Are you aware that most of the marketers target to existing accounts from their CRM and MAP systems? For increasing their list of targets, they run & promote campaigns to fetch new accounts in their database. Do you feel it’s the best method for finding new customers? No, and let’s see why.
While running campaigns, your message usually hits to the same target over and over again. Resulting in your success metric to weaken and your market starts to appear exhausted. It becomes difficult to find new opportunities, not because you have drained the market. More likely, because you are probably not targeting your ideal profiles.
Have a look at a simple instance: you open an Ice-cream shop and pitch your ice-cream to kids who pass by. Sooner you have sold ice-creams to every kid in the neighborhood, then interest (and revenue!) dries up. Ideally the challenge is of finding new customers, but whom should you target? Well, both kids and adults like Ice-creams. People outside your neighborhood also like ice-creams. Thirsty people, and those in hot climates, really like ice-creams. And on and on.
So while your preliminary target market was “kids in your neighborhood,” it only took a little work to expand that market by thinking about your ideal customer. With a deciding an ideal customer profile (ICP), ICP can help you in finding your total addressable market.
Being thoughtful about your total addressable market certifies you’re targeting every potential prospects. Setting your TAM isn’t easy to say, for that firstly you need to define your ICP.
TAM & ICP not only does help you finding more customers but they also help you focusing on appropriate customers. Reaching out to prospects that have no need of your offerings is just wasting your ROI. And, you’re missing out on revenue if you aren’t targeting everyone who fits your ICP.