Total Addressable Market

What is Total Addressable Market (TAM)?

Describes the total potential revenue opportunity for a product or service. This is the biggest possible piece of the pie you could obtain. For example, the world’s oceans contain 20 million pounds of gold.

How it applies with ABM

However, trying to convert the entire ocean for gold will yield the lowest conversion rate under any given opportunity. Using ABM you can break down the TAM into target accounts worth focusing efforts towards. Going after these specific target accounts would provide a greater return on value than attempting to tackle the TAM as a whole.

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