Here’s all the metrics you can improve by narrowing your market:
- Word of mouth / virality - When you have a clear, focused marketing message (e.g. “Volley is a community for entrepreneurs to help each other” vs. “Volley is a community for people to help each other”) it becomes easier to spread to the right people. I now might think to tell an entrepreneur friend about it if they need help, whereas before I didn’t link “Volley” with “Entrepreneurs” in my mind.
- Conversion rate - I’m more likely to sign up for a community for entrepreneurs than a site that lets people help people, because it’s more clear what kind of help I can expect to get and give.
- Activation - If you have a concentration of people who share similar needs and abilities, more requests will get fulfilled quicker than if there is a huge diversity of needs from different kinds of people. Basically, you can reach market liquidity faster. This will get more people to the “magic moment” where they experience the core product value (a request for help is fulfilled) faster.
- Retention - Since I know this is about help for entrepreneurs, I have a stronger trigger in my head and might remember to use Volley than if it was for any kind of help. Also, since my first request was more likely to get fulfilled, I’m more likely to come back.