July 19, 2018

GreenFig Education Series Sneak Peek Week 1: Total Addressable Market (TAM)

Jyothsna Durgados
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Jyothsna Durgados

Introduction to GreenFig Education Series

As part of GreenFig’s mission to enable lifelong learning and to accelerate skill development for high demand jobs with our microdegrees in applied business science, we are offering you a sneak peek into the GreenFig experience with our four week Education Series.

We provide highlights from the Digital Marketing Science classes taught by Tracy Eiler, CMO of InsideView. She is a marketing pioneer who is passionate about shaping the next generation of marketers. She was recently named a B2B Demand Marketing Game Changer and is ranked among the Top 30 Most Influential Women in B2B Marketing Technology.

Ms. Eiler moonlights as a GreenFig instructor, teaching the same cutting-edge topics she is advancing at InsideView, including how to align sales and marketing, define the total addressable market, and determine ideal customer profiles.

We are excited to offer our blog readers a taste of the job-ready skills our students are gaining this fall to prepare themselves for high-trajectory careers in the digital economy.

To Maximize Growth Potential, Target the Right Prospects

This is the first blog post in a four-part series that will explain the concept of TAM and provide tips to help you identify, gather data on, and target your company’s total addressable market.

Did you know most companies market and sell to the accounts already in their CRM and marketing automation systems? To expand their list of targets they advertise and run marketing campaigns to bring new accounts into their database. But is this really the best approach to finding new customers? No, and we are going to explain why.

As you run campaigns your message tends to hit the same targets again and again. Eventually, your success metrics start to weaken and your target market begins to appear drained. It becomes harder and harder to find new opportunities, but not because you have exhausted your market. More likely, it is because you are not targeting everyone in your market.

Here is a simple example; you open a lemonade stand and pitch your drink to every kid who walks past. You soon sell lemonade to every kid in the neighborhood, then interest (and revenue!) dries up. Your challenge is finding new customers, but who should you target? Well, both kids and adults like lemonade. People outside your neighborhood also like lemonade. Thirsty people, and those in hot climates, really like lemonade. And on and on.

So while your initial target market was “kids in your neighborhood”, it only took a little work to expand that market by thinking about your ideal customer. Without an ideal customer profile (ICP), however, you are casting a net and hoping targets swim into it. But with an ICP, you are better armed to look for and find everyone in your total addressable market

Blog written by Jyothsna Durgados

 

See Tracy in Action

 

For more information on GreenFig’s upcoming courses taught by industry pros like Tracy Eiler, contact us.

Paula Sansburn, COO

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GreenFig Education Series Sneak Peek Week 4: Smarter Business Decisions

Introduction to GreenFig Education Series As part of GreenFig’s mission to enable lifelong learning and to accelerate skill development for high demand jobs with our microdegrees in applied business science, we are offering you a sneak peek into the GreenFig experience with our four week Education Series. We provide highlights from the Digital Marketing Science classes taught by Tracy Eiler, CMO of InsideView. She is a marketing pioneer who is passionate about shaping the next generation of marketers. She was recently named a B2B Demand Marketing Game Changer, and is ranked among the Top 30 Most Influential Women in B2B Marketing Technology. Ms. Eiler moonlights as a GreenFig instructor, teaching the same cutting edge topics that she’s advancing at InsideView, including how to align sales and marketing, define total addressable market, and determine ideal customer profiles. We’re excited to offer our blog readers a taste of the job-ready skills our students are gaining this fall to prepare themselves for high-trajectory careers in the digital economy. Putting it together: Turn Total Addressable Market into Closed Deals This is the fourth and final post in a four-part series explaining the concept of total addressable market and providing tips to help you begin identifying, gathering data on, and targeting your company’s TAM. Don’t forget to read part one’s overview of total addressable market, part two’s tips on defining your ideal customer profile, and part three’s tips for turning TAM into your target list. Why are these concepts – the notion of distilling your target market down to the granular level and putting them into practice - critical to growing your B2B business? The answer is simple: ROI. Companies who focus their efforts on these initiatives experience better return on their marketing dollar investment. Put Sales and Marketing to Work by Turning Total Addressable Market into Targets As you look to expand and grow, total addressable market (TAM) is also used to gauge the size of new markets to enter, to justify or expand investments in a current market, or to research new product opportunities. In every case, having an accurate view of your TAM is critical to making the best business decisions. Being able to visualize your market is a bonus that helps with defining and assigning territories, allocating field resources, and focusing marketing efforts. A good example comes from HgCapital, a private equity investor based in London and Munich, who says that “being able to tell a clear story of what truly defines a company’s addressable market is a great starting point for thinking creatively about where to invest for growth”. If, for example, your average contract value is expected to be $25,000 and the total number of potential customers in a market is 1,237, then simply multiplying those two values puts the potential market opportunity at roughly $31 million. If your TAM is inaccurate, even by a small margin, you might make the wrong go/no-go decision. Again, having a “clear story” of the TAM is critical to good decision-making, at every level, from an individual marketing campaign to a strategic business-changing initiative. If you missed the previous installments in this series, you can find them here: Part 1 Maximize Growth by Targeting Your Total Addressable Market Part 2 Ideal Customer Profile Brings Total Addressable Market into Focus Part 3 Put Sales and Marketing to Work by Turning Total Addressable Market into a Targetable List Blog written by Jyothsna Durgados See Tracy in Action GreenFig students not only learn these business-critical concepts, but execute them as well. Our course curriculum includes a mini-internship, providing each student the opportunity to run a real-world marketing campaign for a real-world company. Upon graduation, GreenFig students are then prepared with the skills and experience to make an immediate impact at work. Find out how how quickly you can gain the skills needed to thrive in the digital economy. Drop us a line. Paula Sansburn, COO

Thursday, July 19, 2018

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