Sizing the Prize: TAM & Opportunity Modeling
Determine Your Addressable Market & Model Your Opportunity
Leverage Alexander Group’s Revenue Growth Model™ and opportunity modeling to determine your addressable market and target your most significant opportunities. Your revenue growth strategy begins by answering these questions:
- What are your best revenue opportunities, defined by customers, products and channels?
- Do you know revenue segment potential?
- How much revenue can you capture?
The answers to these questions will determine the size of your total addressable market (TAM) and translate this into a tactical list of the target market and accounts to grow your market share. Through our revenue growth strategy and opportunity model practices, Alexander Group can help you determine your market size, prioritize your accounts and achieve your growth targets.
How We Help
Do you know your addressable market size by customer segment? Opportunity modeling identifies options within each customer segment. It informs what channels you will use to cover those customers, the job types you deploy, the headcount you need, how to optimize territories, and how to compensate your sellers. Your opportunity model starts by:
Calculating TAM with relevant data: TAM, or the total size of the marketplace, is critical for your revenue growth. You can calculate TAM by product or offering type, but accuracy depends on the quality of internal and external data you use. You will need to acquire accurate, relevant, third-party data to determine the current market share and how much-unrealized opportunity remains in the market.
Define your unrealized opportunity: Unmet needs exist within your accounts, customer segments and industries, revealing your most significant potential for revenue growth. Developing a dynamic, bottom-up, data-driven opportunity model determines an attractive buyer’s typical profile based on criteria specific to your industry. Standard measures to select account attractiveness include account size, including the number of employees and historical revenue, and vertical, historical cross-sell activity or YoY growth.
Prioritize your accounts: Using your unrealized opportunity, determine the best factors to create a stack-ranked list of accounts. Once developed, you can distribute your total unrealized opportunity across these accounts and develop the strategy and structure to go after these opportunities.
Determining your TAM and building your opportunity model set the foundation for downstream revenue growth elements, including:
- Determining your revenue segments and the value propositions for those segments that differentiate those offerings
- Optimizing workload and aligning your roles and channels to your revenue segments and opportunity areas
- Developing your ideal customer profile and determining where you have the greatest right-to-win
- Developing use cases and targeted sales plays for your buying groups
- Alexander Group can help you create opportunity modeling scenarios that help you make informed decisions on your revenue growth model and provide a statistical estimation of penetration within accounts.
Maintaining and updating your opportunity model should be an ongoing process, and we can help you build your dynamic model and ensure accurate annual updates.
Business Services Video Series: Part 2
Determine your total addressable market by using opportunity modeling to increase market share.Watch the Video
Contact Alexander Group to learn more about opportunity modeling and begin the process of growing your market share.