Is focusing on a specific industry vertical better for early software growth?

When we launched our automation product, we positioned it as a general productivity tool for any remote team. While the addressable market seemed huge, our messaging felt too generic, and potential buyers struggled to see how it solved their specific everyday problems.

​We decided to narrow our positioning and focus exclusively on creative agencies. By tailoring our website copy and onboarding to their exact workflow, our trial-to-paid conversion rate improved significantly.

​Is it more effective to establish a strong presence in a single vertical first, or does starting narrow make it harder to expand into broader markets later?