Total Addressable Market
After completing your annual planning session, in order to reach or surpass your sales goals, we recommend understanding your Internal TAM – Total Addressable Market. You have existing clients. Now… it is time to gain more market share from them.
By now, you have rated and prioritized your clients. How well do you truly understand them? Your top 50 clients typically make up 80% of your business. More than likely, however, you aren’t capitalizing on your top 50 TAM. Are you only selling one or two of your services to them? Could you sell them a few more services? Could you offer them more solutions? Could you reach multiple locations within a company?
White Board Exercise:
Of your top 50 clients, what is the opportunity that you have within your current clients?
- If you are selling $10,000 into a client – but you know they purchases other services or products that you could sell you need to determine the TAM you can realistic capture this year.
- Assuming you feel they spend $50,000 of services/products that your company can provide then you have $40,000 of available Internal TAM.
- Set a goal for this year set at $25,000
Now… your goal is to double this client – HUGE difference!
Do this exercise again for ALL 50 clients. Once you do this for all of your top clients, then rank them.
Based on the Total Addressable Market, there is a significant difference between the $50,000 and the $10,000. This will give you a list of who to target first. Then, you create a plan on who, when and how often to get in front of or call on these people.
Start by putting together the plan for your internal Total Addressable Market. It’s a great way to start how you’re going to reach your sales goals.