There are two levers an early stage founder can pull to grow their startup: → deliver the same use case for more segments → expand the use cases your product can deliver (either for one segment or multiple segments) Calendly is a rare example of a growth stage startup that has remained remarkably focused on one use primary use case: → scheduling meetings online Over time, they have used their incredible distribution to reach more and more segments and industries that have this specific need. They've become the "Kleenex" of scheduling tools and are the default even as large incumbents add scheduling tools to their much broader product suites. ClickUp has taken almost the exact opposite approach. They have expanded what use cases their product can deliver in effort to be the all-in-one solution for the entire business. The difficulty of pulling off this second strategy (for an early stage startup specifically) should become obvious when you look at the arrows. When taking the second growth strategy, the product and GTM teams are immediately pulled in multiple directions. In the first strategy, the entire business is rowing in the same direction. Each strategy has its pros and cons — and both of these companies are KILLING it. But when figuring out YOUR growth strategy, try to be honest about what your (likely very small) team can handle... and what they can't.
Calendly has a lot of room in productivity. They should do something like Motion AI for calendar blocking or anything else related to time management. More use cases needed or it will die a slow death.
Yes, but knowing when to use one of these growth strategies is also key. Many startups try to expand using one of these strategies too early. When in reality, they would be able to grow much bigger and faster than they think by focusing on doing the same thing for the same people. You don't always need different use cases or customer segments to expand. Many companies can grow to $10M or $100M serving one customer segment with one core offering.
It's a vertical vs. horizontal method. When you go vertical you can always expand to more segments and grow your ICP. Horizontal often takes a lot of budget and effort because your solution is kind of the "everything for everyone" product. Which is fantastic but hard to market. Love this graphic breakdown.
I'd rather recommend the first in terms of cost-efficiencies, but lots of startups aim for the second.
Absolutely Anthony ! Focus on a single use case, as it can be a powerful growth strategy for early-stage founders. Also, the "expand use cases" strategy can be more scalable in the long run but requires a solid foundation and a clear roadmap.
This comparison is great and easy to understand. It's important to find and use the software and strategy that best suits your goals.
Exactly, Anthony. Most people underestimate the power of focus and that's what truly brings the growth we so much desire.
I would say both strategies are way too broad for most businesses. It is very easy to fall into the trap of trying to offer way too much for too many different segments instead of just improving the core product/service. However, this is a great visualization to think about when moving into the scaleup phase!
Great visualisation of this Anthony Pierri 🎸 👏
Product Marketing Manager @ Wallix | Cybersecurity
4moI would really love to see your interview with Calendly & ClickUp CEOs, where you all discuss different strategies for their products' growth 🤓 Make it happen 💪