The Future of Innovation: How to Expand Your True TAM and Delight Customers

The Future of Innovation: How to Expand Your True TAM and Delight Customers

Introduction:

In a world driven by technological advancements, it is crucial for entrepreneurs to listen to their customers and build products that meet their needs. This article explores the insights of Hikari Senju, founder of Omneky, and the strategies employed by successful startups to expand their True Total Addressable Market (TTAM) while creating a positive impact on their customers and communities.

The Power of Customer Feedback:

One of the key lessons Hikari Senju highlights is the importance of listening to customers. Building products that people don't want is a waste of time and resources. While entrepreneurs should remain steadfast in their vision, they must also adapt their offerings to match the needs of their customers. By incorporating customer feedback, Omneky has been able to empower human creativity and democratize growth with the help of AI.

Democratizing Growth and Empowering Small Businesses:

Omneky's mission is to lower the cost of advertising effectively online, enabling small businesses to grow and create more jobs. Traditional advertising methods can be intrusive and lack social awareness. However, with the aid of AI, personalized ads can feel more like recommendations from a close friend, enhancing the user experience. By utilizing GPT-3 to generate text and collaborating with human creators, Omneky has witnessed significant growth, with referrals being their biggest channel.

Giving Back to the Community:

Omneky has pledged to donate 1% of their time, profits, and product back to the community, demonstrating the importance of caring about the problems faced by customers and society as a whole. Effective altruism, a data-driven approach to giving back, maximizes positive outcomes and reflects the company's commitment to creating a positive impact.

Building the Right Team and Role Allocation:

Success in any startup venture heavily relies on hiring the right people and assigning them to suitable roles. By assembling a capable team, entrepreneurs can ensure that their vision is executed effectively. Each team member brings unique skills and perspectives, contributing to the overall success of the company.

Expanding the True TAM:

To continually grow and succeed, startups must focus on expanding their True TAM. There are several strategies that entrepreneurs can employ to achieve this:

• 1. Explore New Verticals: By expanding into new, key verticals, startups can tap into previously untapped markets and broaden their customer base. This was exemplified by Front, which evolved from a simple email sharing tool to a $1.7 billion contact center leader by focusing on different verticals.

• 2. Going Upmarket: Going upmarket can significantly increase the True TAM. Startups can target larger customers and charge premium prices, tapping into previously unexplored customer segments, such as regulated industries and government entities.

• 3. Doubling ACV: Doubling the Average Contract Value (ACV) can effectively double the True TAM. By providing additional value or features that warrant higher pricing, startups can attract customers willing to pay more, thereby expanding their market potential.

Conclusion:

In conclusion, the future of innovation lies in the ability to listen to customers, adapt offerings accordingly, and expand the True TAM. By incorporating customer feedback, entrepreneurs can build products that meet market needs while staying true to their vision. Additionally, by employing strategies such as exploring new verticals, going upmarket, and doubling ACV, startups can expand their market potential and create a lasting impact. Remember, success in entrepreneurship requires continuous hustle, genuine care for customer problems, and a commitment to giving back to the community.