Key Frameworks to Identify High-Potential Segments and Drive Growth

In my previous post, I shared how a well-defined GTM strategy lays the foundation for successful growth in B2B SaaS companies. Today, I want to go deeper into the first of the three fundamental pillars: “Where to Play” (where to compete).

In an increasingly competitive B2B SaaS environment, it is crucial to carefully select the segments and markets where you will direct your resources. This process determines the direction of your GTM strategy and is one of the pillars for achieving sustainable growth. As noted by a McKinsey (2022) study, companies that clearly define the markets where they will compete achieve, on average, 40% more efficiency in their acquisition costs compared to those that take a scattered approach.

Market Intelligence: The Essential Starting Point

Before specifically defining where to compete, it’s crucial to develop robust market intelligence. Throughout my experience leading marketing teams in B2B SaaS companies, I’ve seen that this preliminary analysis is what separates an intuitive strategy from a truly evidence-based one.

1. Market Size and Growth Potential

The first key element is understanding the actual dimensions of the market. Not all markets offer the same opportunities, nor is current market size always the best indicator of attractiveness. In the digital identity sector, for example, I’ve discovered that some seemingly “small” verticals were experiencing exponential growth due to accelerated digital transformation, outpacing larger but stagnant markets.

2. Trends Shaping the Market

Trends act as powerful accelerators (or barriers) in any GTM strategy. New regulations like PSD2 or GDPR have transformed entire market segments virtually overnight. A Bain & Company analysis shows that 57% of B2B organizations had to rethink their offerings in response to unexpected regulatory changes.

3. Market Problems and Opportunities

Greatest growth often stems from identifying inefficiencies that generalist solutions do not properly address. In my experience, under-served niches—where there is a clear problem and no solid response—offer less resistance and customers more willing to pay for a specialized solution.

4. Competitive Analysis

It’s not just about direct competitors, but all possible alternatives customers might use, including the option of “doing nothing.” A thorough mapping of direct and indirect competitors highlights intersections where demand exists but the current offerings are unsatisfactory or insufficient.

5. Unique Selling Point (USP)

To wrap up the market intelligence phase, you must clarify how your solution stands out from the rest. Sometimes it’s about technological barriers that are difficult to replicate; other times it’s a profound knowledge of a niche. Whatever it may be, this “moat” or competitive edge should be sustainable and clearly communicated in your value proposition.

Specifically Defining “Where to Play”

Strategic Market Segmentation

Once you have conducted your market intelligence, the next step is segmenting using a systematic method. I successfully used a framework with variables such as market size (TAM, SAM), sales objectives, use cases, and growth targets:

Segment	Market Potential	Sales Target %	Primary Use Cases
Fintech	€120M TAM / €45M SAM	15% year 1, 22% year 2	Digital customer onboarding
Retail Banking	€95M TAM / €35M SAM	8% year 1, 17% year 2	Fraud prevention in branches
Telco	€85M TAM / €30M SAM	7% year 1, 12% year 2	Remote service contracting

By doing so, you can prioritize initially a sector over others due to the greater potential and stronger alignment with your current capabilities.

Defining the Ideal Customer Profile (ICP)

The ICP is the microscopic precision of your “Where to Play.”

Segment	Company Type	Key Roles	Main Challenges	Decision Factors	How my solution helps
Fintech	Digital banks with 50-200 employees, series B+	CISO, Head of Digital, COO	High fraud in onboarding (>3%), KYC regs	ROI <6 months, Ease of Integration, Compliance	Reduces fraud by 70%, API-ready, Certifications

This level of detail strengthens marketing content, lead qualification, and an overall consistent sales pitch.

Strategic Prioritization: Frameworks for Informed Decisions

Market Attractiveness vs. Competitive Strength Matrix

The heart of “Where to Play” lies in choosing battles where you have high market value and low complexity. A matrix that plots “Market Value” (size, growth, profitability, average ticket) against “Easiness” (product-market fit, differentiation, in-house capabilities, sales life cycle) clarifies:

1. High Market Value, High Complexity
   • “Strategic Bets”
   • For example, imagine a sizeable enterprise deal that promises huge returns but demands significant customization, specialized talent, or lengthy negotiations.
2. High Market Value, Low Complexity
   • “Priority A”
   • This is the sweet spot: lucrative deals that can be won more easily. Teams often devote the majority of their effort here for quick ROI.
3. Low Market Value, High Complexity
   • “Do Not Work”
   • Heavy lifting for minimal payoff. Usually best to avoid or postpone. (A friend of mine used to joke, “If you really must work on these, do it on Fridays.”)
4. Low Market Value, Low Complexity
   • “Secondary Targets”
   • These deals may be small but are easy to close. For early-stage startups, they can help land those first customers and lay a solid foundation for growth.

By mapping every opportunity onto this matrix, you can see at a glance where to invest your time. Focus on Priority A deals for the bulk of your resources, reserve strategic effort for a few high-complexity, high-value bets, and avoid pouring energy into deals that offer little return or require excessive overhead. This ensures you steer your GTM strategy toward the most promising, high-impact results.

According to Bain & Company (2022), 60% of companies using this or similar methodology achieve better resource allocation in marketing and sales.

Conclusion: Precision Over Premature Scale

Companies that implement this approach report concrete results:

• 40% reduction in sales cycle length by targeting receptive segments with urgent needs.
• 35% increase in conversion rate from marketing to sales, thanks to the precision of the ICP and adapted messaging.
• Higher ARPU (Average Revenue Per User), as focusing on segments with clear needs drives customers to invest more.

In my experience, sustainable growth doesn’t come from trying to capture every possible market but from meticulously dominating the segments where your solution delivers the greatest impact.

Precision in defining “Where to Play,” grounded in solid market intelligence and structured frameworks for prioritization, forms the foundation upon which you will build the other two pillars of your GTM strategy: “What to Sell” and “How to Win.”

Remember: Markets evolve, competitors move, and customer needs change. Consequently, revisit your strategy regularly, integrate new market signals, and be ready to pivot if you discover new sub-segments or verticals with higher potential.