The sub-segment is your TAM while the sub-sub-segment is your SAM. Now the trick is to gain >35% market share in that sub-segment.
Counter-intuitive: for a startup/early-stage company, the more NARROW the initial target sub-sub market, the larger it actually is!!!!
By having that laser focus on the sub-sub-segment, your team drills down into the details (they won’t do that if you have multiple sub-sub-segments) and learn the ‘vocabulary’ of that sub-sub-segment and translated your website, marketing/sales materials into sub-sub-segment speak. Why force your target sub-sub-segment prospects to do all the translating from your (arrogant) tech-speak into their ROI-speak?
Yep, painful because it doesn’t let your employees off the hook for truly understand, relating to, and become sub-sub-segment advocates using their ‘vocabulary’.
One example: Company: disaster recovery SaaS. Focus on professionals services>legal. Changed their tagline to the ‘vocabulary’ of legal: “business continuity” .
I can share a slide showing the differences it makes in their home page!!!