While companies can grow with, or without having ideal customers identified, the sustainability of growth will decrease as you scale your business.
By Identifying and focusing on your Total Relevant Market you will be able to:
Retain more customers
Acquire business through expansion, which typically has a cost of acquisition (CAC) that is 50% of new business
Create focus for your Go-to-Market organization and avoid inefficient use of resources
With 120% NRR, for a $35M business, you can double your revenue every 5 years with no new customers.
Key Takeaway - Focusing on your ideal customer does not mean you need to walk away from any new business that does not fit your model. As long as your teams can provide value without over-taxing your customer teams...take that revenue.
PS: If you want early access to our Total Relevant Market Pillar Guide, click here.