When I co-founded Le VPN over a decade ago, I had a clear vision of who our ideal customers were: tech-savvy individuals deeply concerned with security and privacy. My co-founder, who was part of this community, knew their pain points inside and out from countless interactions on IT forums and communities.

This focus gave us a strong start, helping us grow steadily by addressing specific needs with precision. But as time went on, our customer base grew to include expats, digital nomads, media enthusiasts, and more. While exciting, this expansion blurred our messaging and created new challenges.

It wasn’t until we revisited our core audience and decided to niche down that our SaaS business truly transformed. This is the story of how narrowing our focus not only simplified our strategy but also became the key to long-term growth.

1: The Challenge of Being Too Broad

Initially, our niche was crystal clear. We catered to a specific group—tech-savvy individuals who needed a VPN for privacy and security. This focus made everything straightforward. We knew exactly what features to prioritize, how to market, and where to find our audience.

But as the business grew, we attracted other customer segments. Expats wanted a VPN to connect to their home country. Travelers needed a solution to bypass geographic restrictions. Media enthusiasts sought better access to streaming platforms.

While broadening our reach seemed like a logical step, it created problems. Our marketing messages became diluted as we tried to appeal to everyone. Each segment had distinct needs, and addressing all of them equally spread our resources thin.

As competition increased, we realized we couldn’t keep up with the growing demands of such diverse customer groups. That’s when we understood the importance of niching down—not just for clarity but for survival.

2: The Decision to Niche Down

The turning point came when we decided to conduct customer interviews to get back to the basics: Who were our most loyal customers? What did they truly value in our service?

Through these conversations, we discovered that our original audience—those deeply concerned with security and privacy—remained our most consistent and loyal customers. They valued the features we had built with them in mind, and their needs aligned perfectly with what we wanted to offer.

Around this time, we also acquired My Private Network (MPN), a UK-based competitor. This acquisition brought in a new segment of users: retired British individuals living abroad who primarily wanted a VPN to watch their favorite British TV programs. This was a game-changer.

By focusing on these two key groups—security-conscious users and British retirees—we were able to refine our service. Our marketing became sharper, and our product features were tailored specifically to meet their needs. This clarity gave us the edge we needed to compete effectively in a crowded market and keep our leadership positions in France and the UK.

3: The Transformation and New Business Focus

Niching down had an immediate and measurable impact on our SaaS business. 

Impact of niching down on our marketing

Our marketing campaigns, which previously felt scattered, became highly targeted. We knew exactly what to say and where to say it.

We spoke directly to our core customers’ pain points and needs. For example:

• For privacy-focused users, we emphasized robust security features and data protection.
• For British retirees, we highlighted seamless access to UK television channels abroad.

Impact of niching down on our product development

Our product development process also became more streamlined. Instead of trying to cater to everyone, we focused on features that mattered most to our core users. 

For example, for the privacy-focused audience, we enhanced security protocols and added features like kill-switch functionality. For the British retirees, we optimized servers for streaming UK-based content.

Impact of niching down on our customer service

Customer service improved as well. With a clearer understanding of who we were serving, our support team could address specific concerns more effectively.

The acquisition of MPN was a great case study in the power of focus. While we had never considered targeting British retirees before, MPN had built its entire business around this niche. Learning from their approach and integrating their customer base into our service showed us how impactful a well-defined niche could be.

Conclusion: Real-Life Impact of Focus in a SaaS Business

This journey taught me that focusing on the right audience doesn’t limit growth—it amplifies it. By deeply understanding our customers, we turned their loyalty into our biggest competitive advantage.

Our clarity in who we served transformed every aspect of the business. It allowed us to improve retention rates, build a stronger brand identity, and stand out in an increasingly competitive SaaS market.

I’ve seen similar transformations with other founders I’ve coached. Whether it’s identifying their most profitable customers or redefining their offerings to better serve a specific group, niching down consistently leads to better results.

If there’s one thing I’ve learned from growing Le VPN, it’s this: Success in a SaaS business doesn’t come from trying to be everything to everyone. 

It comes from focusing on the people you can serve best and creating an experience that keeps them coming back.

If you’re feeling overwhelmed by trying to serve too many segments, take a step back. Ask yourself: 

• Who are my most loyal customers? 
• What do they value most? 
• How can I make my product better for them?

Whether you’re just starting out or rethinking your strategy, niching down doesn’t mean limiting yourself—it means focusing your energy where it matters most.

To help you get started, I’ve created a free guide, “How to Conduct Effective Customer Interviews.” This guide will walk you through the exact steps I used to uncover insights that transformed my business.

Download the guide today and take the first step toward building a SaaS business with clarity and focus.

Your audience is out there, waiting for the solution only you can provide. Focus on them, and the rest will follow.