Conquer your Go To Market Plan with a Dynamic TAM/SAM/SOM and ICP-Led Strategy

Marketers, we just love acronyms don’t we?

But marketing acronyms are like a maze that takes grit to conquer.

Take “TAM, SAM, SOM” for example.

This is a common framework we use when creating go-to-market strategies for our clients. It stands for Total Addressable Market (TAM), Serviceable Available Market (SAM), Serviceable Obtainable Market (SOM).

And, when you combine TAM SAM SOM with insights and understanding of your Ideal Customer Profile (ICP) and Customer Personas, the magic begins to unravel and makes it easier to pull a GTM plan together.

So, buckle up as we simplify these complex concepts into your secret weapon for business growth. Don't miss out on the gold because you didn't do your homework!

The Mighty Trio: TAM, SAM, and SOM

Consider the market as an onion that you need to peel. On the outside, you've got your Total Addressable Market (TAM), the potential revenue jackpot you could hit with your product or service. This number is your optimistic dream of 'how much money is in it for us?' It's calculated by multiplying the total potential customers by your average contract value per year (ACV).

Think of it like this: you're a cybersecurity company selling solutions to internet/mobile service providers, and let’s say there are 2,000 potential customers globally. With an annual contract value of $25,000, your TAM is a whopping $50 million. Quite a juicy number, isn't it?

Peel off the TAM layer and here we have the Serviceable Available Market (SAM). This is your realistic share of the TAM, considering the limitations of your business model, such as geographical constraints or industry specialities.

The core of the onion is your Serviceable Obtainable Market (SOM) – the customers who are likely to choose your product over others. Not all the ISP/MSP brands in your SAM are going to become your customers, but don't let that deter you. Calculating your SOM helps set feasible short-term growth targets and keeps your ambitions in check.

Zeroing In on Your Ideal Customer Profile (ICP)

Now, it's time to get more specific. Your Ideal Customer Profile (ICP) is the lifeblood of your go-to-market strategy. An ICP isn't just a fancy term, it's the real, flesh-and-blood customers who drive maximum value for your business. Creating an ICP involves firmographic and technographic data points, and yes, it does involve some number crunching, but trust me, it's worth it.

Here’s an example ICP:

• Company size: >200 employees
• Budget: >$20,000
• Needs: 3-6 month window from time of sale to implementation
• Location: EMEA

Persona Crafting: Making Sense of Your Customers

Personas are the different faces your customers wear: they represent the motivations, pain points, buying habits of the folks who engage with your product. A company typically has more than one persona, and each one needs a different approach. Think of personas as your cheat codes to run super-efficient and targeted campaigns.

Here’s a customer persona, representing the type of person/decision maker our hypothetical company want to connect with:

Paulo Barreto, a 42-year-old Chief Technology Officer (CTO) at a Tier 2 Internet Service Provider (ISP), seeks to improve the customer proposition and reduce churn. He values trust, integrity, and transparency, and seeks innovative solutions to address emerging threats. Paulo actively seeks insights on cutting-edge cybersecurity measures, industry trends, and success stories from other ISPs. He prefers concise, data-driven discussions and appreciates personalised communication through online channels and professional networking platforms.

The persona is important to enable us to visualise who we’re targeting. For example, by understanding Paulo's needs, our hypothetical cybersecurity company can tailor its marketing messages, product offerings, and customer support to effectively engage with ISPs aiming to enhance customer satisfaction and mitigate churn.

The ICP Evolution: Adapt to Scale

Now comes the crux of it all. As your business scales, so should your ICP. It's a living, breathing entity that needs to evolve with your business. Consider expanding your ICP as you venture into new markets, target new geographies, or introduce advanced features.

Your ICP needs to reflect in your marketing, sales, customer success, and product and engineering strategies. Typically, our clients have to facilitate this change across these four key areas:

1. Marketing: All your marketing initiatives need to laser-focus on your ICP. Changes may include tweaking your lead scoring model, retargeting your ads, or personalising your website content.
2. Customer Success: A red carpet welcome for your new ICP customers is a must. Equip your customer success team to prioritise these customers for upsells, renewals, and churn reduction.
3. Sales: Be prepared to realign sales team compensation and targets according to the new ICP. The hunt for an upmarket segment may mean new outreach methods and quotas based on higher ACV.
4. Product and Engineering: As your ICP changes, so should your product functionality. For instance, targeting enterprise companies might require more robust features.

Finally, remember, your ICP isn't set in stone.

It's fluid and should be regularly reassessed to reflect the changing market conditions and business strategies. The key to long-term viability and sustainable growth lies in continuously refining your go-to-market strategy around a dynamic ICP.