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AI is unlocking a new era for vertical SaaS. One important result: AI is increasing VSaaS revenue per customer, by enabling vertical SaaS companies to take on tasks previously too complex for software, Angela Strange and James da Costa write. To better understand the power of AI to VSaaS, they look at the vertical software company Mindbody, which serves fitness and beauty studios. In wave one (cloud), Mindbody handled booking and scheduling appointments online. In wave two (cloud + fintech), they expanded their business to offer payroll for staff, customer payment processing, and insurance for studios. Enter wave three: AI. We will always crave human connection for some roles (we all love our favorite fitness instructor!). However, roles where human connection isn’t a key benefit, delivering on a core product, or particularly differentiating to the business, are all candidates to at least be augmented, if not fully replaced, by AI. With the right solution, many businesses consuming VSaaS can dramatically reduce internal and external labor spend on sales, marketing, customer service, operations, and finance. This should further increase the take rate of VSaaS companies by an additional 2-10x. Read more from Angela and James in their article, linked in the comments 👇