Target vs Market: Legacy-driven broadness

Existing companies make the opposite mistake of new companies but end up in the same place. “We have 50,000 customers so our new feature needs to work for all 50,000.” This sounds logical until you realize those customers probably break into distinct groups with completely different needs.

Building for everyone means the feature ends up mediocre for everyone. Instead of transformative for a meaningful subset who become your internal advocates. A useful reframe is asking which 5,000 of your 50,000 customers would get the most value from this new capability. Start there, nail it then expand. The other 45,000 aren’t going anywhere.

Legacy-driven broadness happens because companies mistake their current customer base for their target market. But your customer base is the result of all your previous targeting decisions. Your new feature doesn’t need to serve that entire base. It needs to serve the people who have the problem you’re trying to solve.

The irony is that the “safe” approach of building for your entire market is a riskier strategy. You’re spreading resources thin across a dozen half-solutions instead of creating one solution that people can’t live without.