Importance of creating your TAM, TM and CP
Referring back to my first guiding principal, “You have a limited amount of resources.” By defining your Total Addressable Market (TAM) and Target Accounts (TA), you will have immediate guidance on where and how you should spend your time. If an Account isn’t in your TAM, immediately DQ them for inbound. If an Account isn’t in your Target Market, you shouldn’t spend time evaluating them for outbound plays.
Overview of the work involved and the time it takes to complete lesson
This lesson simply groups information you have available from your repository and CRM.
Estimated Time To Complete : 1-2 hours : 10 Minute Read, 10 – 20 Minutes of data mining and enrichment, 30 minutes – 1 hour of Ideation and Grouping, 15-30 minutes of documentation and programming.
What is TAM, TA and CP?
Total Addressable Market (TAM) – All the Companies you can potentially work with.
Target Accounts (TA) – All the Companies that are more likely (not only most likely, we cover these later in ‘prioritized accounts’) to convert based on documented indicators. These indicators are activities these companies have in common with similar accounts who ended up converting.
Customer Profile (CP) – The documentation of all the indicators that identify your Target Market
As you can see from the above example, all we are doing is figuring out the indicators that narrow down the list of companies you should focus your time and resources on. All of the indicators you select become your Client Profile (CP).
Tips / Guidance
- To define your Customer Profile, you should look to your all of your current accounts, opportunities and past opportunities to guide you in your process.
- All of the indicators you decide to use for your Total Addressable Market and Target Market list must be from Data you have available to you without needing to have any activity on the account
- For your Total Addressable Market, look to your sales team’s disqualification criteria. If any of this information is available from your data sources, it’s a great start to your focus.
- For your Target Market definition, remember this is not going to be all the accounts you could or should go after, but a way to help you focus your attention. It doesn’t need to be exhaustive.
- Don’t feel like you need to get this 100% right on your first pass. Shoot for 70%. Your Profiles should be continually updated given the conversations you have and new clients you land.
Develop your Customer Profile
Below is a sheet from my workbook that I use with clients to develop your client profile, you can see several examples of data sources I use to help clients continue to focus their profiles.
Reminder Pro Tips:
- Are there must-have indicators that are necessary to securing a client? If so, add the indicator to your TAM.
- Do you have certain clients that, upon working with them, you determined that you never want to replicate them in the future? Make note of the red flag indicators that have made them a bad client to be exclusionary indicators in your TAM.
Now that you have a grasp on the types of accounts you serve well. Next we will take a deeper look into the people at these accounts you sell your services to.
This is part of an 8 part academy series called 8 steps to build an effective go-to-market strategy. Feel free to jump to other parts in the series if you’re further down the process or want to review concepts on a certain topic. This series is being released over a period of time so if there isn’t a link to the topic, it is not available just yet.
1| Foundational Goals: Set yourself up for success
2| Repository: Collect everything you have so far and organize it so you don’t waste time
3.1| Total Addressable Market (TAM), Target Market (TM), Customer Profile (CP) : Creating Focus
3.2| Key Buyer and User Groups : The people who you sell to and benefit from your service
3.3| Persona Framework: Get to know your groups intimately and turn them into personas
4.1| Ideal Customer Profile (ICP) = Target accounts + Entrypoint Personas : Prioritizing your highest value effort
4.2| Trigger based targeting : Automatic reasons to reach out to any account that meets your ICP
5.1| Key Benefit Statement : A distinct and tangible message so your persona knows you’re built for them.
5.2| Email Templates: 7 Proven email templates for every step of your campaign
6| Sequences and Plays: The pre-determined structure for messaging and actions needed to ensure followthrough
7.1| People: Understand the different roles people can play in your organization and when best to use them
7.2| Structure and Process: Define the structure and processes needed to be followed to ensure your systems are operating effectively and efficiently with no lead left behind
7.3| Technology: The difference of Marketing Automation, Sales Automation and CRM and how to make them work in harmony
8| Analyze: Measure your results against your goals
8.1| Iterate, Optimize and Keep Following Through