The Link Between Market Growth and ICP Growth
Focusing on a broader set of customers inevitably leads to growth of customers that fit your ICP.
Segmentation theory argues that segment your best fit prospects / customers and customize your messaging to those people.
While there is truth to this, especially in enterprise B2B environments where ABM is a lever, broader awareness marketing still has massive benefits:
- You inevitably reach your ICP as you increase your awareness in a broader category (e.g. Trello captures all types of organizations and functions by going after the broader project management space)
- You enable customers to identify additional expansion ICPs for the business (e.g. verticals and markets who your perfect segmentation strategy ignored)
- You grow the brand as more people know of you and refer you as a solution (the downside is your CAC increases as you go after a broader market so this needs to be managed)
Even in environments where TAM is super small, there needs to be an element of marketing that goes broad to increase market presence.
If you limit your marketing to ABM efforts simply because your TAM is small, marketing's impact on revenue will also be limited.
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