from this exercise are more reliable when you have over 50 clients or more across multiple verticals.

Have a great day!

CQ

Frequently Asked Questions

How do I calculate annual client revenue by vertical?

Group current clients by vertical, then calculate the average revenue within each group. This reveals which verticals actually bring in the most revenue, rather than relying on assumption.

Why does annual client retention by vertical matter as a metric?

Because it reveals which verticals keep clients the longest. Grouping clients by vertical and calculating retention over a year shows where the agency's service and fit are actually strongest.

What other metrics can supplement these two core ones?

Net income per vertical, number of referrals or inbounds by vertical, contract length by vertical, and length of sales cycle by vertical, each adding another angle to the overall picture.

Why does this exercise require a certain client volume to be reliable?

Because results are more meaningful with over 50 clients spread across multiple verticals. Smaller sample sizes risk skewed conclusions that don't accurately reflect real patterns.

What's the actual value of running this analysis before choosing a vertical?

It replaces gut feeling with real data from an existing book of business, revealing which vertical already shows the strongest revenue, retention, and other key indicators, rather than guessing at the "right" choice.