4 questions to prioritize a market segment

🔥 Based on “Best-Fit” Customers 🔥

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🟢 Who is likely to stick around?

Retention is the most important aspect of any SaaS business.

Going after a segment that doesn’t stay with your product…

Leads to BAD-FIT customers:

→ Pull your product apart

→ low LTV

→ Negative “word of mouth”

🔴 Who’s easiest to reach?

If you can’t get to your target customer…

You’re going to struggle to make progress.

Hard to reach segments should be chased in later stages of growth - When you can afford the resources to get to them.

🔵 How easy are they to sell to?

Fast deals is an indicator of “in-market” prospects.

They not only help with traction and the bottom line…

But also make great case studies and referrals.

🟣 Who is easiest to onboard?

Getting a new customer to value can be time consuming - especially for a startup still building out the product.

Adding customers that ask for new features and white-glove support can crush your resources and focus.

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👀 You’ll notice that SIZE of segment is not in these questions.

While it is certainly a factor to consider…

💢 Don’t take the bait in going after the target segment.

If they are not a fit, you’ll eventually hit a growth wall.