One statistic that people tend to brush over is retention and repeat customers.
Everyone focuses on acquisition and making sure you have a stocked funnel. How can we drive more customers, how can we get more people to purchase, how do we tap new markets. This is backwards reasoning.
Everyone starts in a niche, everyone.
Facebook – college kids
Snapchat – college kids
Nike – athletes
The goal is to start with a small enough target market to have a good chance at dominating it, whatever it may be. But, past all that, you have to keep those customers, your product has to be well designed, and it has to provide something that you require daily. I think more than anything else, it has to be a little bit fun as well.
Slack is a perfect example of this. Hipchat had existed for a long time prior, but it was colored like Windows 98 and Windows 98 is boring.
Building something that changes lives is only as powerful as the amount of people that can use that product over and over and come back to you for a new one or to resubscribe because the value they receive is indispensable.
This applies to whatever you make, clothes, software, advertising, content, etc. When you find a core group of people that you resonate with, usually with some trial and error, double down on really specific demographics to increase your retention. Without it, you’re business will spike and then vanish.