Many GTM teams focus on their TAM and ICP but not the winnable addressable market (WAM) that provides you with the greatest revenue growth. At Personal ABM, we believe that your winnable, addressable market is:
- The percentage of your ICP that matches a problem profile, they have a strategic priority in place and will provide you with the greatest long-term revenue growth.
- Your *best* customers — and your next best customers that can provide greater revenue growth if they change how they work with you, use your solution, and/or buy from you.
Edgar Baum, our guest expert, mentions that the winnable, addressable market is the intersection between your valuable customers and your winnable customers (those who want to buy from you.)
Listen to this podcast to learn how you can uncover your winnable, addressable market.
Here Are the Key Points From This Podcast with Edgar Baum and Eric Gruber
- When identifying their ICP, many GTM teams do not think about where they have a differentiated story to tell to prove that they are an ideal vendor. Everyone thinks about the “ideal customer profile” but not about the “ideal vendor profile.” Take a look at your ICP and think about how many of those companies are you truly an ideal vendor for?
- Many GTM teams are not thinking about “time horizons”. How many of the accounts in your ICP are in-market now? How many have a strategic priority where you can play a big role in? How many have a need to switch vendors or buy the solutions you’re selling. Needs are different from pain points.
- Many GTM teams are ineffectively segmenting their existing customers to identify key characteristics of companies that would most likely deliver the greatest long-term revenue growth. DAT Freight & Analytics is a perfect example. Click here to read the case study on why they had challenges identifying their ICP.
- When segmenting existing customers, we should be looking at do you have a license (a reason to keep selling), current revenue and margins vs. expected revenue and margins and how is your product or service treated and how are you treated? Are you bought ad-hoc as required? Are you circumstantial where they will buy when they have a specific need? Are you a strategic partner or are you business critical. By segmenting customers, Ascension Logistics was able to identify winnable, accessible clients where they can drive at least 25% greater margins by moving them from circumstantial to being treated and viewed as a strategic partner. Click here to read the Ascension case study.
- Too many customer acquisition transactions are based on initial contract value and not on are the customers going to stick around.
- When identifying the winnable, accessible market we have to think about the category maturity of what we’re selling compared to the category maturity of how customers buy. We need to know the mentality of who we’re selling and marketing to.
- GTM teams need a greater predictor for accounts they should be pursuing today vs. 6 months, 9 months, 12 months etc.
Here Are Additional Resources to Help You Identify Your ICP and Winnable Accessible Market: