Being more aware of your Total Addressable Market (TAM) is critical for increasing your revenue opportunities. Whether you’re in sales or marketing, your target audience is typically a particular portion of your TAM that fulfill a specific ideal customer profile.
Calculating your TAM correctly and to its maximum potential gives you a solid foundation from where you can generate targeted account lists for your sales and marketing groups. This helps your teams focus their efforts on the prospects with the highest inclination to buy and prevents them from wasting time and resources on those who do not best fit the pain points that your company can solve.
Benefits of a TAM Backed By Tech Intelligence
Building your TAM correctly requires you to go through all the accounts you already have and create a structure within your CRM and marketing automation systems that makes it easy to select and prioritize the accounts with the highest revenue opportunity.
Many companies use simple firmographic criteria such as industry, number of employees and yearly revenue to help with account selection. However, more progressive companies also use technology intelligence to create more meaningful segments. This criteria can include detailed information on the technology products installed at an account, what they spend on those products and when the contracts are up for renewal. By having these type of granular insights, sales and marketing teams can be much more efficient, relevant and effective in their outreach.
Improve Company Culture
Sales and marketing teams serve influential roles in TAM and target account development. Redefining your TAM to maximize your sales opportunities fosters a cooperative environment by enabling these groups to serve as a single revenue team. With a system in place that allows sales and marketing to define their ideal customer profile, these teams can direct their resources toward the same accounts. Having this shared knowledge enables your sales and marketing groups to celebrate wins together because it will be easier for them to focus on the accounts that offer the most potential value and combine their efforts to drive more wins.
Accelerate Startup Success With TAM
Investors look at the Total Addressable Markets of tech startups to analyze the growth of the companies over time. For a startup, your TAM plays an influential role in convincing investors that your company will scale quickly enough to capture opportunities. Your TAM also shows insights into how your company analyzes its market, your ideal customer, and provides a guideline for product growth. Having a quality understanding of your TAM enables your company to capitalize on future pitches and instill confidence in investors.
How HG Insights Can Reinvent Your Total Addressable Market
HG Insights’ tech intelligence allows your company to finally identify your true TAM by providing your business with the tech intelligence you need to prioritize the right markets and find accounts that will drive more revenue faster.
Learn how we can help you identify the markets with the most potential value revenue for 2020 by defining your TAM and putting it in action!
TAM & Market Analysis in Action
Tegile, a Western Digital Brand, used tech install data from HG Insights to maintain a strict focus on the companies who were best served by their solutions. After identifying the right accounts with tech intelligence, Tegile managed to achieve a 64% lift in closed/won revenue prediction.