Most SaaS companies make the same marketing mistake.
They try to attract everyone who might possibly use their product, instead of focusing on the people who will definitely succeed with it.
I see it in their content strategies: “Marketing tips for all businesses” instead of “Marketing automation for B2B SaaS companies.”
I see it in their paid ads: Targeting “business owners” instead of “SaaS founders with 10-50 employees.”
I see it in their messaging: “Better results for your business” instead of “Reduce churn for subscription businesses.”
The logic seems sound: cast a wider net, catch more fish.
But here’s what actually happens: you attract a lot of people who can’t get value from your product, and you miss the people who desperately need what you’re building.
The Wide Net Problem
According to ChartMogul’s analysis of 2,000+ SaaS companies, businesses with clearly defined ideal customer profiles have:
- 68% higher trial-to-paid conversion rates
- 45% lower customer acquisition costs
- 3.2x higher customer lifetime value
- 40% faster time to profitability
Meanwhile, SaaS companies trying to serve “all businesses” show consistently poor unit economics and higher churn rates.
Why Broad Targeting Backfires in SaaS
Problem 1: Feature Confusion
When Slack first launched, they positioned themselves as “team communication for everyone.” The result? Confused prospects who couldn’t understand how Slack was different from email or Skype.
When they repositioned around “team communication for tech companies,” suddenly their value proposition became clear. Tech teams understood exactly why they needed Slack.
Problem 2: Onboarding Complexity
Intercom’s early growth was hampered by trying to serve both sales teams and support teams with the same product messaging. New users couldn’t figure out how to get value because the onboarding tried to address too many use cases.
When they created separate onboarding flows for different customer types, their activation rates improved by 40%.
Problem 3: Content That Converts Nobody
HubSpot’s early content strategy targeted “all marketers.” While they got massive traffic, their trial conversion rates were poor because the content attracted people who needed simple email marketing, not comprehensive marketing automation.
Their breakthrough came when they focused content specifically on high-growth companies that needed sophisticated marketing systems.
The Specificity Advantage
Zoom’s laser focus on video conferencing for business meetings (not general communication) helped them dominate against broader competitors like Skype and Google Hangouts.
Mailchimp’s specific focus on email marketing for small businesses allowed them to outcompete broader marketing automation platforms for their target market.
GitHub’s specific positioning for developer teams made them the obvious choice over generic project management tools.
The pattern: Specificity creates clarity, and clarity drives conversion.
How to Find Your SaaS Sweet Spot
Step 1: Analyze Your Best Customers
Look at customers with the highest lifetime value, lowest churn, and fastest time-to-value. What do they have in common?
- Company size and stage
- Industry and business model
- Team structure and roles
- Specific use cases and workflows
Step 2: Identify the Problem-Solution Fit
According to First Round Capital’s analysis of 200+ SaaS companies, the most successful ones solve “hair on fire” problems for specific customer segments.
Ask: What specific problem do your best customers have that your product solves uniquely well?
Step 3: Test Messaging Specificity
Run A/B tests comparing broad vs. specific messaging:
- “Project management for teams” vs. “Project management for remote software teams”
- “Better customer support” vs. “Customer support for SaaS companies”
- “Email marketing tools” vs. “Email marketing for e-commerce stores”
Specific messaging consistently outperforms broad messaging in SaaS trials.
The Content Strategy That Actually Converts
Instead of creating content for “anyone who might buy,” create content for people who will definitely succeed with your product.
Broad Content: “10 Email Marketing Best Practices”
Specific Content: “How SaaS Companies Use Email to Reduce Churn: 5 Proven Tactics”
The specific content attracts fewer total visitors but dramatically more qualified prospects.
The Pricing Conversation
Specific positioning also enables better pricing conversations.
When prospects see you as the obvious choice for their specific situation, price becomes less important than fit.
ConvertKit charges more than Mailchimp because they’ve positioned specifically for creators and course builders. Their customers don’t comparison shop based on price—they buy based on creator-specific features.
The Expansion Revenue Impact
Customers who fit your ideal profile don’t just convert better—they expand better.
Slack’s enterprise revenue grew 500% in two years because they focused on teams that would naturally expand usage across departments.
Zoom’s revenue per customer increased 150% because they focused on companies that would add more meeting rooms and users over time.
Specific customers have predictable expansion patterns.
The Counterintuitive Growth Strategy
The fastest way to grow a SaaS business isn’t to attract more people—it’s to attract the right people.
This applies to:
- Content: Fewer views, better conversion
- Ads: Higher cost per click, lower cost per customer
- Features: Deeper value for core use cases vs. broad appeal
- Pricing: Premium pricing for specific value vs. commodity pricing
Making the Transition
If you’re currently targeting “everyone,” narrowing your focus feels risky. Here’s how to transition:
Start with content. Create specific content alongside your broad content and measure the difference in trial quality.
Test ad targeting. Run campaigns with specific vs. broad targeting and compare cost per trial and trial-to-paid conversion.
Analyze support tickets. Customers who require the most support probably aren’t in your ideal customer profile.
Survey successful customers. Ask what specific problem led them to search for a solution like yours.
The Long-Term Payoff
SaaS companies with specific positioning create compounding advantages:
Word-of-mouth spreads faster within specific communities
Product development becomes clearer with focused use cases
Sales conversations convert better with obvious value propositions
Customer success scales better with predictable customer journeys
The most successful SaaS companies aren’t platforms for everyone—they’re perfect solutions for someone specific.
What would your SaaS marketing look like if you optimized for customer success instead of marketing reach?
Marissa Homere 