SAAS companies tend to get started with one or two niches, which lets them break through. And this is why SAAS companies find it hard to scale up. Because they run out of room in their niches. Whereas students of Byron Sharp – How Brands Grow, know that SAAS companies need to go broader with their targeting and continue to refresh the memory of their prospective markets.
This is why SAAS companies struggle to scale, because they need to swap from a niche approach to a more broad approach, whilst still tackling the niches. And the way you measure success of each of these is different. Many try to scale to 100 niches at once, whereas if they take a broad approach, they can find the next few niches that are responding well and go deeper on those. Which is how the two approaches can work in tandem.