Going after the smallest addressable market still feels counterintuitive to most corporations where the natural instinct is to target the biggest audience possible. But chasing mass-markets can often inhabit the ability to uncover a genuine un-met customer need and build a product and proposition that can truly connect.
The Fintech start-up Pleo, which offers smart payment cards to help streamline business expenses, started in 2015 with a laser focus on its target customer: progressive SMEs with less than 100 employees. Four years on, Pleo has signed up over 3,500 companies in Denmark and the UK.
Then there’s the opportunity to unleash brand evangelists. Focusing on those who care most about your brand and finding ways to enable them to spread the word is the strongest and most cost-effective way to grow. Monzo’s commitment to being open and transparent about what it is doing has seen the company build an active and engaged community, resulting in more than two million customers in the UK and hundreds more signing up each day.
The power of this group was clearly shown when Monzo asked its customers to fund its next stage of growth, with Monzo managing to raise £20m ($25m, €22m) in less than three days – one of the biggest and fastest rounds of fintech crowdfunding in the UK ever – all down to its evangelical superusers, and bringing them even closer to the heart of the business.
Aran Potkin is managing partner at Zag, an independent consultancy focused on growth strategy and brand experience.
For the latest on future market trends, get a quick and clear understanding of how the key consumer shifts will affect your brand with our most comprehensive Future Forecast yet.