As with many other technologies and business processes, sales is subject to its set of TLAs (three letter acronyms) such as ICP, TAM, and ABM. As I regularly reference these terms in my blog, I obtained permission from InsideView to republish their slide on these acronyms.
The Ideal Customer Profile (ICP) is your best customer definition. It is a hybrid of both company and contact variables. While it can be as simple as “the Fortune 500,” a true ICP looks at firmographic, biographic, technical, and signal variables. By technical, I mean industry specific variables such as which platforms are used, how many beds are in the hospital, or whether the company is a direct seller or employs channel sales. By behavioral, I’m talking about business signals such as funding events, partnerships, and M&A activity (what InsideView calls agents and other vendors call triggers).
Defining your ICP is key to strategic targeting. Without an agreed upon ICP, sales and marketing will take an ad hoc approach to customer targeting and prioritization. At best, the lack of an ICP is sub-optimal. At worst, it results in sales ignoring marketing leads and taking a “we’ll do it ourselves” approach.
The Total Addressable Market (TAM) is the full set of customers, prospects, and net-new accounts that match your ICP. Of course, some of your customers and prospects will fall outside of your ICP, but it is the net-new accounts that are the most interesting. Some call these the white-space accounts, but they are basically the companies you should begin nurturing as they represent your best hope of growing revenue. Likewise, prospects within your TAM should be a high priority while those outside should be triaged. Finally, the accounts that fall within your TAM should have high retention rates. They also represent an easy path for cross-selling, upselling, and expanding to other departments, functions, and locations. You want to go from beachheads (land and expand) to strategic partnerships with these firms so deep company intelligence is required (family trees, org charts, additional contacts, sales triggers, SWOTs, industry research, etc.)
InsideView just announced the launch of their Expert Services group and its TAM service. I’ll be covering the announcement in a future blog.
Of course, Account Based Marketing (ABM) is the broader strategy that is supported by a focus on your TAM and ICP. ABM is the set of programs, campaigns, and activities by which B2B companies target their best prospects. ABM encompasses sales, marketing, customer support, operations, etc. Once the firm agrees on which accounts are strategic, it can direct its energy towards landing these accounts and ensuring they receive the white glove treatment. While traditional demand generation and content marketing have focused on lead volume, ABM directs sales and marketing resources towards targeting and expanding business within your TAM.
Implementing ABM encompasses a set of tools and services for identifying the ideal customer profile, sizing the total addressable market, identifying white space target accounts and contacts (i.e. net-new leads), supporting web forms, automating batch and ongoing enrichment of MAPs and CRMs, prioritizing leads, embedding sales intelligence within workflows, event alerting, prioritizing leads, and assisting with lead-to-account mapping, segmentation analysis, and campaign targeting. Other ABM technologies include programmatic marketing, dynamic website display based upon real-time firmographics (visitor id), predictive analytics, and proactive sales recommendations. No vendor provides all of these tools today, much less has them integrated into an ABM suite.