RampedUp works with sales and marketing agencies to help them enrich and grow their customer’s contact database. We manage 550 global professionals so a great use case for our partners is to help them identify the Total Addressable Market for their clientele. Let’s start with the basics – what is a Total Addressable Market?
Wikipedia defines Total Addressable Market as “a term that is typically used to reference the revenue opportunity available for a product or service. TAM helps prioritize business opportunities by serving as a quick metric of a given opportunity's underlying potential.”
Here is a quick 8 step process to get you going
1. Identify the product or service and associated revenue.
2. Associate the people using the product or service.
3. Divide the revenue by the users for a “Rev by user number.”
4. Import the users into RampedUp’s Data Appending Service
5. Review commonality from the append results to diagnose the TAM
- Location: City, State, Country, Region
- Employee Size: SMB / Mid-Market / Enterprise
- Industry: Also look at SIC and NAICS codes
- Department: HR, IT, Finance, Sales, Marketing
- Title Level: Manager, Director, VP, CXO, Owner
6. Use RampedUp’s List Builder to find Look Alike contacts with the same profile.
7. Suppress the existing users.
8. Multiply the list building results by the “Rev by user number.”
This quick process will allow your customers to see the revenue potential of new markets. It will also provide the actual individuals who are the potential buyers of the product. Now there are other ways to calculate a TAM – such as using accounts instead of individuals or alternative firmographic traits such as competitive or complementary software users.