How to Use Your Total Addressable Market Calculation

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Total Addressable Market analysis
An Example of How to Calculate Your Total Addressable Market
Staying in line with our previous illustration, we’ll assume that your CRM solution is, in fact, targeting US-based SaaS companies. Furthermore, you have found that most SaaS companies do not adopt a CRM till they have more than 10 employees, which cuts your market size down from 17,000 to 8,500. You also must weed out your 1,700 competitors. That gives you the final market size of 6,800 businesses.

With an average CRM cost of $1,500 per year, we can estimate your TAM to be:

6,800 SaaS Companies * $1,500 per Company/per year = $10.2 million per year

This $10.2 million figure represents the maximum potential revenue your company could earn each year if you were able to reach and sell your CRM solution to every SaaS company in your market at the average price point of $1,500 annually.

Keep in mind that TAM is an idealistic figure. In reality, it’s unlikely that any company could achieve 100% market share due to competition, market saturation, and other business constraints. However, knowing your TAM can still be incredibly valuable for strategic planning and decision-making.

Whether you’ve been in business for ten days or ten years, knowing your TAM can make it easier to navigate through tough business decisions that affect your company’s growth and profitability.

You can use the results of your TAM to determine which customer segments have the most revenue potential, as well as decide how best to allocate your sales and marketing resources.

Your TAM can also be helpful in estimating how quickly you can expect results from outbound lead generation. While large companies with deep prospect pools or relatively low ACVs may see results in as little as 30-90 days, companies will shallow prospect pools or high ACVs may take as much as six months or longer to gain traction.

Want to Know Your Total Addressable Market?
Before partnering with a new client, we complete a TAM analysis list of uk cell phone number o provide an accurate estimate of the effectiveness of our outbound lead generation services.

If you are still trying to figure out where to start, our sales experts at Martal Group are more than happy to help you build out customer segments so that you can discover the most profitable market fit for your product or service.

If you’d like to have your TAM analyzed by Martal, schedule a free consultation with our team today.

Inbound B2B Lead Generation Strategies | Martal Group / Outbound B2B Lead Generation Strategies | Martal Groupnimal overhead and processing time.

It should be testable, with clear and feasible test cases to validate its functionality, and compatible with different platforms and environments.


Code Quality in B2B sales
Since code quality is rather a notion from the tech world, most often than not, company owners and managers don’t directly link it to business results. In reality, though, it impacts business a lot. That impact could touch upon such aspects as business performance, customer relations, revenue streams, and data security. As a result, it impacts the company’s ability to win sales and compete in the market.

In the context of B2B, code quality is particularly important because B2B software is often complex and mission-critical. Below are several major reasons why this aspect should be given due attention.