Why is it essential to quantify TAM before beginning ABM?

Why is it essential to quantify TAM before beginning ABM? VLMS Global

TAM (Total Addressable Market) and ABM (Account-Based Marketing) are two complicated marketing and sales concepts. If you are utilizing an ABM pipeline to identify your finest prospects, you'll need to be aware of your whole range of alternatives. You can't find the greatest accounts until you properly comprehend your market. If you're having trouble seeing ABM results, reassessing your TAM might be a good idea.


The largest market reach that a hypothetical product/service can have is referred to as the total addressable market. With a webinar tool, for example, the TAM might be all firms doing online presentations. However, no company, even the greatest multinational firms, can grab their whole market share. Businesses may perform more complex estimations of any business's market opportunity using TAM as a preliminary step.


An account-based marketing model enables for more specific client targeting. In an ABM pipeline, a firm uses its TAM to identify its ideal client profile and then does targeted contact for these accounts. The ABM consumer has a more reasonable and efficient perspective on a company's prospects for growth.

TAM before ABM

But, if that's the case, what's the point of calculating TAM in the first place? TAM is the beginning point for every commercial proof of concept market research.

TAM assists company owners in determining whether their venture is commercially viable. A business cannot survive if just a few individuals consume the products it produces. The cost of manufacturing and the market for which it is offered must be comparable. TAM is often the first step in persuading potential investors to invest in the development of a product or service. It demonstrates that there is a market for the solutions that the firm intends to provide.

Application of ABM funnel

After you've determined your potential customers via ABM, you'll need to grab their eyes. Sales outreach and marketing efforts can be used to accomplish this. The ABM funnel may also be broken down into portions. Using several email lists for various categories of clients is a typical practice. These lists can be made based on variances in product preferences, age, gender, and purchasing habits, among other factors.

You may customize your outreach and solve unique challenges for distinct prospects by employing segmentation. This level of personalization necessitates the use of a CRM and marketing system that is computerized. Leads may be categorized into the right groups and linked to the relevant initiatives once the data has been entered into the company's CRM.

Analyzing Buyer Intent data is another important consideration when developing an ABM approach. Buyer Intent data reveals how much growing interest an account has exhibited in topics related to your offering, as well as their chance of purchasing. Intent data aids lead scoring by allowing various accounts to be categorized based on where they are in the purchase process.

To achieve faster-assured outcomes, prioritize leads that have moved farther in their purchasing process for sales. VLMS helps prioritize hot leads in real-time by identifying accounts with high purchase intent based on subjects connected to your product.

Data requirements for Tam and ABM

Account-based marketing starts with a TAM study of the corporation and then refines that market to locate clients who might be likely to be interested company's product or service. A large quantity of prospect targeting data is required for the account-based marketing system to perform. Unlike TAM, which just needs quantitative data for broad projections, ABM requires more detailed information.

Account-based marketing necessitates maintaining contact information and other metrics for customers who wish to engage in a company's products or who meet the company's desired buyer persona.

The information gathered from direct research on the firm is a straightforward means of establishing these contact data. Finding precise, thorough information, on the other hand, is challenging and time-consuming. Choosing a data source may help reduce the time and cost while also ensuring the success of your ABM efforts.

To ensure our 95 percent accuracy, VLMS employs over 1400 human researchers who analyze and update our contact data every 90 days.

Using TAM and ABM together

To calculate the ABM demographic, TAM is required. The relevance of your target audience in boosting sales, marketing, and CRM is conscience. However, the ABM segment of your TAM audience plays an important part in evaluating a company's overall performance.

When a company's predicted ABM audience with TAM is compared to real active ABM outcomes, it can illustrate how much of their ideal market they've been able to acquire. If there is a significant disparity between the two statistics, you should reconsider your lead-generating tactics.

An ABM funnel method is your greatest buddy if you're searching for a decent market research strategy that will assist the firm to outperform the competition, and your TAM evaluation can help ensure you're looking over all your alternatives. Use VLMS, the most comprehensive data source for accurate B2B lead generation, to ensure that the engagement levels represent the team's work and attention.