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Choose Strategy Over Size
Business decisions should be rooted in a clear strategy rather than merely the size of the total addressable market (TAM). Companies must prioritize selecting their target customers and understanding their data landscape before making sweeping decisions. Both niche and broad market strategies can lead to success, as evidenced by businesses with few high-paying clients and those with many low-paying customers. The key elements influencing this choice include customer lifetime value (LTV), customer acquisition cost (CAC), pricing models, and the potential for net revenue retention (NRR), all of which are crucial in shaping effective go-to-market strategies.