Expanding Your Total Addressable Market (TAM)
In the B2B world, it's easy to fall into the trap of thinking your business can only serve a very specific type of client. For example, you might focus exclusively on health and wellness Shopify stores generating $150k per month and based in the USA. This example is common because it highlights a specific niche with measurable characteristics, making it easier to tailor your outreach and marketing efforts. However, broadening your perspective can uncover untapped opportunities in related industries and expand your Total Addressable Market (TAM). While this seems specific, other niches like fitness apparel or organic food shops could also benefit from what you offer. While this level of specificity can be helpful in some cases, it also significantly limits your Total Addressable Market (TAM).
Why Limit Yourself?
Focusing on such a narrow market can lead to missed opportunities unless your product or service genuinely cannot serve other niches. Broadening your approach might reveal untapped client segments that could benefit from your offerings. Expanding your TAM means considering other types of companies that could also benefit from your offering. For example, a software company that initially targeted only financial institutions successfully broadened its TAM by adapting its solutions for healthcare and education sectors, leading to a significant boost in revenue. For instance:
Why not work with Shopify stores generating $150k per month or even $50k per month, whether they sell fitness gear, organic foods, or other products?
Is servicing a supplement Shopify store really that different from working with other types of stores?
Realistic Expectations
Before narrowing your focus, ask yourself these questions:
Have you consistently closed deals with your specific target market?
Answering this can help you evaluate whether your current niche focus is truly effective or if adjustments to your approach are needed to unlock new opportunities.Do you believe that specifying such a narrow niche on your landing page will significantly increase client sign-ups compared to a broader targets?
If your answer is "no" to either of these questions, you might be unnecessarily limiting your potential.
Broader Campaigns = Greater Success
While running a specific campaign targeted at your ideal market is fine, don't limit your entire business to just one area. Broader campaigns can:
Reach more potential clients.
Increase your chances of success.
Adopting this mindset can benefit both your outbound efforts and your overall business strategy by improving key business metrics like lead conversion rates, customer acquisition costs, and overall revenue growth. By expanding your TAM, you create opportunities to connect with clients you might have overlooked.
Get Expert Guidance
To refine your approach further, make sure to join our Slack Community and participate in our weekly Live Calls. One of our experts will review your Cold Email Campaigns, Scripts, and ICPs, offering actionable tips and tricks to help you improve and expand your TAM.